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Business Case

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Gecina

Gecina – Socio economic impact analysis

  • 1/ Context

    Gecina owns, manages and develops property holdings worth 10.6 billion euros, with 90% located in the Paris Region. The Group is building its business around France’s leading office portfolio and a diversification division with residential assets, student residences and healthcare facilities. Gecina has put sustainable innovation at the heart of its strategy to create value, anticipate its customers’ expectations and invest while respecting the environment.

    In order to assess the socio-economic contribution of its activities in the region of Ile-de-France and nationwide, Gecina has worked with Utopies to quantify its direct, indirect and induced effects in the region where Gecina operates. In addition, the economic catalyst effects from the economic behavior of its tenants have been evaluated.

  • 2/ Mission

    Using the most advanced techniques of economic impact assesment (i.e input-output modeling), the mission consisted in:

    • obtaining from Gecina the detailed list of expenses, its total payroll and the amount of paid tax,
    • identifying the territories impacted by these monetary flows,
    • measuring – thanks to LOCAL FOOTPRINT® tool, developed by UTOPIES- the direct, indirect (resulting from the supply chain) and induced impacts (resulting from household consumption and government expenditure) in terms of number of sustained jobs and added value generated (i.e contribution to GDP)
    • measuring the catalytic impacts. This measurement required a supplementary data collection and consideration of hypothesis with regard to the type of tenants and portfolio of the property management company.
  • 3/ Results

    The economic weight of a major player in the real estate sector has been measured, and Gecina learned how deep its economic contribution is for Paris region and nationwide.

     

    The economic footprint allows to quantify and understand the various economic ripple effects generated over a 12 month period through the payments of expenses, payroll and taxes.

     

    The results have been detailed by sectors and by region, and by type of impacts. The LOCAL FOOTPRINT analysis revealed mainly that :

    • 1 Gecina job in France sustains around 10 jobs in the rest of the French economy (in other terms, the 484 employees of Gecina support almost 4 440 jobs indirectly or in an induced way)
    • The indirect and induced impacts resulting from Gecina activities generate more than €330M in terms of GDP,
    • 670mlet by Gecina equals to 1 job sustained in the French economy,
    • The tenants economic behavior (leading to Gecina‘s catalytic impacts) contribute approximately to nearly €5.3bn in France or more than 135 000 jobs nationwide.

     

    These results have been published in the reference document 2014 of Gecina, and have also led to the first edition of a workbook of socio-economic contribution, which shed additional lights to the integrated report 2014.