Article Index — 12
Annual Report 2019

“Geographical distribution creates a comfortable position for the company”

Our aim is to split our business equally between Western and Eastern Europe, says Philippe Pannier, Ghelamco’s CFO.

Ghelamco Group’s real estate portfolio is based on geographical distribution and market segmentation, limiting the economic risk for the group.

Geographically, Ghelamco aims to split its business between two main markets, Belgium and Poland. In addition, Ghelamco is active in different market segments.

The portfolio consists mainly of offices and residential projects, complemented by logistics and commercial real estate.


“In our segmentation, we follow the market. We can do this thanks to our sizeable, diversified land portfolio”, CFO Philippe Pannier explains. “We can focus on certain segments when the time is right.”

“By issuing bonds, we’ve achieved an equilibrium between short- and long-term financing”

Philippe Pannier CFO Ghelamco

Ghelamco has enough flexibility to meet market demand, both geographically and in the segments the company is active in.

Interest rate increase

Financially, the risk associated with an interest rate increase is limited for Ghelamco. “Of a project’s total investment costs — from land acquisition to development and marketing — financial expenses account for just 8 percent”, says Philippe Pannier.

This means that the impact of (upward or downward) interest rate fluctuations on an individual project’s general profitability is quite limited. 

Banks and bonds 

“At group level, half our debt is made up of short-term variable-rate bank loans. The other half is composed of long-term, fixed-rate bond tranches.

“We’ve worked hard to achieve such financing; the mix we now have ensures a solid synergy between credit maturity dates and project lead times”, the CFO concludes.

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