INFORMATION ABOUT INFOINVEST

SEPI has started a far-reaching program for industrial revitalization through Infoinvest. The goal is to promote new centers for investment and economic growth thanks to the transformation of areas which underwent industrial restructuring and rationalization during the seventies and eighties into areas with a new industrial structure.

Corporate Parks

This program covers over 26 million square-meters, which are located in se Asturias (Principado de Asturias Business Park), Basque Country (Abra Business Park), Comunidad Valenciana (Business Parks of Sagunto, Parc Sagunt and the Logistics Platform of Requena), Cantabria (Cantabria Business Park and Villaescusa Business Park), Andalusia (Puerta Granada Business Park), Galicia (20 business parks altogether) and Aragón (Industrial Logistics Platform Teruel PLATEA).

The first of the projects started is the Parque Empresarial Principado de Asturias, in Avilés. The 2.1 million-square-meters which the Park covers were before occupied by the facilities belonging to the former steel producer Ensidesa, and which had been closed down. The first phase was opened on December 2002, and it covers a total surface of 1.1 million square meters, and has involved the investment of 70.87 Million Euros. It houses almost 100 companies belonging to the services, logistics or the steel ancillary industries.

The project Abra Parque Empresarial entails activities being carried out on a total surface of 795,000 square meters, of which 437,964 square meters will be reserved for industrial uses. Located between the towns of Abanto and Ciérvana and Ortuella, on the left margin of the Nervión river, it is just 15 kilometers from Bilbao and 10 kilometers from the port. The first phase of the Abra business park was opened on February 4th, 2004. It is envisaged to invest a total of 89 Million Euros in the development of Abra Parque Empresarial.

In Cantabria three actions will take place: one in the town of Astillero, another near Santander, while the last one will be located on the town of Villaescusa. The first of these projects has already started, the so-called Parque Empresarial de Cantabria, which will provide to industrial uses 329,000 square meters, while another 227,200 have been turned into a leisure area. The investment has achieved the goal of restoring an area ruined by the mining industry has already been achieved, as well the regeneration of the industrial activity in the area.

The Parque Empresarial de Villaescusa will be located on a 446,778 square meter surface, sited on an old waste treatment plant of the former company Agruminsa, known as the balsa de Parbayón.

In the Comunidad Valenciana, the regional government and SEPI, through Infoinvest, already had the Parque Empresarial de Sagunto (Sagunto) and now have started the Parc Sagunt (Sagunto). Also in agrement with the Town Hall of Requena SEPI has promoted the Plataforma Logística de Requena.

Parc Sagunt is a new industrial park with cutting edge infrastructures, which involves the development of 10 Million square meters and investments amounting to 150 Million Euros. The development of Parc Sagunt will be carried out in two phases: Parc Sagunt I, with around 3 Million square meters of industrial land, which has already begun selling the land-sites, and Parc Sagunt II, with a surface of 6.6 Million square meters. Parc Sagunt promotes a comprehensive and sustained development of the area, with initiatives which include innovation, intellectual capital, communications, wealth growth and quality of life. The investment made by the regional government SEPI into the business park will amount to 281 Million Euros. Equally, Parc Sagunt will include into its structure the Ingruinsa industrial park, with a gross surface of 541,000 square meters, and which has 134 companies already located and over 20.49 Million Euros for investment.

The Plataforma Logística de Requena will cover a total surface of 1,660,000 square meters. A total of 80 Million Euros will be invested in the park. Once the work is finished, the Parque Empresarial de Requena will be the third biggest industrial area in all the Comunidad Valenciana. The development of this site will be carried out between the years 2007 and 2009, and it is envisaged that the sale of the land-plots will begin in 2007 and will be completed in 2011.

The Parque Empresarial Puerta de Granada goes back to the transformation of the industrial facilities of the old tobacco-processing company Compañía Española de Tabaco en Rama (Cetarsa) and to the restoration of the facilities which already existed. With a surface of over 58,000 square meters, it will have the most up-to-date facilities, as well as a wide range of services. It is envisaged that the industrial zone will be supplemented by two office areas for service companies and for commercial activities.

In the beginning, it was envisaged that Galicia´s business parks would be located on La Coruña and Pontevedra. However, on February 2004, the regional government of Galicia and SEPI subscribed a new collaboration agreement for developing 5 business parks located on La Coruña, Lugo and Pontevedra. These parks will be added to the 15 already envisaged by both institutions, as part of the Plan Galicia, for promoting corporate activity and for job generation, especially in the areas most affected by the oil spill provoked by the oil-tanker Prestige.

The investment earmarked by both institutions for the development will be channeled through the company Suelo Empresarial del Atlántico, S.L., in which Infoinvest (an affiliated company of the SEPI Group) has a 85% stake, while the remainder is owned by the regional government, through the Instituto Gallego de La Vivienda y Suelo (IGVS).

The Plataforma Logística - Industrial projected by Platea in Teruel, with a surface of almost 2.5 Million square meters is the result of an initiative taken by the regional government of Aragón with the aim of consolidating the logistics infrastructure of this region. In the first phase, 1.3 Million square meters will be developed. Once it is completed, Platea will be capable of providing space for over 350 companies.

Vipar Parque Empresarial was presented in Cantabria on October 14th, 2008. The Council of Ministries authorized a majority shareholding participation (85%) by SEPI's affiliated company, Infoinvest, S.A., in the incorporation of the company Vipar Parque Empresarial, S.L. Vipar Parque Empresarial, S.L. has the goal of promoting a Regional Interest Singular Plan in the town councils of Villaescusa and Piélagos. Within the framework of the above Plan, the business park will foster the economic development of the area around its location. The lack of land for generic tertiary uses in Cantabria, together with the growing demand provoked by this region's general economic development provide an opportunity for the development of this land for entrepreneurial uses.

Activity of the company in year 2009:

The year 2009 confirmed the difficulties which is suffering the real-estate industry since the end of 2007, aggravated by the situation of the financial markets and the credit crunch, which has underscored the general weakness of the market demand, and especially, in the entrepreneurial and industrial areas, where the Grupo INFOINVEST develops its activity.

The office market in Madrid, which is extremely important for the activity of the company, closed the year with a trading volume of 0.3 Million Euros, an exceptionally low figure, and 39% lower than that recorded in 2008, a year in which it had already recorded a 48% fall, which raised the availability rate to 1.2 Million square meters, or 10% of the existing surface, the highest percentage during the last few years. This situation has continued exerting a downward pressure on prices, both for sale and for rent, which in some cases have experienced falls of over 20%. The market for industrial and entrepreneurial surfaces has also recorded an increase in the surface available, even in land development and promotions for logistic purposes, which has entailed a general fall in prices.

In this difficult market environment, Grupo INFOINVEST has continued its activity of promoting industrial land, especially in geographical areas which have suffered industrial reorganization processes. Its activity takes place on an aggregated surface of more than 14 Million square meters in business parks located in Asturias, País Vasco, Galicia, Valencia, Andalusia and Cantabria, which are executed either directly by INFOINVEST or indirectly through its affiliated companies. The total investment in all these activities will exceed 800 million euros, of which 410 million euros have already been disbursed, after the investment of 43 Million Euros in 2009. Equally, the company has a 25% shareholding in the company Platea Gestión, which is promoting 2.5 Million square meters of logistical land in Teruel.

Mention must be made to the progress recorded in the business park Parque Empresarial del Principado de Asturias, with the completion of the work in two office buildings, and the almost completion of a third building, as well as the signing of an Agreement with the regional government of Asturias and with the Port Authority of Avilés for the execution of an underground parking lot at the Cultural Centre Oscar Niemeyer.

It is also worthwhile to highlight the actions carried out in the business parks in Galicia, where of the 14 business parks projected in the provinces of La Coruña, Pontevedra, and Lugo, eight have been concluded, or are nearing their conclusion. In the business park of Sagunto, which presents an execution level of over 80%, a Memorandum of Collaboration was signed with the regional government of Valencia and the Sagunto city council for financing and executing the building of a second lane in the business park's ring road. In the Requena (Valencia) and Ibar Zaharra (Vizcaya) projects, work continued on the urban development license and for the purchase and land preparation work, in order to begin soon its construction.

INFOINVEST has also an important building portfolio for rent, mostly made up by offices which have been rented to other companies of the SEPI Group, with a value in books at the end of 2009 of 190 Million Euros. Among them, the most important is the land purchased for building, beginning in 2010, of the new headquarters of AGENCIA EFE, which will be operating in 2012.

The Group recorded a net income of 5.2 Million Euros in 2009, a lower figure than in 2008 due to the difficulties in the real-estate markets and to some extraordinary sales executed during the previous year.

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