ANNUAL REPORT 2019...Vacant space ERV 9 2 1% ERV Portfolio 85 82 15% EPRA Vacancy Rate Portfolio 11.0% 2.8% (8.2) 2 EPRA NAV (Net Asset Value) 4 EPRA Net initial Yield & Topped-up

ANNUALREPORT2019

A5

M40

M30

A1

A2

A3

A4

NUMBER OF ASSETS BY AREA OF MADRID

KEY OPERATING DATA

KEY FINANCIAL DATA

N

The image on the cover is of the ARQBÓREA building.

3

3

10

Gmp AT A GLANCE

CBD / City Centre

M-30

North Madrid

Number of assets

Number of office buildings

Total revenues

Net debt

Occupancy at end of

2019

Gross leasable area

above ground

EBITDA

LTV

Number of clients

Parking spaces

GAV

EPRA NAV

Buildable area for future

developments

16 / 26

€116m

€789m

345,565 sq m

€65.3m

34,7%

5,414

€2,283m

€1,511m

97% 188 50,928 sq m

MESSAGE FROM THE CHAIRMAN 01

3AUDIT REPORT AND FINANCIAL STATEMENTS

5

6

I N D E X

1.1. Milestones

1.2. Key data

KEY ASPECTS OF 2019

2.1. Mission, vision and core values

2.2. Business areas: strategy and business model

2.2.1. Core business: property-owning business

2.2.2. Other businesses: residential tourism development

2.3. Financial structure

2.4. Company structure

2.5. Shareholders

2.6. Corporate governance

2.6.1. Board of Directors

2.6.2. Consultative committees

2.6.3. Management Team

2.7. Ethics and compliance

2.7.1. Ethics at Gmp

2.7.2. Regulatory compliance

2 THE COMPANY

4.1 Description

4.2 Office buildings

4.3 Land portfolio

4.4 Las Colinas Golf & Country Club

4 COMPANY PORTFOLIO

3.1. Consolidated figures

3.1.1. Income statement

3.1.2. Valuation of portfolio

3.2. Core business: property-owning business

3.2.1. Description of client portfolio

3.2.2. Occupancy

3.2.3. Average rental revenue

3.2.4. Projects/Investments

3.2.5. EPRA ratios

3.3. Other business: residential tourism development

BUSINESS EVOLUTION OVER THE FINANCIAL YEAR

CORPORATE SOCIALRESPONSIBILITY 5.1 Innovation from sustainability

5.1.1 Corporate Social Responsibility

5.1.2 Innovation

5.1.3 Transparency and communication

5.2 Client and user experience

5.2.1 Customer and user satisfaction

5.2.2 Health, safety and wellbeing of tenants

5.3. Our talent

5.3.1 Human team

5.3.2 Training and team development

5.3.3 Employee satisfaction

5.3.4 Team health and safety

5.4. Environmental protection

5.4.1 Climate change and energy efficiency

5.4.2 Circular economy

5.5. Community engagement

5.5.1 Responsible supply chain management

5.5.2 Social Action

5.6. COVID-19

5.7. About this report

Index EPRA contents

Index GRI and EPRA contents

6

154

10

1215

16

62

64

65

99

100

44

102

104

104

105

109

113

113

115

116

116

119

122

123

125

126

130

133

134

135

139

141

142

147

19

20

20

25

29

32

33

34

37

38

38

41

41

42

47

47

48

50

50

52

54

55

56

61

MESSAGE FROM THE CHAIRMANFrancisco Montoro AlemánChairman - CEO

MESSAGE FROM THE CHAIRMAN ANNUAL REPORT 2019

6 7

Dear shareholders, clients and collaborators,

It is a pleasure to be addressing you for another year, on

this occasion, to share the highlights of Gmp’s business

in 2019 and its outlook for the future.

In the current context of the health crisis generated by

the global coronavirus pandemic, my first message is to

wish you well or a speedy recovery, if you or your loved

ones are affected by COVID-19. Later, I will refer to the

potential impact of this crisis on Gmp.

Last year was a milestone in the history of the Company,

as we celebrated our 40th anniversary. It fills all of us at

Gmp with pride and satisfaction to celebrate 40 years

of business operations and, for this reason, I would like

to express our appreciation for the founder of the Com-

pany, Francisco Montoro Muñoz. His pioneering focus

at the end of the 1970s on property-owning real estate

business, specialising in the office segment and centred

on delivering quality and customer service, set us firmly

on the course we have followed up to the present day.

In recent years, many other companies have adopted

the REIT regime, with a property-owning business model

too, but in Spain back in the early 1980s, this vision was

disruptive and laid the foundations for Gmp to become

one of the leading real estate companies in Spain in the

office sector.

2019 has been another positive year for our Company,

with a consolidated net profit that almost reached

€200m, 7% above the figure for 2018.

"2019 was a milestone in Gmp’s history, as the Company celebrated its 40th anniversary. Our pioneering focus on a property-owning real es-tate model, specialising in the office segment and centred on delivering quality, has marked the course we have followed up to the present day."

"Gmp has started a new strategic plan for the period 2019-2023 that bets on sustainable management and differentiation in the market through our people-centred focus."

Income from the Company’s property owning business

accounted for 83% of the total, with a year-on-year in-

crease of 2%, up to €96.5 m. In parallel, EBITDA rose

to €62m, nearly 4% higher than in 2018. These results

are particularly positive given that income dropped du-

ring the year due to the sale of the Llano Castellano

51 and Barajas 1 buildings, combined with the termi-

nation of the Vodafone contract at the Castellana Nor-

te business park. This fall in turnover has been offset

by intense commercial activity over the financial year,

which has achieved high levels of renewals and new

rental contracts covering 57,000 m² and 34,500 m²

respectively. This has enabled us to close 2019 with an

occupancy rate of 97% and average expiry date for lea-

sing contracts of 4.2 years. Among the new operations,

commercialising the 19,300 m² at the iconic building

Castellana 81 should be highlighted, which finished the

year with only 7% of the surface area available, and the

culmination of the commercialisation of Oxxeo, Gmp’s

latest development at Las Tablas, which reached 100%

occupancy and has garnered a number of awards for its

innovative architectural concept.

Despite the favourable evolution of the Company’s core

business, the Group’s revenues and EBITDA recorded

year-on-year decreases of 7% and 10%, down to €116m

and €65m respectively. This is due to the impact of the

residential tourism development located to the south of

Alicante, where income and EBITDA fell from record

highs of €29m and €13m in 2018, to €18m and €4m

in 2019.

The key reasons for this drop was the slowdown in the

administrative procedures for properties on sale and the

delay for a deferred payment on land operations with

developers, which has materialised in 2020. Added to

this, the adverse weather conditions at different points of

the year, particularly in September when the area was hit

by a devastating storm, leading to the closure of the golf

course, had a negative impact on results for the course

and also for restaurant and accommodation business at

the resort. It should be highlighted that Las Colinas Golf

& Country Club won international recognition in 2019, in

both the World Travel Awards and the European Property

Awards.

After successfully completing our 2014-2018 strategic

plan, Gmp has started rolling out a new plan for the pe-

riod 2019-2023. It aims to strengthen competitiveness

of the Company as a leading property-owning real esta-

te player in the high-end office sector in Madrid, betting

on sustainable management based on optimisation of its

portfolio and its capital structure, together with differen-

tiation in the market through our people-centred focus.

As regards optimisation of the portfolio, the plan encom-

passes an ambitious CAPEX programme, rotation of ma-

ture or non-strategic assets and selective investment in

value added buildings and developments.

The CAPEX programme began to be implemented in

2019, with actions dedicated to improving accessibility,

facilities and energy efficiency at our buildings, as well

as equipping them with valued added services and spa-

ces for clients.

As regards asset turnover, added to the sale in 2019 of

the Llano Castellano 51 and Barajas 1 buildings, at the

beginning of 2020 Castellana Norte, the first business

park in Las Tablas, developed by Gmp nearly 20 years

ago, was sold. These transactions have given the Com-

pany a comfortable position in terms of liquidity in order

to make new investments, although caution is required

as the cycle is potentially approaching a valuation peak

and, therefore, is close to a potential revision. For this

reason, in 2019 we have been actively looking for va-

MESSAGE FROM THE CHAIRMAN ANNUAL REPORT 2019

8 9

lue added buildings, with a reasonable price per m² that

could perform well under value added management. The

shortage of this type of product at the right price, yield

contraction and investor appetite in the market, have led

the Company to maintain our position on liquidity rather

than making acquisitions of expensive assets with a low

margin. Investment in new developments over the year

has been channelled towards ARQBÓREA, an office

building on one of the Company’s historic plots of land

in Las Tablas, which is expected to be completed in the

final quarter of 2020. Its modern, sustainable and intelli-

gent design highlights usability, flexibility and comfort for

users, in a healthy atmosphere.

Optimisation of Gmp’s capital structure has followed the

same path as the previous two financial years, with im-

proved financing conditions. After renegotiating in 2018

one of the tranches of the syndicated loan, in December

last year the Company renegotiated the majority tranche,

reducing its cost, extending the repayment period and

increasing coverage at fixed rate. At the close of the fi-

nancial year, the Group’s net debt amounted to €789m,

€23m below the figure for 2018, out of which 80% is

at fixed rate, with an average repayment period of 5.8

years and average cost of 1.52%. At the same time, the

valuation of the portfolio increased by nearly €100m, up

to €2.300 billion and LTV decreased from 38.4% in 2018

to 34.7% in 2019. All this, coupled with good liquidity,

places Gmp in a very solid financial position.

As regards the second key aspect of our strategic plan,

namely our bet on differentiation, the goal is to stren-

gthen client attraction and retention. In this respect, the

plan moves away from a traditional vision that identifies

clients as tenant companies towards a new focus that

places the emphasis on people and appeals to end users

of the buildings. In 2019, Gmp set up Innovation and De-

velopment Management to head up two new areas of the

Company: the development of New Products and Client

Experience. Both work hand in hand to roll out products

and services that improve the experience of people at our

buildings and address new market trends. The stand-out

actions for 2019 include the launch of a client experien-

ce plan under the new brand Gmp Experience which

optimises the customer journey; consolidation of the

Gmp Smart app, a pioneering tool in the sector that

gives visibility to clients and generates closer interrela-

tions among end users, as well as between end users

and Gmp; and the project to make buildings smarter by

equipping spaces with technological functionalities that

add value for people.

Finally, the new Strategic Plan reinforces Gmp’s firm

commitment to sustainability. It encompasses a speci-

fic Corporate Social Responsibility Plan for the period

2019-2023, aimed at meeting the Sustainable Develo-

pment Goals (SDGs) promoted by the United Nations.

Implementation of the plan has led to several important

advances, such as converting the majority tranche of

the syndicated loan renegotiated at the end of 2019

to a green loan in January 2020, which serves an en-

dorsement of the environmental sustainability of the

Company’s buildings. In the area of social action, the

Gmp Foundation took part in 24 social projects over the

year, directly benefiting around 9,000 people, double

the number benefited in 2018. Since its inception just

over a decade ago, the Foundation has helped appro-

ximately 50,000 people and donated €3.5 m to good

causes. In addition, our pioneering focus on the health

and wellbeing of people initiated in 2017, through

WELL Building Standard certification at Castellana 81,

Castellana 77 and Oxxeo, has been extended in 2019

to other buildings, where certification is currently un-

derway.

Our bet on the health and wellbeing of people is particu-

larly relevant in the new context of the global COVID-19

health crisis. In this regard, we have approved a special

CAPEX budgetary allocation to combat the spread of the

virus at our offices and at Las Colinas Golf & Country

Club, which has started to materialise in the immediate

form of a comprehensive action plan against the disea-

se. In addition, our human team has been working from

home since the start of the pandemic and we have dona-

ted funds to healthcare institutions in the Madrid Region

to help provide medical supplies to hospitals and health

centres. On the other hand, the Gmp Foundation is in

direct contact with the organisations that care for people

with Down Syndrome and Acquired Brain Injury, com-

piling their demands and adapting support to the new

needs of these groups.

We will continue acting with responsibility and diligen-

ce in this area, concentrating on the health and safety

of our stakeholders in order to get through this extreme

situation.

As regards the outlook for the future, forecasts from in-

ternational organisations indicate that the health crisis

will have a strong impact on the economies of all the

countries affected, which is already being felt. The dura-

tion of the pandemic and the stimulus measures that go-

vernments adopt are going to prove decisive. At present,

there are many unknown factors about the behaviour of

the virus and the time framework for the development of

effective treatments and vaccine. Given this uncertainty,

it is essential that companies are able to adapt in order

to take the appropriate decisions that enable us to meet

these new challenges.

A preliminary assessment of the potential impact of this

crisis for Gmp enables us to send out a message of con-

fidence. On the one hand, this situation has occurred at

a point when the office market in Madrid is strong, as

we closed 2019 with the highest number of contracts in

a decade and a vacancy rate of just 9%, in a context of

growing rents. On the other, the comfortable situation in

terms of liquidity of Gmp, its financial and property-ow-

ning solvency, quality and facilities at our buildings which

mostly have full occupancy, as well as the solvency of

our clients, combined with the average duration of rental

contracts, place us in a very strong position to ride out

this crisis. Further to this, Gmp is backed by the profes-

sionalism, engagement and commitment of our human

team and the watchful eye of the Board of Directors in

order to deal successfully with any impacts that could

arise.

I am convinced that, despite the difficulty and exceptio-

nal nature of the problems that we face, collective effort

and solidarity of governments, institutions, companies

the scientific community and society as a whole, will

enable us to get through this successfully and make us

stronger, equipped with new skills to address the cha-

llenges that the future holds for us.

On behalf of Gmp, I would like to end with a message of

gratitude and admiration to all the people that are on the

frontline of the fight against COVID-19, thanking them

for their dedication and professionalism.

My thanks to everyone for the support and contribution

you give to ensure the growth and solid position of Gmp.

Francisco Montoro Alemán

Chairman - CEO

"Gmp’s firm commitment to sus-tainability encompasses a speci-fic CSR plan for the period 2019-2023, aimed at meeting the United Nations SDGs."

"Gmp’s comfortable situation in terms of liquidity, our financial and property-owning solvency and the quality of our buildings and clients, place us in a very strong position."

KEY ASPECTS OF 20191.1. Milestones

1.2. Key data

1

ARQBÓREA

2019

– Sale of Llano Castellano 51 building.

JANUARY

– Castellana 81 building awarded the prize "The Architecture Masterprize" in the category Architectural Design - Restoration & Renovation.

SEPTEMBER

AUGUST

NOVEMBER DECEMBER

OCTOBER

JULY

APRIL

– Honourable mention for Gmp as the company that best leads the way towards sustainable business at the Madrid Family Business Association (ADEFAM) Awards.

– Launch of a plan to eliminate use of plastic at

MEETING PLACE spaces.

JUNE

– Celebration of Gmp’s 40th anniversary.

– Las Colinas Golf & Country Club named “Europe’s Leading Villa Resort” and “Spain’s Leading Villa Resort” in the World Travel Awards 2019.

– Oxxeo building named “Best New Construction Office Building 2018” in the AEO Awards.

– Opening of Las Colinas Sports & Health Club, a new space for leisure and sports facilities.

– 86% occupancy at the Castellana 81 building.

– Acquisition of the commercial space Luchana 23.

FEBRUARY

– Workplace 2019 Award for Gmp as the first real estate company in Spain to bet on the health and wellbeing of people through WELL certification for its buildings. Awarded by Cesine and Metros2.

– "Special Mention in Architecture" for Castellana 77 building in the 2019 German Design Awards.

– AENOR Audit of the Integrated Management System for Quality, Environment and Health and Safety.

MAY

– Oxxeo building named “Best Non-Residential Property Build” in the ASPRIMA-SIMA Awards.

– Renewal of the leasing contract for 10,725 m² with Adif in the Titán 4 building.

– WELL Gold Certification in the category Core & Shell for the Castellana 77 building.

– Renewal of the leasing contract for 5,000 m² with IQVIA/IMS in the Condesa de Venadito 1 building.

– 100% occupancy for the Oxxeo building.

– 93% occupancy for the Castellana 81 building.

– Renegotiation of the mortgage tranche of the syndicated loan, €525m, repayment period extended from June 2023 to December 2026, reduction of margin and increased cover at fixed rate.

MARCH

– Sale of Barajas 1 building.

– LEED Platinum certification in the Core & Shell category for the Castellana 77 building.

– Launch of new 2019-2023 strategic plan, focused on Optimising & Differentiating.

– Las Colinas Golf & Country Club named “Best Residential Development in Spain” in the European Property Awards 2019-2020.

– ARQBÓREA building starts commercialisation.

– Recognition for Gmp with the “EPRA Best Practices

Gold Award” and named "Most improved Annual Report”, rewarding the excellence and transparency of its financial communication.

– Recognition for Gmp with “sBRP Best Practices Bronze Award”, rewarding the excellence and transparency of its communication in the area of sustainability.

1.1. Milestones

1 2 1 3

KEY ASPECTS OF 2019 ANNUAL REPORT 2019

€m 2018A 2019A

OPERATING

Occupancy rate at year end 90.1% 97.1%

Average rental (€/m2) 18.0 19.3

INCOME STATEMENT ITEMS

Total revenues 124.7 116.0

EBITDA 72.9 65.3

Net profit 186.8 199.5

BALANCE SHEET STATEMENT ITEMS

GAV 2,192 2,283

Net debt 812 789

Cost of debt at year end 1.75% 1.52%

LTV (1) 38.4% 34.7%

ICR 4.50x 4.25x

EPRA RATIOS

EPRA Earnings 58.9 60.9

EPRA NAV 1,355 1,511

EPRA NNNAV 1,265 1,413

EPRA Net Initial Yield (NIY) 3.3% 3.7%

EPRA “topped-up” NIY 3.5% 3.7%

EPRA vacancy rate 11.0% 2.8%

EPRA cost ratio (including vacancy costs) 25.6% 23.4%

EPRA cost ratio (excluding vacancy costs) 22.8% 22.7%

(1) 2018A, adjusted due to the payment pending on the acquisition of Manuel Cortina 2.

Eloy Gonzalo 10

1.2. Key data

Hall Iberia Mart I

KEY ASPECTS OF 2019 ANNUAL REPORT 2019

THECOMPANY

2

Luchana 23

2.1. Mission, vision and core values

2.2. Business areas: strategy and

business model

2.2.1. Core business: property-owning

business

2.2.2. Other businesses: residential

tourism development


2.4. Company structure

2.5. Shareholders



2.6.2. Consultative committees


2.7. Ethics and compliance

2.7.1. Ethics at Gmp


To be the benchmark property-owning office developer

and investor in Spain through the ability to attract and

retain clients, anticipate market trends, optimise value

and provide liquidity.

– Excellence.

– Client-led.

– Responsibility in its social, environmental and

corporate dimensions.

– Innovation.

– Commitment.

– Efficiency.

Gmp’s mission, vision and core values focus on meeting the

Company’s strategic objectives and consolidating its position

as a leader in the property market.

Property-owning developer and investor in premium

offices in Spain, which delivers high levels of satisfac-

tion to clients and partners through sustainable busi-

ness management.

Mission

Vision

Strategic Values

Castellana 81 and 77

1 9

THE COMPANY

2.1. Mission, Vision and Strategic Values

ANNUAL REPORT 2019

Gmp’s investment activity includes land and existing

buildings. Over the years, Gmp has known how to identify

and position itself in advance in the business expansion

areas in Madrid that have the greatest potential. From

the 1980s, it gradually began to acquire strategic land

plots for future third-party developments in north Madrid,

which the Company has managed from the outset and

where three business parks have been developed, cove-

ring a total area of 183,188 m².

As outlined in the following section, in 2018 Gmp com-

pleted construction on the Oxxeo building and started

development on the ARQBÓREA building, both on land

classified for urban development in Las Tablas. Work on

ARQBÓREA is expected to be completed by the end of

2020.

It currently holds and manages its own land portfo-

lio in Valdebebas, Las Rozas and Las Tablas, covering

a buildable area for new office projects of 50,928 m².

Moreover, its experience and in-depth knowledge of the

segment it operates in enables it to identify and leverage

investment opportunities that complement its portfolio of

owned assets, offer suitable profit margins, become fu-

ture proof and deliver added value through specialised

management.

Gmp’s investment activity is combined with rotating ma-

ture or non-strategic assets in order to improve efficiency

and quality in its portfolio through new investments or

developments. In 2019, the Company sold the properties

Llano Castellano 51 and Barajas 1, in January and March

2019 respectively.

Gmp’s business model concentrates on the following:

– Clear property-owning focus. Specialisation in the

high-end office and business park segment in Madrid.

– Active management of its assets.

In addition, and on an occasional basis, it operates in the

residential tourism sector through the resort it owns in

southern Alicante.

Gmp stands out for the vertical integration of its property-

owning business model with a 360˚ focus. This is possible

thanks to its strong track record in terms of investment,

technical and management capabilities.

2.2.1. Core business: property-owning business

Investment capacity: acquisition, rotation and land management

MANAGEMENT CAPACITY INVESTMENT CAPACITY

TECHNICAL CAPACITY

1 - Adquisition 2 - Rotation 3 - Land Management

4 - Renovation5 - Development

6 - Asset Management7 - Commercialisation Property-owning

Business model

specialised in high-end

offices and business

parks.

2 0

2.2. Business areas: strategy and business model

Oxxeo

THE COMPANY ANNUAL REPORT 2019

Technical capacity: renovation and development

The asset management of all buildings owned by Gmp

is carried out by a highly committed and customer-led

team of professionals. The commercial team focuses

on fostering customer loyalty, both by renewing rental

contracts and promoting vacant space. In 2019 Gmp

renewed contracts for 57,492 m² and signed 37 new lea-

ses for 34,652 m² of office space.

The following operations stand out this financial year:

– Commercialisation of 4,534 m2 in Oxxeo, signing lea-

sing contracts with PFS, Cegos and Lenovo. This led to

100% occupancy of the building.

– Commercialisation of 19,300 m2 at Castellana 81

to Zurich, Grant Thornton, Trip Advisor, BFF, ORACLE,

Spaces, Duff & Phelps and MorningStar. This represents

over 93% occupancy of the building.

– Renovation of 6,700 m2 at Condesa de Venadito 1,

which maintained 100% occupancy of the building.

– Renovation of 10,725 m2 in Titán 4 for Adif.

The Head of Client Management, together with his team,

play a key role in solving any incidents efficiently and

anticipating client needs. All buildings managed by Gmp

feature a Property Manager and on-site Facility Manager

in the building.

Aligned with its customer-led focus, Gmp provides a full

design service to fit out office spaces for tenants through

IN-PLANIA. This service prioritises optimisation of space,

the comfort of occupants and environmental sustainabi-

lity.

As part of its excellence of service, in 2019, the Company

created the role of Head of Client Experience to promote

active listening of clients’ voices and the generation of

memorable experiences, which optimise the customer

journey and create a bond of trust between the end user

and Gmp.

Gmp conducts annual satisfaction surveys on all its

clients. The overall results obtained have displayed a high

level of satisfaction, year after year, as tenants view Gmp

as a company that is serious, professional, responsible

and committed to continuous improvement. In 2019, the

rating from these surveys was 4.1 out of 5.

Its customer- driven approach to management, positions

Gmp as one of the property-owning real estate groups

with the highest levels of customer retention, occupancy

and satisfaction in the market. Gmp is the only property-

owning real estate group in Spain with an integrated ma-

nagement system for Quality, Environment and Health

and Safety in the Workplace certified by International

Standards ISO 9001, 140001 and OSHAS 18001.

Gmp is one of the pioneering and most experienced

developer groups in Spain in office and business park

development and renovation. Its technical capability

enables it to play an active role in each of the projects

it undertakes right from the start, enabling it to ensu-

re the highest quality standards are applied, minimise

any risks associated with costs and deadlines, gua-

rantee the optimisation of the end product in order to

meet market demands and therefore secure commer-

cial success. Gmp has experience in promoting both

turnkey projects to set up new company headquarters,

buildings and multi-client business parks.

The group’s activity includes new developments on

land acquired and managed by Gmp specifically for

such purpose, as well as the full renovation of exis-

Management capacity: asset management and commercialisation

97% 57,492 sq m 34,652 sq m 4.1 out of 5

Occupancy at close of 2019

Surface area renewed in 2019

Surface area leased in 2019

Customer satisfaction rating in 2019

0 0 2 3

Condesa de Venadito 1


ting buildings,mostly in consolidated prime areas. This

was the case in the renovations over recent years in

the Castellana 81, Castellana 77 or Manuel Cortina 2

buildings.

As regards new developments, in 2019, Gmp has

continued construction on ARQBÓREA, an office buil-

ding designed by the prestigious architecture studio

ORTIZ LEÓN on one of the plots of land classified for

urban development in Las Tablas. Covering an area of

15,790 m², distributed over five floors above ground

and 450 underground parking spaces, the building

aims to reach the highest standards in sustainability,

environment, accessibility and health and wellbeing of

its occupants. ARQBÓREA is expected to be comple-

ted by the end of 2020.

Apart from its core property-owning business in office

space, Gmp owns and manages a 330-hectare residen-

tial tourist development near the coast, south of Alicante:

Las Colinas Golf & Country Club.

It comprises bespoke villas, apartments and plots of land

for sale, as well as an extensive sports and leisure ame-

nities and a range of accommodation and restaurants.

The18-hole championship golf course and private beach

club on the seafront are highlights of the resort. It ope-

rates through three companies owned by Gmp: Colinas

Golf Residencial SL, Colinas Green Golf SL and Campoa-

mor Sun & Beach SL.

Colinas Golf Residencial SL owns the residential land

at the Golf & Country Club. Its core business consists

of selling land to other developers, as well as promoting

properties for sale to end users. It plays the role of Master

Developer ensuring the various residential projects com-

ply with the highest quality and design standards of the

resort, through the application of a strict approval proce-

dure prior to construction.

In 2016, in response to growing demand from European

clients, it intensified its development business through

a joint venture, with a view to the development and sale

of apartments. In 2019, the apartments were delivered

from Phase 1 of the Hinojo Community and the joint ven-

ture started its first villa development on the AUR-A plot

of land.

The total number of properties sold at Las Colinas Golf

& Country Club in 2019, by Colinas Golf Residencial SL

and other developers who own the land was 89 units:

42 villas and 47 apartments. Out of the total of 1,634

properties planned to be developed at Las Colinas Golf

& Country Club, 508 had been sold and delivered by the

end of the financial year, 81 had been sold and were at

various stages of completion and 498 were being develo-

ped and commercialised.

The master plan for Las Colinas Golf & Country Club in-

cludes three plots for commercial use in different loca-

tions. These plots are owned by Colinas Golf Residencial

SL.

Colinas Green Golf SL is the company that owns the golf

course, as well as the club house amenities and the im-

mediate surroundings. The course, designed by Cabell

B. Robinson, is one of the best in Continental Europe

according to the ranking published by the reputed Bri-

tish magazine Golf World. The world leader Troon Golf is

involved in the management of the course. It operates a

pay & play system, with a limited number of renewable

annual memberships available. In 2019, the golf cour-

se chalked up almost 40,600 rounds, with much higher

green fees than the average fees in the surrounding area.

Finally, Campoamor Sun & Beach SL owns the hotel

plot of the Golf & Country Club, which is not developed

yet, and the beach club located in Campoamor, on the

seafront at La Glea beach, around 10 kilometres from

Las Colinas. Moreover, it manages the existing accom-

modation offer, Las Colinas Residences, which consists

of a selection of exclusive apartments and villas. These

homes are fully equipped, and guests can benefit from a

broad range of services and mixed accommodation and

golf packages.

In July 2019, Las Colinas Sports & Health Club, a new

space formed by a wellness area, gym, changing rooms,

outdoor swimming pool and a Racquet Club with two

paddle tennis courts, three tennis courts and a multi-

sport court.

In December 2019, building work on the italian restau-

rant il Palco was completed and it opened in January

2020. The gastronomic offer at il Palco complements

the culinary propositions that Las Colinas Golf & Country

Club provides, as it already serves international cuisine

at UNiK CAFÉ and the japanese restaurant enso sushi-

bar.

2.2.2. Other business: residential tourism development


2 5

Las Colinas Golf & Country Club

Plots and uses

1

2

3

4

5

6

7

8

9

11

13

14

15

10

12

Hotel use

Sports use

Commercial use

Land for public use

Residential use

Built and deliveredUnder development

Land sold

Land at Las Colinas Golf & Country Club

Under developmentFuture development

Masterplan of Las Colinas Golf & Country Club

1 Mediterranean woodland

2 Practice area

3 Mini Market

4 Clubhouse

5 Las Colinas Sports & Health Club

6 il Palco restaurant

7 Meeting centre

8 Sports courts and gym

9 Canyon entrance to Las Colinas

10 Nature trail

11Las Colinas Short Game Facility designed by Miguel Ángel Jiménez

12 Mediterranean riverbed

13 Nature reserve

14 18-hole championship golf course

15 Natural park

2 6


(1) Residential units.

OWNER COMPANY USE PLOT SURFACE sq m

BUILDABLE AREA sq m UNITS

THIRD PARTIES RESIDENTIAL 695,799 159,569 1,082

COLINAS GOLF RESIDENCIAL S.L.

RESIDENTIAL 316,679 72,697 552

COMMERCIAL 12,167 3,250 3 different commercial locations

328,846 95,947 552

CAMPOAMOR SUN & BEACH S.L.

HOTEL 50,401 25,000 300 rooms approximately.

COLINAS GREEN GOLF S.L.

GOLF 1,012,057 6,000

PUBLIC PROPERTYLAND CEDED PUBLIC USAGE 26,915 2,000

TOTAL URBAN DEVELOPMENT PLAN 2,114,018 288,516 1,634(1)


Since June 2016, Gmp holds a syndicated loan for

€755m with a pool of 14 banks, as of 31 December

2018, €710m were drawn.

In December 2019, the mortgage tranche was renego-

tiated, Tranche A, reducing the margin of 170 pbs to

130 pbs and extending the repayment period by 3 and a

half years up to December 2026.

After the aforementioned changes, the syndicated loan

comprises the following:

– Tranche A: €525m, with mortgage guarantee for

some of Gmp’s real estate assets and bullet repayment

in December 2026.

– Tranche B: €185m, without mortgage guarantee, bu-

llet repayment in July 2023.

– Tranche C: Credit line of €30m undrawn, without

mortgage guarantee and bullet repayment in July 2021.

This tranche is extendable annually, with prior approval

from the banks for up to 2 further years.

Apart from the syndicated loan, the Group has bilateral

loans drawn amounting to €173m.

In March 2019, €9.2m were drawn, pending from the

loan from Société Générale amounting to €38m to finan-

ce the building Manuel Cortina 2. The cost is 180 bps

and the loan expires in March 2025.

In addition, in the same month, the Company repaid the

loan from the Banco Santander for €16.9m after the sale

of the Barajas 1 building.

At the close of the financial year, the cost of financing

the Group was 1.52% and the average repayment pe-

riod, 5.8 years.

In financial year 2019, net debt was reduced by €23m in

comparison to 2018, standing at €789m.

2 9


Castellana 81

Key financial data

(1) 2018A, adjusted due to the payment pending on the acquisition of Manuel Cortina 2.


€m 2018A 2019A

AMOUNTS

Gross debt 871 883

Syndicated loan 710 710

Bilateral loans 161 173

Cash and equivalents (59) (94)

Net debt 812 789

Undrawn balance 30 30

COST

Cost of debt at closing (%) 1.75% 1.52%

% debt at fixed or covered rate 78% 80%

Recurring cost 16 13

MATURITY

Average maturity (years) 4.7 5.8

INDEBTEDNESS RATIO

LTV(1) 38.4% 34.7%

82%Syndicated loan

80%Syndicated loan

18% 20%Bilateral

loans Bilateral

loans

OthersSyndicated loan

Profile of repayment period for gross financial debt 2019 (€m)

2020 2021 2022 2023 2024 2025 >2026

2 3 4

5

77

536

257

72

11

525

185

Financing breakdown

Total gross debt 2019

Total gross debt 2018

€883m€871m

Lobby Iberia Mart I

3 0

– Castellana 81

– Iberia Mart I and II

– Alcalá 16

– Hermosilla 3

– Génova 27

– Goya 14

– Luchana 23

– Eloy Gonzalo 10

– Parque Norte

– Castellana Norte(1)

– Oxxeo

– Manuel Cortina 2

– ARQBÓREA

– Land bank

– Campoamor

(parking spaces)

PROPERTY-OWNING BUSINESS AFFILIATES

Engage Inversiones 2014 S.L. Castellana 77

100%

100%

100%

100%

50%

100% 100%

100%

100%

100%

100%

RESIDENTIAL TOURISM DEVELOPMENT OTHERS

Renta Apartamentos S.L. Condesa de Venadito 1

Gmp Nueva Residencial S.A. Land El Ejido

IN-PLANIA Espacios Eficientes S.L.

Renta Gestión Fuencarral S.L.

Colinas Green Golf S.L. Golf course

(Las Colinas Golf & Country Club)

Inmoaccess S.L. Titán 4

Campoamor Sun & Beach S.L. Beach Club Hotel plot of land

(Las Colinas Golf & Country Club)

Colinas Golf Residencial S.L. Land for residential and commercial use

(Las Colinas Golf & Country Club) Villas and Apartments for Sale

Apartamentos UMA S.L. Joint venture development

Edificio Velázquez 164 S.L. Parking space

PROPERTY-OWNING BUSINESS AFFILIATES

The company structure of the Group, shown in the fo-

llowing diagram, is built on the bases set by the governing

bodies of Gmp, adhering to the highest standards in Cor-

porate Governance.

Roles, duties and responsibilities need to be divided ap-

propriately among the governing bodies and company

management in order to integrate the different businesses

and companies in the Gmp Group properly. For this rea-

son, good corporate governance is an essential factor in

generating value, improving economic performance and

building the trust of shareholders and stakeholders.

Gmp’s governing structure of is based on two main bodies,

the shareholders and the company’s governance model.

2.4. Company structure 2.5. ShareholdersThe share capital of Gmp Property SOCIMI S.A. amounts

to 19,124,270 shares, with a nominal value of €0.492,

fully subscribed and paid. As of 31 December 2019, the

shareholding structure is as follows:

The company’s shares are listed on the Alternative Equity

Market (MaB) in the REIT segment since July 2016.

66.8% Montoro Alemán Family

32.9% GIC

0.3% Others

3 2

Gmp Property SOCIMI S.A.


(1)At the time of writing this report, this asset was no longer part of the Company’s portfolio.

Lobby Génova 27

Over the years, Gmp has adhered to the highest stan-

dards of Corporate Governance, which enables it to fulfil

its mission of being a property-owning developer and in-

vestor that delivers high levels of satisfaction to its clients,

partners and employees through sustainable business

management.

Good Corporate Governance seeks to increase transpa-

rency and control across all businesses and companies in

the Group. This entails adopting a series of principles and

regulations that govern the running and structure of the

Governing Bodies, as well as the relationship maintained

with the Company’s shareholders.

The regulatory framework set by the Gmp Group for the

proper governance of the company comprises the fo-

llowing:

– Company bylaws: internal regulations that govern the

company’s operations and its governing bodies, which

outline the main characteristics and guidelines of the

Shareholders’ General Meeting and Governing Bodies

– General Shareholders’ Meeting Regulations: guideli-

nes for holding the Shareholders’ Meeting. These regula-

tions guarantee the rights of shareholders and regulate all

aspects to ensure that the Meeting runs properly.

– Board and Commissions Regulations: establishing the

action principles for the Board of Directors.

The Board of Directors at Gmp has established an Au-

dit, Compliance and Sustainability Committee and an

Appointments and Renumeration Committee, which are

consultative in nature and presided over by independent

professionals.


EXECUTIVE COMMITTEEAUDIT COMMITTEEAPPOINTMENTS AND

REMUNERATION COMMITTEE

Francisco Montoro Chairman and CEO

Antonio MontoroVice president

Ricardo MontoroVice president

Xabier BarrondoBusiness General Manager

José Luis García de la CalleCorporate General Manager

Alberto Terol President (external)

Ignacio O´Dogherty Member (external)

Julio Díaz-Freijo Member (external)

Sebastién AbascalMember

Xabier Barrondo Business General Manager

José Luis García de la CalleCorporate General Manager

Juan García Head of Technical Property and IN-PLANIA

Antonio Gil Head of Legal

José Luis García de la Calle HR Director

Jorge CalvoCFO

Silvia Llanes Head of Innovation and Development

STEERING COMMITTEE

Diego Valiente Head of Property Assets

Francisco MontoroChairman and CEO

Antonio MontoroDeputy Chairman

Ricardo MontoroDeputy Chairman

Madeleine Cosgrave (Euro Lily Private Limited)Member

Sebastién Abascal (Euro Fairview Private Limited)Member

Fernando VaraMember

Rafael NebredaSecretary - Non Member

BOARD OF DIRECTORS

Fernando Vara President

Sebastién AbascalMember

Marta Montoro Member

Alberto TerolMember (external)

Castellana 81 Auditorium

3 4 3 5


The Company, in accordance with the Company Bylaws,

is governed and administered by the Board of Directors.

The Board Regulations state that this body has the bro-

adest responsibilities as regards the Company and, ex-

cept for matters reserved to the General Meeting, it is the

highest decision-taking body of the Company, which can

do and carry out anything that is comprised within the

company objective.

The Board Regulations state that efforts will be made to

ensure that the board members elected are persons of

recognised solvency, competency and experience. Direc-

tors will be appointed by the General Meeting or by the

Board, pursuant to the provisions set down in Royal Le-

gislative Decree 1/2010, 2 July, whereby the consolidated

text of the Companies Capital Act is approved and in the

Company Bylaws.

Board members will hold their posts for a period of six

years and can be re-elected one or more than one times

for periods of the same duration, except independent di-

rectors who can only be re-elected as independent direc-

tors for two consecutive mandates.

The Company’s Board of Directors comprises directors,

three of which are executive representatives of the Mon-

toro Alemán family, two are proprietary directors from the

Singapore GIC Sovereign Wealth Fund and an indepen-

dent director. In addition, the secretary to the Board does

not hold the post of director and is elected by the Board

of Directors.

In 2019, the Gmp Board has met four times with a repre-

sentation of 14% of women and 28% foreign directors.


NAME POST COMMITTEES

Francisco Montoro Chairman and CEO Executive Committee

Fernando Vara Member Appointments and Renumeration Committee

Antonio Montoro Vice president and Member

Ricardo Montoro Vice president

Madeleine Cosgrave Member

Sebastién Abascal MemberAudit Committee

Appointments and Remuneration Committee


3 7

Génova 27

At Gmp there are two permanent internal bodies of a con-

sultative nature attached to the Board of Directors, which

hold information, consultancy and proposal powers in their

remit.

Audit, Compliance and Sustainability Committee

The Audit Committee is composed by four members, all of

whom are independent, and the Chair is an external expert.

This body performs any functions relating to supervising the

efficacy of internal control of Gmp, internal auditing activi-

ty, risk management systems, financial-economic reporting

and auditing of accounts in the terms established under

Gmp’s Regulations and Bylaws.

In addition, since 2019, it has acquired the function of su-

pervising and monitoring compliance of Gmp’s CSR strate-

gy. In this regard, during 2019 the Committee has met on

two occasions.

Appointments and Remuneration Committee

The Appointments and Remuneration Committee is chaired

by an independent director and comprises two executive

directors appointed by the Board of Directors and an ex-

ternal expert. It performs functions relating to the selection,

appointment, remuneration, re-election and cessation of

directors and executive posts at the Company.

In this regard, during 2019 the Committee has met on two

occasions.

Risk Committee

Gmp has set up a Risk Committee to serve as a control body

for the Company.

This is a control and monitoring body, equipped with ini-

tiative and sufficient control capacity, which is responsible

for supervising and monitoring Gmp’s criminal risk mana-

gement system.

Moreover, this is the body to which the Board of Directors

has delegated competences relating to the supervision of

internal control and risk management, with the aim of iden-

tifying, managing and ensuring that key risks are maintai-

ned at the approved levels.

The Risk Committee comprises directors from corporate

areas and meets every two months, at least, to monitor the

risk management systems that are under its supervision.

Gmp has a management team formed by professionals with

extensive experience and in-depth knowledge of the real

estate market.

The Company management by this group of experts is led

by the Executive Committee and Steering Committee. Both

bodies aim to project Gmp towards the future by taking fe-

asible and sustainable decisions in the short, medium and

long term.

Executive Committee

The Executive Committee shares all the competences of the

Board, except those which cannot be delegated thereto le-

gally or statutorily, as stated in the Board Regulations. The

Committee comprises five members, out of which three are

directors.

The Executive Committee oversees decisions agreed at the

Board of Directors and the General Shareholders Meeting.

It meets whenever deemed necessary by the Chair in order

to exercise its competences.

Steering Committee

The Steering Committee is allocated the task of monitoring

business affairs, as well as the most important issues raised

by the Executive Committee. It meets monthly to carry out

its functions.

2.6.2 Consultative committees


Hermosilla 3

3 8

2.7 Ethics and compliance2.7.1. Ethics at Gmp

Gmp’s prime objective is delivering quality in service pro-

vision, maintaining a firm and ongoing commitment to the

wellbeing and development of its staff and society as a

whole. The Company believes it is essential to be commit-

ted to business ethics principles and transparency in all

areas of its operations.

Aligned with this, Gmp’s activities are developed necessa-

rily within the framework of the Code of Conduct, which

establishes the conduct guidelines to be observed by all

employees and managers of the Group, in their professio-

nal activity and in their relations with customers, suppliers

and other stakeholders.

The principles developed in Gmp’s Code of Conduct are

as follows:

–Compliance with legislation.

– Social conduct.

– Integrity and transparency.

– Respect for institutions, individuals and markets.

– Health and safety in the workplace.

– Commitment to society.

– Excellence and best practice in the workplace.

With the aim of disseminating the Code of Conduct pro-

perly following its approval, Gmp ran training actions for

all employees in 2017. Moreover, since then, the Code of

Conduct is available on Gmp’s website and intranet, as

well as forming part of the “welcome pack” for all new

employees.

In addition, Gmp has internal conduct regulations which

aim to establish the principles of action as regards:

– (a) Shares issued by the Company that are negotiated

in a regulated market, multilateral negotiation system or

organised contracting system.

– (b) Financial instruments and contracts of any type

that grant the right to purchase or subscribe to shares

mentioned above in (a).

– (c) Financial instruments and contracts of any type the

underlying assets of which are shares included in para-

graph (a) above.

It is worth highlighting that, in 2019, Gmp has started up-

dating Internal Conduct Regulations to improve and faci-

litate compliance with the rules and regulations in force.

Reporting Channel

Gmp employees must report any instances of non-com-

pliance of the Code of Conduct or any infractions that they

either have knowledge of or suspect. They must also have

the opportunity to consult on any ethical issues.

In order to facilitate this, Gmp has a dedicated reporting

channel on its website that enables employees and third

parties with which it maintains business relations to com-

municate any queries or potential breaches of the Code of

Conduct in a confidential manner.

Any information regarding failure to comply with the Code

of Conduct or infractions will be handled in a confidential

manner and the company guarantees that no retaliation

will be taken against any individual who makes a report

acting in good faith.

The Risk Committee oversees the dissemination, upda-

ting and compliance of the Code and the management of

the reporting channel, whose members are appointed by

the Board of Directors.

During 2019, no breaches of the Code have been repor-

ted through Gmp’s dedicated channel.

Luchana 23 - Gmp headquarters

4 1


LA COMPAÑÍA INFORME ANUAL 2019


The Gmp Group implements a Risk Management System

that aims to prevent and mitigate the risks of regulatory

compliance, including those of a criminal nature. The

priorities of this System are preventing any unlawful act

within the Gmp Group, particularly corruption, fraud and

money laundering, as well as avoiding conflicts of inter-

ests and protecting client privacy.

The Compliance System is based on the Code of Conduct,

the Reporting Channel, the Risk Committee, the Com-

pliance Manual and any policies approved in any area of

compliance.

Prevention of corruption and fraud

Corruption and fraud slow down economic development,

weaken democracy and are detrimental to social justice

and the Rule of Law, causing serious harm to the eco-

nomy and society. The Gmp Group is strongly committed

to society and maintaining and promoting honest, trust-

worthy and transparent conduct on a daily basis and in all

operations at Gmp is essential in this regard.

Mindful of this commitment, in 2019 Gmp has approved a

Policy against Corruption and Fraud which condemns any

conduct that could be deemed to be an act of bribery or

corruption, both in a public or private sphere, prohibiting

any type of corrupt conduct that could influence decision

taking by third parties either directly or indirectly.

This Policy is applied to all board directors, managers

and employees from the companies in the Group, regard-

less of their geographic location and period their role or

functions are effective. Moreover, any person who colla-

borates, participates or mediates in the operations and

businesses of the Group must observe the guidelines and

principles set down in this Policy.

During 2019, all employees have been informed of the

approval of the new Policy against Corruption and Fraud.

This Policy also strengthens the Prevention of Money

Laundering System, implemented by the Group more

than ten years ago, and which aims to maintain the or-

ganisational structure, policies and internal control proce-

dures needed to comply with any obligations established

in current legislation as regards Money Laundering and

Financing of Terrorism, as well as the commitments made

voluntarily by Gmp.

The Prevention Manual is the key document for this ma-

nagement system, which outlines the prevention policies

and procedures adopted and the organisational model,

thereby complying with existing regulations. Knowledge of

and compliance with the Prevention Manual on money

laundering is compulsory for all employees, agents and

managers of the Gmp Group.

It is worth highlighting that the Gmp Group is per se an

entity bound according to the regulations due to its deve-

lopment activity. However, it is the Group’s decision and

voluntary commitment to require that all its property-ow-

ning business pass previously the prevention of money

laundering processes.

The specific policy for accepting clients requires com-

pliance with a series of criteria such as not appearing

on lists of fined persons or implement a framework that

mitigates potential risks, and is applied to all the buying

and selling operations for property; and all the leasing

operations for properties that charge an annual fee above

€50,000.

This system is audited every year by an accredited third

party and said report is submitted to the Spanish Finan-

cial Intelligence Unit (SEPBLAC). All recommendations in

the report are implemented gradually in a cycle of ongoing

improvement.

During 2019, no act of corruption or linked to the same

via the channels available in the Gmp Group has been

identified.

Conflicts of interests

Commercial decisions and actions must be channelled

towards the lawful profit of the Gmp Group and must not

be motivated by personal considerations or relations or

private interest of any kind. Management of conflicts of

interest is provided for under article 21 of the Company

Bylaws and in its Code of Conduct, where Gmp stipula-

tes that situations that could lead to a conflict of inter-

ests should be avoided. Moreover, there is an obligation

to communicate the existence of any potential conflicts of

interest, whenever there is knowledge of the same, and

refrain from attending and taking part in any deliberations

and votes that affect matters whenever there is a personal

interest.

There are several committees comprising professionals

that must be refereed in order to guarantee that no per-

sonal interest overrides the Company’s interest, the most

important of these being the Executive Committee. Mo-

reover, the Board of Directors Regulations regulate any

conflicts of interest that could affect directors.

Client privacy

The Gmp Group has a dedicated channel for all com-

plaints associated with client data protection and privacy,

supervised by the coordinator of regulatory compliance.

Clients can use electronic mail, by phone or in person at

an office.

Once the Gmp Group receives a request to exercise rights

relating to privacy, the identity of the person is confirmed,

and the request is processed providing a reply within a

month, completely free of charge.

Lobby Castellana 81

4 2 4 3

Castellana 81

3



3.1.2. Valuation of portfolio

3.2. Core business: property-owning business

3.2.1. Description of client portfolio

3.2.2. Occupancy

3.2.3. Average rental revenue

3.2.4. Projects/Investments

3.2.5. EPRA ratios


BUSINESS EVOLUTION OVER THE FINANCIAL YEAR


Over 2019, the Company turnover stood at €116.0m,

which is 7.4% up on that of the previous year when it

obtained €125.3 m euros. EBITDA over the financial year

was €65.3m, 10.4% above that of 2018, when it reached

€72.9m.

In the property-owning office business, turnover rose by

1.6% and EBITDA increased by 3.7%. These increases

principally stem from the fact that additional rental inco-

me generated at Castellana 81, Castellana 77 and Oxxeo

exceeded the reduction of income from the sale of the

buildings Llano Castellano 51 and Barajas 1, as well as

the termination of the Vodafone contract at Castellana

Norte, in June 2019.

As regards the other activities that complement the pro-

perty-owning portfolio:

– The residential business of Las Colinas Golf &

Country Club generated total revenues, including real es-

tate development, the golf course, accommodation bu-

siness and other business of €18.9m, which is a 37.3%

decrease on the previous year’s turnover of €29.1m. As

far as EBITDA is concerned, it dropped by 74.9%, decre-

asing from €12.6m to €3.2m. These are accounting figu-

res; the variations are best explained by the commercial

figures in section 3.3.

– IN-PLANIA, the office fit-out business maintained

its turnover almost stable, edging down from €1.287k to

€1.271k. The EBITDA dropped significantly from €465k

to €154k, as it carried out work with lower margins than

the previous year.

€`000 2018A 2019A %var.

TOTAL REVENUE 125,301 115,984 (7.4)%

Property-owning business 94,948 96,486 1.6%

Offices 71,602 70,711 (1.2)%

Car parks 6,020 6,911 14.8%

Other revenue 17,326 18,864 8.9%

Other businesses 30,353 19,498 (35.8)%

Las Colinas Golf & Country Club 29,067 18,226 (37.3)%

IN-PLANIA 1,287 1,271 (1.2)%

(-) Total operating costs (52,402) (50,635) (3.4)%

EBITDA 72,899 65,349 (10.4)%

Property-owning business 59,808 62,028 3.7%

Other businesses 13,091 3,321 (74.6)%

Las Colinas Golf & Country Club 12,625 3,167 (74.9)%

IN-PLANIA 465 154 (66.9)%

Evolution of revenue and EBITDA by business areas


4 7

Castellana 81 Auditorium

BUSINESS EVOLUTION OVER THE FINANCIAL YEAR ANNUAL REPORT 2019

3.1.2. Valuation of the portfolioThe valuation of the portfolio as at 31 December 2019,

carried out by an independent property valuer, amoun-

ted to €2,283m.

The table below shows the breakdown of the valuations

by type of asset in 2019 compared to 2018.

(1)Excluding developments, renovations, acquisitions and disinvestments. (2)Variation of the valuation of Las Colinas in €/m2t.

Evolution 2018-2019 of the GAV: breakdown by type of asset

€m 2018A 2019A %var.%var.

like-for-like

Office portfolio 2,072 2,167 4.5% 6.6% (1)

Land bank 44 44 -% -%

Las Colinas and others 73 73 -% 5.1%(2)

Total 2,189 2,283 4.3% 6.3%(1)

The figures for 2018 and 2019 are not fully comparable

hence the need to show a like-for-like comparison, which

indicates growth of 6.3%, as the following are excluded:

– Oxxeo and ARQBÓREA -land development-, as they

increase their value due to completion of work on the pro-

perties and, in the case of Oxxeo, delivery to tenants.

– Llano Castellano 51 and Barajas 1, as they are no

longer part of the portfolio, because they were sold at the

beginning of 2019, in January and March respectively.

– In addition, at Las Colinas Golf & Country Club,

although the absolute value dropped as plots of land were

sold in 2019, the comparable valuation in €/m²t rises by

5.1%.

The graph below shows a breakdown of the evolution of

the valuation.

Evolution 2018-2019 of the comparable GAV (€m)

94Total variation (increase)

GAV 2018A Like-for-like offices Office disinvestments (Barajas 1 and

Llano Castellano 51)

Land development (Oxxeo y ARQBÓREA)

GAV 2019A

29 2,283

2,189

128

(63)

4 8

Oxxeo

3.2. Core business: property-owning business3.2.1. Description of client portfolio

Gmp’s top 20 tenants

Gmp develops a property-owning business model based

on long-term leasing contracts with companies that have

a strong track record of financial solvency and operate in

a broad range of sectors.

Moreover, historically, it achieves high renewal figures as

a result of client satisfaction with the quality, services and

management of buildings they occupy.

As of 31 December 2019, more than 50% of the existing

rental contracts had an end date of above five years.

4%

24%

18%

7%

14%

9%

Pharma & Healthcare

Professional services

Telecom, ICT and Consultancy

Other services

Public administration

Legal

Breakdown of tenants by business sector (rental revenue)

13%

10%

19%

7%

51%Average expiry

Compulsory period: 3.5 years

Contracts: 4.2 years

7%Bank and insurance

2020 2021 2022 2023 >2024

14% Industry and Energy

Breakdown of rental contacts by year (% m² expired)

5 0 5 1


3.2.2. Occupancy2019 was a year of intense commercial activity, as

contracts for office space of 34,500 m² were signed.

Adding a further 16,000 m² which were signed pre-

viously and became effective in 2019 (Sabadell in

Castellana Norte), the total for incoming tenants rose

to 50,500 m². Outgoing tenants increased to approxi-

mately 30,000 m² but nearly 23,000 m² correspond

to the expiry of part of the Vodafone contract at Cas-

tellana Norte in June 2019. As a result of the above

and excluding the impact of Vodafone, there was a

positive net absorption of close to 43,500 m². Occu-

pancy increased from 90% to 97% over the last year.

Moreover, contracts for slightly over 57,000 m² were

renewed.

The graph below shows in detail the evolution of oc-

cupancy of Gmp’s office portfolio in 2019.

Occupied Vacant

December 2018 Right to leave Renovations New contracts Office disinvestments (Barajas 1 and

Llano Castellano 51)

December 2019

Occupancy rate

Occupancy rate

37

(87)

57

50(7)

(45)

339

314

9

90% 97%

The biggest movements were as follows

Evolution of occupancy of Gmp’s office portfolio in 2019 (000 m²)

Incoming tenants:

– At Castellana 81: Zurich Seguros, Oracle,

Duff & Phelps, Spaces and Morningstar.

– At Oxxeo: Lenovo, PFS and TEA Cegos.

– At Castellana Norte: Banco Sabadell

(contract signed in the past, which took

effect when Vodafone exited) and Gemini

Recoveries.

Renewals:

– At Parque Norte: General Mills and Westcon.

– At Titán 4: Adif.

– At Condesa de Venadito 1: IQVIA/IMS.

Outgoing tenants:

– At Iberia Mart: Altia and PFS

(transferred to Oxxeo).

– At Castellana Norte: Vodafone.

5 2 5 3


3.2.3. Average rents

Evolution of average rents by location (€/m2)

The average rent for financial year 2019 was 19.3 €/m²,

7.2% up on 2018. The breakdown of the evolution of ave-

rage rents is shown below according to the location of the

asset.

21,3

14,6

22,1

15,0

– Inside M-30 – Outside M-30

The breakdown of evolution of occupancy is shown

below according to the location of the asset.

– Inside M-30

87.4%93.2%

97.7% 96.0%

– Outside M-30

2018A

2018A 2018A

2018A2019A

2019A 2019A

2019A

3.2.4. Projects / Investments

ARQBÓREA

In October 2018, Gmp started work on this new office de-

velopment located in Las Tablas in north Madrid. The pro-

ject, which boasts a modern and sustainable design, was

created by the prestigious architecture studio ORTIZ LEÓN.

Its architectural features double skin with terraces and ve-

getation on the façades with greatest exposure to sunlight.

This efficient design feature protects the building from di-

rect sunlight and provides higher levels of comfort and well-

being for occupants.

At the close of 2019, work on the façade and installations

were at a very advanced stage and work had started on

applying the finishes. Construction on ARQBÓREA is ex-

pected to be completed by the end of 2020.

Evolution of the occupancy rate by location

5 4

ARQBÓREA


3.2.5. EPRA Ratios

Summary of EPRA data 2018-2019

1 EPRA Earnings & Earnings Per Share

Breakdown of the calculation of EPRA data 2018-2019

Gmp has been an associate member of EPRA since 2016,

when it adopted the association’s recommendations

on best practices in reporting. A breakdown of EPRA

Performance Measures is shown below.

2018A 2019A

INDICATOR BRIEF DESCRIPCIÓN €M /% €/ACCIÓN €M /% €/SHARE

1 EPRA Earnings Earnings from operating activities 58.9 3.1 60.9 3.2

2 EPRA NAV

Net Asset Value adjusted to include pro-perties and other investment interests at fair value and to exclude certain items not expected to crystallise in a long-term investment property business model

1,355 70.8 1,511 79.0

3 EPRA NNNAV EPRA NAV adjusted to include the fair values of (i) financial instruments, (ii) debt and (iii) deferred taxes

1,265 66.1 1,413 73.9

4 EPRA Net Initial Yield (NIY)

Annualised rental income based on the cash rents passing at the balance sheet date, less non-recoverable property ope-rating expenses, divided by the market value of the property, increased with (es-timated) purchasers’ costs

3.3% 3.7% -

4 EPRA “topped-up” NIY

This measure incorporates an ad-justment to the EPRA NIY in respect of the expiration of rent-free periods (or other unexpired lease incentivessuch as discounted rent periods and step rents)

3.5% 3.7% -

5 EPRA vacancy rate Percentage that reflects Estimated Mar-ket Rental Value (ERV) of vacant space divided by ERV of the whole portfolio

11.0% 2.8% -

6EPRA cost ratio (including vacancy costs)

Percentage that reflects administrative & operating costs divided by gross rental income

25.6% 23.4% -

6EPRA cost ratio (excluding vacancy costs)

EPRA cost ratio excluding administrative and operating costs associated with un-leased properties

22.8% 22.7% -

€m 2018A 2019A

Earnings per IFRS income statement 187 199

Adjustments to calculate EPRA Earnings, exclude:

(i) Changes in value of investment properties, development properties held for investment and other interests

(128) (138)

(ii) Profits or losses on disposal of investment properties, development proper-ties held for investment and other interests

- (0)

(iii) Profits or losses on sales of trading properties including impairment char-ges in respect of trading properties

- -

(iv) Tax on profits or losses on disposals - -

(v) Negative goodwill /goodwill impairment - -

(vi) Changes in fair value of financial instruments and associated close-out costs

- -

(vii) Acquisition costs on share deals and non-controlling joint venture interests

- -

(viii) Deferred tax in respect of EPRA adjustments - -

(ix) Adjustments (i) to (viii) above in respect of joint ventures (unless already included under proportional consolidation)

- -

(x) Non-controlling interests in respect of the above - -

EPRA Earnings 58.9 60.9

Shares 19,124 19,124

EPRA Earnings Per Share (EPS) (€/share) 3.08 3.18

Extrapolation EPRA Earnings 12 months.

5 6 5 7


€m 2018A 2019A

NAV per the financial statements 1,276 1,425

Effect of exercise of options, convertibles ad other equity interests (dilulted basis) - -

Diluted NAV, after the exercise of options, convertibles and other equity interests 1,276 1,425

Include:

(i.a) Revaluation of investment properties (if IAS 40 cost option is used) - -

(i.b) Revaluation of investment property under construction (IPUC) (if IAS 40 cost option is used)

- -

(i.c) Revaluation of other non-current investments - -

(ii) Revaluation of tenant leases held as finance leases - -

(iii) Revaluation of trading properties - -

Exclude:

(i.v) Fair value of financial instruments 4 10

(v.a.) Deferred tax 76 76

(v.b.) Goodwill as a result of deferred tax - -

Include / Exclude:

Adjustments (i) to (v) above in respect of joint venture interests - -

EPRA NAV 1,355 1,511

EPRA NAV per share 70.9 79.0

Shares 19,124 19,124

€m 2018A 2019A

EPRA NAV 1.355 1.511

Include:

(i) Fair value of financial instruments (4) (10)

(ii) Fair value of debt (11) (12)

(iii) Deferred tax (76) (76)

EPRA NNNAV 1.265 1.413

EPRA NNNAV per share 66,2 73,9

Share 19.124 19.124

€m 2018A 2019A

Investment property – wholly owned 2,010 2,040

Investment property – share of JVs/Funds - -

Trading property (including share of JVs) 66 127

Trading property (including share of JVs) (81) (110)

Completed property portfolio 1,994 1,994

Allowance for estimated purchasers’ costs 57 56

Gross up completed property portfolio valuation 2,051 2,113

Annualised cash passing rental income 70 79

Property outgoings (2) (1)

Annualised net rents 68 79

Add: notional rent expiration of rent free periods or other lease incentives 1 (1)

“Topped-up” net annualised rent 69 78

EPRA Net Initial Yield 3.3% 3.7%

EPRA “Topped-Up” Net Initial Yield 3.4% 3.7%

€m 2018A 2019A Var. %

Vacant space ERV 9 2 1%

ERV Portfolio 85 82 15%

EPRA Vacancy Rate Portfolio 11.0% 2.8% (8.2)

2 EPRA NAV (Net Asset Value) 4 EPRA Net initial Yield & Topped-up Net Initial Yield

5 EPRA Vacancy Rate

3 EPRA NNNAV (Triple Net Asset Value)

5 8 5 9



Key financial data on Las Colinas Golf & Country Club

Las Colinas Golf & Country Club has shown a negative

evolution over the year. Although, for the fifth year run-

ning, this business line generated positive EBITDA. After

recording an EBITDA of €13.1m in 2018, it has decrea-

sed to €3.9m in 2019 (accounting principles).

Residential property development is the main business,

which includes the sale of land and homes under de-

velopment. It is worth noting that the evolution outlined

below is presented from the point of view of sales and

commercial margins, while the income statement shown

at the beginning of this section follows accounting princi-

ples. The drop was 16.8% in sales revenues amounting

to €28.0m, and 30.8% in terms of sales margins, down

to €12.1m. The reasons behind this are the marked

slowdown in sales of key-in-hand villa projects whereas

the evolution of sales of plots of land to developers and of

apartments from the joint venture with Somium Premium

Properties has been positive.

As regards operations, this includes golf, restaurants and

accommodation, turnover has fallen by 2.2%, down to

€4.9m. As far as EBITDA is concerned, it dropped sig-

nificantly to €44k. The sharp decrease was principally

due to adverse meteorological conditions in the months

of April and September. Specifically, the cold drop that

hit the Levante coast in September, which had a major

impact on Las Colinas Golf & Country Club. It caused

serious damage to the golf course which had to stop play

for a number of days in the middle of high season and

many bookings were cancelled, affecting business sig-

nificantly. The EDITDA excludes the costs incurred by

extraordinary repairs.

Property development

Operations (golf, restaurant and accommodation)

2018A

2018A

2018A

2018A

2019A

2019A

2019A

2019A

33,693

5,059

17,545

271

28,042

4,947

12,143

44

– Sales revenues (€´000)

– Revenues (€´000)

– Sales margin (€´000)

– EBITDA (€´000)

€m 2018A 2019A

Include:

(i) Administrative/operating expense line per IFRS income statement 35 35

(ii) Net service charge costs/fees (15) (16)

(iii) Management fees less actual/estimated profit element - -

(iv) Other operating income/recharges intended to cover overhead expenses less any related profits - -

(v) Share of Joint Ventures expenses - -

Exclude (if part of the above):

(vi) Investment Property depreciation - -

(vii) Ground rent costs - -

(viii) Service charge costs recovered through rents but not separately invoiced - -

EPRA Costs (including direct vacancy costs) (A) 20 19

(ix) Direct vacancy costs (2) (1)

EPRA Costs (excluding direct vacancy costs) (B) 18 18

(x) Gross Rental Income less ground rent costs - per IFRS 79 81

(xi) Less: service fee and service charge costs components of Gross Rental Income (if relevant) - -

(xii) Add: share of Joint Ventures (Gross Rental Income less ground rent costs) - -

Gross Rental Income (C) 79 81

EPRA Cost Ratio (including direct vacancy costs) (A/C) 25.6% 23.4%

EPRA Cost Ratio (excluding direct vacancy costs) (B/C) 22.8% 22.7%

(1) Includes capitalised interest relating to projects, tenant incentives, letting fees and other capitalised expenses.

€m 2018A 2019A

Acquisitions - -

Developments 7 11

Like-for-Like portfolio 12 6

Other(1) 2 0

Total 21.6 17.1

6 EPRA Cost Ratios

EPRA CAPEX

6 0 6 1


COMPANYPORTFOLIO

44.1. Description

4.2. Office buildings

4.3. Land portfolio

4.4. Las Colinas Golf & Country Club

Oxxeo

Land bank2%3% Las Colinas and others

As indicated above, the valuation of the Company’s port-

folio as of 31 December 2019, carried out by an indepen-

dent property valuer, amounted to €2.283 billion.

It principally comprises office properties for lease, worth

€2,167 billion, accounting for 95% of the total. The value

of the land bank for future office developments stands at

€44m, 2% of total. Finally, the valuation of the residential

portfolio, mainly comprising the residential tourism deve-

lopment Las Colinas Golf & Country Club, is €72m, 3% of

the total value of the Company’s assets.

Gmp has a diversified portfolio of office buildings and busi-

ness parks, comprising both single tenant and multi-tenant

properties.

The weight of the assets located inside the M-30 Madrid

ring road is very significant, which accounts for 75% of

the valuation. Most properties enjoy prime locations in

Madrid’s Business Centre.

During the period 2014-2017, Gmp invested intensely in

properties, which significantly increased the area of its

portfolio dedicated to office buildings. At the end of finan-

cial year 2019, the value of new properties acquired in the

period 2014-2017 accounted for 22% of the GAV and 23%

of the total surface area.

At 31 December 2019 the Company had one asset under

development: ARQBÓREA, an office building project loca-

ted in Las Tablas. This asset under development accounts

for 5% of the GLA and 2% of the GAV.

The sale of the assets Barajas 1 and Llano Castellano 51,

in the first quarter of 2019, has had a significant impact on

the share of weight in the portfolio:

– It has increased the proportion of multi-tenant assets.

Llano Castellano 51 was an asset with a large GLA occu-

pied by a single tenant.

– It has increased the proportion of assets located inside

the M-30 Madrid ring road. Both assets sold were located

outside this ring road.

– It has reduced the proportion of assets acquired in

the period 2014-2017. Both assets joined the portfolio in

2015.

Gross Leasable Area (GLA) 345,565 sq m

Value (GAV): €2,167m

Breakdown of the total GAV total by type of asset75% Multi-tenant

25% Single tenant

71% Multi-tenant

29% Single tenant

59% Inside M-30

41% Outside M-30

75% Inside M-30

25% Outside M-30

78% Historical Portfolio

22% Acquisitions

2014-2017

76% Historical Portfolio

24% Acquisitions

2014-2017

95% Operating

5% Under development

98% Operating

2% Under development

Type

Type Location

Location

Incorporation

Incorporation

Status

Status95% Office portfolio

Total GAV

€2,283m

COMPANY PORTFOLIO

4.1. Description

4.2. Office buildings

6 4 6 5

Parque Norte Business Park

ANNUAL REPORT 2019

A5

M40

M30

A1

A2

A3

A4

14

15

13

12

1

2

34

5 6

7

8

910

N

LOCATION OF OFFICE ASSETS FOR RENTAL IN MADRID.

Alcalá 16

Condesa de Venadito 1Titán 4

Puerto Somport 9Oxxeo

Quintanadueñas 6 ARQBÓREA

Serrano Galvache 56Parque Norte Business Park

Manuel Cortina 2

Goya 14

Eloy Gonzalo 10

Hermosilla 3

Castellana 81

Génova 27

Castellana 77

Luchana 23

Orense 34Iberia Mart I and IIcomplex

1

6

12 13

7 8 9 10

2 3 4 5

11

CBD / City Centre

M-30

North Madrid

11

14 15

CBD / City Centre

M-30

North Madrid

COMPANY PORTFOLIO ANNUAL REPORT 2019

6 7

A listed building by the architect Ricardo Bastida, in the mo-

nument category, considered to be of special interest by the

Madrid Regional Ministry of Education and Culture. It was

originally the headquarters of the Banco de Bilbao.

It stands out for its impressive façade, with sculptures by

Quintín de la Torre, as well as for the master craftsmanship

of the stained-glass windows and murals in its central rotun-

da, created by Aurelio Arteta.

The two monumental quadrigas that crown the towers were

sculpted in bronze by Higinio de Basterra.

Between 1975 y 1981, the architect Pedro Bidagor Lasarte

extended the building into calle de Sevilla, respecting the

architectural design of the original building and its main

façade.

It was fully renovated in 2001.

TENANTSComunidad de MadridBBVA

PARKING SPACES 155

CERTIFICATIONS

Integrated Management System:

– ISO 9001

– ISO 14001

– OHSAS 18001

AREA20,827 m2

ARCHITECTRicardo Bastida

OCCUPANCY100% (31 December 2019)

ALCALÁ 16

6 9

YEAR OF CONSTRUCTION1920

YEAR OF REFURBISHMENT2001


A building with a distinctive tiered glass front. The street

where the building is located was planned in the 19th cen-

tury when the Marquis of Salamanca, who owned 100 hec-

tares in the area, promoted developments to the north, east

and west of the capital, creating the Salamanca district. It

is one of the most distinguished, central districts of Madrid,

which boasts architectural unity through the building faça-

des and a high concentration of designer boutiques.

In 2011, Gmp fully refurbished the seven floors of this buil-

ding to enhance the natural light and functionality of the

space.

Since 2012, it has housed the headquarters of the National

Court (Audiencia Nacional), encompassing the Court, Admi-

nistrative Courts and the Labour Chamber.



TENANTSAudiencia NacionalBBVA

PARKING SPACES 100

CERTIFICATIONSIntegrated Management System:

– ISO 9001

– ISO 14001

– OHSAS 18001

AREA9,138 m2


GOYA 14

7 1


The only business campus in Madrid’s prime district. It

comprises two buildings and was designed by the Ra-

fael de La-Hoz architecture studio, its design prioritises

the optimisation of energy consumption, exploitation of

natural light, work rationalization, innovation and environ-

mental protection.

Notable for its glass façade and the central atrium with

skylight, as well as its interior garden linking the two buil-

dings on campus. It is the head offices of the legal servi-

ces firm Garrigues.

The business campus holds LEED Gold certification in

the Existing Building category, awarded by the US Green

Building Council (USGBC).


TENANTGarrigues

PARKING SPACES121

CERTIFICATIONSLEED Gold Existing Building


– ISO 9001

– ISO 14001

– OHSAS 18001

AREA16,735 m2

ARCHITECTRafael de La-Hoz


HERMOSILLA 3

7 3


Since it was erected in 1973, the building has become a

landmark in an area where nineteenth-century or novecen-

tista buildings predominate. It is the living expression of a

contemporary reality that opened up in one of the most

elegant districts in twentieth-century Madrid.

The thorough refurbishment of Génova 27, undertaken by

Gmp in 2005, was conceived by the Lamela studio, the

same architectural practice that originally designed the

building.

This studio reinterpreted the building, giving the exterior

greater transparency, leveraging natural light and reducing

acoustic transmission. The building received a special

mention in the third edition of the Gaceta de los Negocios’

Real Estate Awards in the category of property refurbish-

ment.

In 2016 an improvement plan was implemented to moder-

nise the common areas and deliver higher levels of comfort

to occupants and visitors. Such actions included the reno-

vation of the main and floor lobbies and toilets.

It holds LEED Gold certification in the Existing Building

category, awarded by the US Green Building Council

(USGBC).



– ISO 9001

– ISO 14001

– OHSAS 18001


TENANTSBDO

Engel & Völkers

H&M

ING

VIPS

Vivus Finance

PARKING SPACES 188

AREA11,436 m2

ARCHITECTEstudio Lamela

GÉNOVA 27

7 5




This was the first office building developed by Gmp and has

housed the Company headquarters since its inception. It laid

the foundations of Gmp’s business strategy as a specialised

property-owning real estate group in the premium office seg-

ment in Madrid.

The building has straight lines and is entirely freestanding hen-

ce most rooms are exterior and receive plenty of natural light.

During the period 2014-2016 an improvement plan has been

implemented to modernise the common areas and provide

greater levels of comfort for occupants and visitors. The ac-

tions developed include refurbishing the lobbies on the diffe-

rent floors, as well as the toilets.

In addition, in 2016, the building was equipped with a new

space that can be rented out for meetings in order to provide

clients with a function room where they can hold events such

as company meetings, courses, or presentations.

In 2018, the range of value-added services for clients of the

building was extended by installing a Wi-Fi service in the com-

mon areas: lobby and car park. The parapets on the façade

were renewed to improve energy efficiency and enhance the

aesthetics of the building.

At the time of writing this report, a full action plan is being

implemented at the building to offer clients new spaces aimed

at maximizing their comfort and wellbeing. This plan includes

a new reception area that opens out to a lounge or informal

meeting space that will offer a supportive café service, a te-

rrace for relaxation and unwinding, a renovated space to host

corporate events, equipped with the latest technology and an

open-air gym on the roof top. Complementing this new space

to promote sport, there will also be changing rooms.

It holds LEED Gold certification in the Existing Building cate-

gory, awarded by the US Green Building Council (USGBC). In

addition, Gmp’s headquarters on the seventh floor is one of

only three offices in Madrid to have obtained LEED Platinum

certification in the Commercial Interiors category.


TENANTSComunidad de Madrid

Gfk

Gmp

HDI Seguros

Interbrand

Omnicom Group

PARKING SPACES 124



– ISO 9001

– ISO 14001

– OHSAS 18001

AREA13,858 m2


LUCHANA 23

7 7


Gmp acquired the property in April 2017. Its 16,383 m² were

occupied by Mapfre who stayed in the building until December

2017, when it left 15,141 m² vacant, which were pre-leased

to Patrimonio del Estado. This was the second biggest rental

operation in the office market in Madrid inside the M-30 ring

road in 2017.

Renovation work and fit-out of the building started at the end

of 2017 and was completed in July 2018.

Manuel Cortina 2 is a freestanding building, with straight lines.

Its large façades onto the streets Manuel Cortina, Luchana,

Manuel Silvela and Francisco de Rojas make it stand out in

the surroundings.


TENANTSMapfre

Patrimonio del Estado

PARKING SPACES 355

CERTIFICATIONSIntegrated Management System:

– ISO 9001

– ISO 14001

– OHSAS 18001

AREA16,383 m2


MANUEL CORTINA 2

7 9


Gmp acquired the property In July 2014 and started a com-

prehensive renovation programme immediately. The buil-

ding was fully pre-leased nine months before the completion

of the renovation work.

The architecture studio selected to carry out the renovations

was the reputed international firm luis vidal + architects

(LVA) and the project enhances the functionality of the floors

and adds an open façade featuring large panes of glass from

floor to ceiling, leveraging natural light to the full and redu-

cing acoustic transmission.

It holds LEED Gold certification in the Core & Shell category,

awarded by the US Green Building Council (USGBC).

In 2016 it won the accolade for “Best Renovation” awarded

by the Spanish Association of Offices (AEO).

In 2017, Eloy Gonzalo 10 was named “Best full building re-

novation” in the ASPRIMA- SIMA awards that reward the

excellence of the projects and initiatives in the sector.


TENANTSGrupo Havas

Perrachica restaurant

PARKING SPACES136

CERTIFICATIONSLEED Gold Core & Shell


– ISO 9001

– ISO 14001

– OHSAS 18001

AREA13,039 m2

ARCHITECTluis vidal + arquitectos


ELOY GONZALO 10

8 1


This masterpiece by Sáenz de Oiza and of Spanish architectu-

re of the 20th century, is located in the most privileged area of

Madrid’s financial hub and, following an ambitious renovation

plan, it looks to the future as a symbol of sustainability, acces-

sibility and technology.

Renovation on Castellana 81 included the creation of a full

service floor, including an auditorium with a capacity for 188

people, equipped with state-of-the-art technology, 8 meeting

rooms fitted out with cutting-edge technology, physiotherapy

service, showers and changing rooms. In 2017 the value-

added services offer for clients was extended by installing

Wi-Fi in the common areas: lobby and car park.

In March 2017, Castellana 81 became the first building on

the Paseo de la Castellana to be awarded LEED Platinum cer-

tification in the category Core & Shell, the highest distinction


At the end of 2017 it achieved DIGA (Hallmark of Level of

Accessibility) five-star certification. This makes Castellana 81

the first singular office building in Spain with the highest ac-

cessibility level.

In May 2018, Castellana 81 became the first WELL office buil-

ding in Spain and the fifth in Europe to achieve Gold standard

WELL building in the Core & Shell category. WELL is the first

international certification for buildings that solely focuses on

human health and wellbeing.

In January 2019 the building was declared a Heritage Asset

in the monument category. It is the first time that a building of

recent construction has been protected as a Heritage Asset in

the Madrid Region.

Castellana 81 has received a series awards:

– “2017 Prize for Best Renovation” from the AEO-Spanish

Office Association- April 2018.

– “Best Non-Residential Real Estate Action” in the ASPRI-

MA-SIMA awards. May 2018.

– “2018 Official Institute of Architects of Madrid (COAM)

Prize” for its renovations. October 2018.

– “The Architecture Masterprize” in the category Architectu-

ral Design – Restoration & Renovation. September 2019.

TENANTSElecnorFaboritGrant ThorntonHAYSKairós Digital SolutionsOracleSavills Aguirre NewmanTekaZurich

PARKING SPACES407

CERTIFICATIONSWELL Gold Core & Shell

LEED Platinum Core & Shell

AEO Technical Quality Rating: A

DIGA 5-stars


– ISO 9001

– ISO 14001

– OHSAS 18001

AREA38,857 m2

ARCHITECTFrancisco J. Sáenz de OizaWinner of the Spanish Architecture Prize.Gold Medal for Merit in the Fine Arts 1987.Prince of Asturias Award for the Arts 1993.


CASTELLANA 81

8 3




Located in AZCA, the financial centre of Madrid, the building

was acquired by Gmp in February 2015 and full renovations

on the building began in October of the same year and were

completed in May 2017.

The acclaimed international practice, luis vidal + arquitectos,

carried out the renovation project, which completely transfor-

med the original building; giving it a highly distinctive aesthe-

tic and placing it at the cutting edge of sustainability. In fact,

in 2017 it won the “Award for Best Office Architecture Spain

2017-2018” in the European Property Awards Architecture. At

the time of writing this report, the building has also received a

“Special Mention” in the German Design Awards 2019.

The architectural approach to the façade is worth highlighting

as not only does it represent an aesthetic achievement but

also enhances the efficiency and sustainability of the building

through adding slats that protect against direct sunlight. The

option of these distinctive slats being lit up at night, gives Cas-

tellana 77 greater visibility, making it stand out from its surroun-

dings.


building was extended through the installation of Wi-Fi in com-

mon areas: lobby and car park.

In the framework of Castellana 77’s commitment to accessibi-

lity, it achieved DIGA 5-star certification (Hallmark of Level of

Accessibility) in April 2017 and became the first office building

in Spain with the highest level of accessibility in the Built-up

Surrounding category for properties built after 2010.

In March 2019, Castellana 77 achieved the highest distinction

awarded by the US Green Building Council (USGBC) in LEED

certification, that is, Platinum level in the Core & Shell category.

In addition, in November 2019, the building obtained Gold

WELL in the category Core & Shell. WELL is the first interna-

tional certification process for buildings that solely focuses on

human health and wellbeing.


TENANTSBanco SantanderEverisWeWork

PARKING SPACES 190

CERTIFICATIONSLEED Platinum Core & Shell

WELL Gold Core & Shell

DIGA 5 stars


– ISO 9001

– ISO 14001

– OHSAS 18001

AREA16,302 m2

ARCHITECTluis vidal + arquitectos


CASTELLANA 77

8 5


It was the first World Trade Center in Madrid and the first bu-

siness complex with a Paddle Tennis Club. It comprises two

buildings and the robustness of its finishes and spacious com-

mon areas are worth highlighting. It includes a meeting centre

accommodating 100 people.

During the period 2014-2015, a comprehensive renovation

plan was implemented in order to modernise the common

areas and deliver higher levels of comfort to occupants and

visitors. This included refurbishing the main lobby areas, as

well as the lobby on each floor, the toilets, car park and mee-

ting rooms.


building was extended by installing Wi-Fi in common areas:

lobby and car park.

Both buildings hold LEED Gold certification in the Existing

Building category, awarded by the US Green Building Council

(USGBC).


TENANTS

Costa CrucerosFECYTFonditelLegoTelefónica

PARKING SPACES 469



– ISO 9001

– ISO 14001

– OHSAS 18001

AREA37,411 m2


ORENSE 34Iberia Mart I and II Complex

8 7


Property acquired by Gmp in August 2015. Located in the

Méndez Álvaro area, the building enjoys excellent visibility

from the M-30.

It is a freestanding building, surrounded by a private garden

area, with natural light on all four façades and fitted with a

modern and innovative building access system.

The building holds BREEAM ES in Use certification, with a

rating of “Very good” and “Excellent” for management.


TENANTAdif

PARKING SPACES 218

CERTIFICATIONSBREEAM ES In-Use


– ISO 9001

– ISO 14001

– OHSAS 18001

AREA10,722 m2


TITÁN 4

8 9


Building acquired by Gmp in March 2015. It is a freestan-

ding building, surrounded by a private garden area.

It houses large office spaces that are full of natural light.

Its straight and sober architectural lines, as well as its so-

lid structure, stand out in its location, next to the M-30 and

Barcelona A2 highway, in an established business area with

many representative buildings that serve as company head-

quarters.

Between 2015-2016 a comprehensive renovation plan has

been implemented to enhance the block’s functionality,

distinctive aesthetic and the levels of comfort it delivers to

occupants and visitors. Such improvements have included

refurbishing the main lobby and floor lobbies and moderni-

sing the outside areas and full renovation of the façade that

included replacing the windows.

It holds LEED Gold certification in the category Core & Shell,



TENANTS

Basic Fit

El Economista

FeuVert

Just Eat

UniversalPay

20 Minutos

PARKING SPACES440

CERTIFICATIONS

LEED Gold Existing Building


– ISO 9001

– ISO 14001

– OHSAS 18001

AREA20,789 m2


CONDESA DE VENADITO 1

9 1


Built at the end of the 2000s, it was the biggest urban business

park in Madrid and first business city project that combined

technology with a privileged location.

The architectural concept, designed by Rafael de La-Hoz, fo-

cuses on a “spirit of unity”. The six buildings are situated on

the perimeter around a central area that serves as the heart of

the complex. It includes a meeting centre accommodating 100

people which has been refurbished in 2015.

Between 2015-2016, improvement work was implemented on

the main lobbies including the installation of a LED luminary

skylight, new HVAC systems and revolving doors. The toilets

were also fully refurbished.

In 2017, a series of actions were implemented to extend the

offer of value-added services for clients at the park. This inclu-

ded installing a parking space guide system in the car park, 13

charging points for electric vehicles and free Wi-Fi service in

common areas.

The business park holds LEED Gold certification in the Existing

Building category, awarded by the US Green Building Council

(USGBC).




– ISO 9001

– ISO 14001

– OHSAS 18001


TENANTS

AstraZeneca

EDPRenováveis

GF

KFC

Lenovo

Novartis

Thales

Vestas

PARKING SPACES 812

AREA45,910 m2


SERRANO GALVACHE 56Parque Norte Business Park

9 3


YEAR OF CONSTRUCTION 2016 - 2018

TENANTSCapgeminiDO EATLenovoPFS

PARKING SPACES 450

CERTIFICATIONSLEED Platinum Core & Shell

In the WELL certification process

AEO Technical Quality Rating: A+

DIGA 5-stars


– ISO 9001

– ISO 14001

– OHSAS 18001

AREA14,299 m2



9 5

In April 2018, Gmp completed work on a new office buil-

ding, Oxxeo, on one of the plots of land it owns in Las Tablas,

where development had started in 2016.

The project, following a sustainable and avant-garde de-

sign, has been created by the acclaimed international ar-

chitecture practice Rafael de La-Hoz. It is a freestanding

building, with a triangular floor plan, following an innovative

architectural concept that takes the load-bearing structure

to the outside of the building forming a latticework, which

in turn protects the façade from direct sunlight. This design

maximises space on the office floors and leverages natural

light. Moreover, Oxxeo boasts a roof area equipped with two

individual paddle tennis courts, a jogging track and outdoor

exercise area and relaxation area.

Designed with environmental responsibility in mind, in Sep-

tember 2018, the building obtained the prestigious LEED

Platinum certification for Core and Shell, making it the first

office project in the Las Tablas area to achieve the highest

distinction awarded by the US Green Building Council

(USGBC).

In June 2018, it obtained DIGA (Hallmark of Level of Acces-

sibility) 5-star certification, making it the first newly cons-

tructed office building in Spain to achieve the highest level

of accessibility.

In addition, the WELL Building Standard certification pro-

cess has been set in motion, in the category Core & Shell,

which guarantees a design and construction model that fo-

cuses on human health and wellbeing, this process is ex-

pected to be completed in 2019. In this respect, Oxxeo is

the first office building in Spain and a pioneer in Europe

in incorporating dynamic lighting that adapts to occupants’

circadian rhythms.

In 2019, Oxxeo received the following awards:

– “Best Non-Residential Real Estate Action” in the ASPRI-

MA-SIMA awards. May 2019.

– “Best Office New Construction Office Building 2018” by

the Spanish Office Association (AEO).

PUERTO SOMPORT 9Oxxeo


In October 2018 Gmp started development on ARQBÓ-

REA, a new office building on land in Las Tablas. Work is

expected to be completed by the end of 2020.

The project has been designed by the acclaimed archi-

tecture practice ORTIZ LEÓN. Its architectural proposal

includes a double skin with terraces and vegetation on

façades with greatest exposure to sunlight. This efficient

design component protects the building from direct sun-

light and provides higher levels of comfort for occupants,

as well as saving on energy costs substantially.

ARQBÓREA has been designed to maximise the well-

being of users. In this respect, the development plans to

create landscaped green areas and a rooftop area with

two spaces providing views of the surrounding area and

enabling users to unwind and relax.

The building has already obtained the prestigious LEED

Platinum pre-certification in the category Core & Shell,

the highest distinction awarded by the US Green Buil-

ding Council (USGBC), and has initiated the WELL Buil-

ding Standard certification process for Core & Shell,

which guarantees the design and construction model

focuses on the health and wellbeing of users. It aims to

achieve Platinum standard, the highest rating level for

WELL certification.

Within ARQBÓREA’s commitment to accessibility, it has

initiated the process to obtain the top 5-star DIGA certi-

fication (Hallmark of the Level of Accessibility). This cer-

tification accredits that any person, regardless of their

condition, can move around the building comfortably

and safely.

YEAR OF CONSTRUCTION 2018 - 2020

CERTIFICATIONSPre-certification LEED Platinum Core & Shell

In the WELL certification process

In the DIGA certification process

OCCUPANCYIn development

PARKING SPACES450

AREA15,790 m2

ARCHITECTEstudio ORTIZ LEÓN

QUINTANADUEÑAS 6ARQBÓREA

9 7


Distribution of land portfolio per area and m² of buildable area

The Gmp Group owns a land bank for office projects co-

vering a buildable area of 50,928 m². This portfolio is

located in strategic areas of north Madrid that have deve-

loped the most in recent years: Las Tablas, Valdebebas

and Las Rozas, three new business districts carefully.

Las TablasLas Rozas

Valdebebas

4.3. Land portfolio

Las Rozas Las Tablas Valdebebas Total

12,998 sq m 6,646 sq m 31,284 sq m 50,928 sq m

9 9

Land available in Valdebebas


4.4. Las Colinas Golf & Country ClubLas Colinas Golf & Country Club is an exclusive residen-

tial community with low density housing, built around an

18-hole championship golf course. Out of the 6,000 units

permitted by the Local Planning Schedule, development

of less than 1,700 is planned.

The development spreads across 330 hectares of beau-

tiful countryside, near the coast and south of Alicante;

nestling in a valley surrounded by hills that form a natural

barrier.

This ensures the privacy of the resort, enhanced by a

single access road with 24-hour security service. It is su-

rrounded by a nature reserve covering over 10,000 hecta-

res where no residential development is permitted.

Las Colinas Golf & Country Club enjoys an exceptional cli-

mate; it is well connected by road, rail and air and is an

environmentally friendly resort. It complies with a compre-

hensive plan of environmental protection and sustainable

development measures drawn up by the Polytechnic Uni-

versity of Valencia and the homes, golf course and other

facilities all blend carefully into the surroundings. Moreo-

ver, it boasts a 200,000 m² nature reserve, with nature

trails and indigenous vegetation. There are over 20 golf

courses and many sailing clubs and marinas less than half

an hour’s drive away.

Las Colinas Golf & Country Club offers comprehensive

sports, leisure, accommodation and restaurant facilities,

including the golf course, a private Beach Club on the sea-

front. Moreover, in July 2019, Las Colinas Sports & Health

Club opened to the public: a new space comprising two

paddle tennis courts, three tennis courts, a multi-sport

court, three massage treatment rooms, gym, changing

rooms and outdoor swimming pool. In December 2019,

construction of the restaurant il Palco was completed,

which was opened at the beginning of 2020.

Since it opened in the summer of 2010, Las Colinas Golf

& Club has garnered a prestigious international reputation

for the exceptional design of its properties, high quality

standards of its services and facilities, protection of the

natural surroundings and excellence of its golf club. The

course is ranked 63rd in the Top 100 courses in Continen-

tal Europe published by the British magazine, Golf World,

and it has been named “Spain’s Best Golf Course” in the

World Golf Awards three years in a row, in 2015, 2016

and 2017.

In 2019, Las Colinas Golf & Country Club won the World-

Travel Awards in the categories “Europe’s Leading Villa

Resort” and “Spain’s Leading Villa Resort”, which stren-

gthens its exclusive and high-quality differential positio-

ning. It was also named “Best Residential Development

Spain” in the European Property Awards 2019-2020.

At the time of writing this report, Las Colinas Golf & Coun-

try Club has been named “Best Iberian Golf Resort 2020”

in the LUX Travel & Tourism Awards.

Key data on Las Colinas Golf & Country Club

Area 330 ha.

Residential buildable area 232,266 m2

Hotel buildable area 25,000 m2

Commercial buildable area 3,250 m2

Golf buildable area 6,000 m2

Homes planned 1,634

Homes sold, built and delivered at year-end 2019 508

Homes sold at the design/construction stage at year-end 2019 81

Managed tourist homes 2019* 24

*Las Colinas Residences: accommodation offer, including villas and apartments.

Golf course

Holes 18

Par 71, with par 3, 4 and 5 holes

Designer Cabell B. Robinson

Management Troon Golf

Rounds 2019 40,612

Amenities

Golf academy, practice area, Las Colinas Short Game Facility by Miguel Ángel Jiménez, Las Colinas Sports & Health Club,

Clubhouse with restaurants UNiK CAFÉ , il Palco and enso sushibar, a golf shop and changing rooms.

Customer rating 4.6 out of 5

1 0 0 1 0 1

il Palco restaurant


CORPORATE SOCIAL RESPONSABILITY

5

5.1 Innovation from sustainability

5.1.1 Corporate Social Responsibility

5.1.2 Innovation

5.1.3 Transparency and communication

5.2 Client and user experience

5.2.1 Customer and user satisfaction

5.2.2 Health, safety and wellbeing of tenants

5.3. Our talent

5.3.1 Human team

5.3.2 Training and team development

5.3.3 Employee satisfaction

5.3.4 Team health and safety


5.4.1 Climate change and energy efficiency

5.4.2 Circular economy

5.5. Community engagement

5.5.1 Responsible supply chain management

5.5.2 Social Action

5.6. COVID-19

5.7. About this report

Index EPRA contents

Index GRI and EPRA contents

This CSR Plan channels the contribution made by Gmp’s

activity to achieving Sustainable Development Goals

(SDGs) promoted by the United Nations. Specifically,

based on the Group’s business area and its bet on com-

munity engagement through its Foundation, three priority

SDGs have been identified where Gmp can make a sig-

nificant contribution:

While SDGs 8,11 and 16 have been identified as priorities

for Gmp’s activity, a contribution is made to other Sus-

tainable Development Goals through all the Company’s

processes, which will be pinpointed in the chapters of

this report.

In addition, and as a result of approving the CSR Plan,

the Company has updated its CSR Policy according to

the recommendations from the Code of Good Governan-

ce of the Spanish National Securities Market Commission

(CNMV), which is expected to be approved by the Board

of Directors in 2020.

Gmp contributes to SDG 9 through its commitment to delivering innovative and differentiated

products and services that meet the highest quality standards, with the aim of establishing

long-term relations with clients and promoting the wellbeing and satisfaction of end users at

Gmp’s properties.

CSR occupies a strategic position in Gmp’s management,

hence the highest governing body for CSR is Gmp’s

Board of Directors, which is responsible for approving

the Company’s CSR Plan and CSR Policy.

Since 2019, the Audit, Compliance and Sustainability

Committee oversees the proper implementation of CSR

matters, chiefly supported by the CSR Committee. The

Audit, Compliance and Sustainability oversees over-

seeing all CSR-related documentation and information

raised to the Board, guaranteeing that it has been ma-

naged and reviewed previously by the CSR Committee.

The CSR Committee created in 2018, comprises the

heads of each of the areas that manage key aspects of

sustainability: Head of Environmental Affairs, Director of

Innovation and Development, Coordinator of Regulatory

Compliance, Corporate Managing Director and Director

of the Gmp Foundation. This Committee meets every two

months with the main goal of focusing on CSR-related

guidelines set by the governing bodies, as well as moni-

toring the Company’s CSR strategy.

Innovation, as a strategic value aimed at identifying and

anticipating market trends, is one of the pillars of Gmp’s

differential positioning, coupled with high levels of cus-

tomer satisfaction and loyalty. Innovation is part of Com-

pany culture and it is integrated in all its processes and

decisions, including its commitment to sustainability.

The honourable mention for Sustainable Leadership that

Gmp received in 2019 at the Madrid Family Business

Association (ADEFAM) Awards is testament to the close

link between managing sustainability and innovation at

the Company. These awards recognise the efforts made

by businesses to drive forward and reinvigorate Madrid

business through innovation, support for enterprise and

sustainability.

Gmp works hard to include sustainability criteria in all

its decisions. This is exemplified by the two green loans

it has signed in recent years, which comply with ‘Green

Loan Principles’.

In 2018, Gmp signed the first green loan in the Spanish

Real Estate industry with BBVA, for 68 million euros. This

financing was allocated to the iconic building Castellana

77 in Madrid, which, after renovation, obtained the hig-

hest level of LEED certification (Platinum) in the category

Core & Shell.

In December 2019, Gmp renegotiated the majority mort-

gage tranche of the syndicated loan that the Company

signed in 2016, improving the conditions attached to this

loan substantially. Immediately after this renegotiation, in

January 2020 it formalised the conversion of 525 million

euros from that tranche to a green loan, accounting for

74% of the Company’s total syndicated financing.

For a financing deal to be considered a green loan, it

must aim to contribute to environmental sustainability

and be rated accordingly by a third party. Said environ-

mental contribution is measured by monitoring sustaina-

ble variables associated with each loan. For Gmp’s two

green loans, certification in accordance with the ‘Green

Loan Principles’ guide was carried out by the consulting

firm Arup.

As part of its efforts to generate a positive impact and en-

gage with the community, Gmp has developed a Corpo-

rate Social Responsibility (CSR) Plan for 2019-2023. This

Plan seeks to promote the Company’s Strategic Business

Plan through differential actions aimed at business, em-

ployees and clients.

The plan covers a total of 49 actions, distributed in 17

areas that gain traction through 6 key strategic focal

points:

– Customer satisfaction, trust and loyalty.

– Transparency, ethics and regulatory compliance.

– Socially responsible culture.

– Sustainable and efficient management with low

impact on the environment.

– Talent development.

– Sustainable value for stakeholders.

5.1.1. Corporate Social Responsibility

CSR governance model

Decent work and economic growth

Sustainable cities and communities

Peace, justice and strong institutions

5.1. Innovation from sustainability

CORPORATE SOCIAL RESPONSABILITY ANNUAL REPORT 2019

1 0 4 1 0 5

Gmp’s innovation strategy is built on four key aspects:

The company launched Gmp INnova in 2011 to stren-

gthen the culture of innovation among all members of

the organisation. This tool drives innovation at all profes-

sional levels; encouraging the creation of practical new

ideas to improve products, services, processes or busi-

ness approaches.

Employee proactivity, engagement and participation has

transformed Gmp INnova into a dynamic and active tool.

Since its launch and at the close of 2019, the chan-

nel has received 323 innovation projects out of which,

49% have been approved and, 61% implemented. The

projects implemented have delivered significant advan-

ces in strategic areas of the Company, such as energy

efficiency, social action, accessibility of the portfolio and

the creation of added-value products and services for

clients.

In March 2019, coinciding with its 8th anniversary, Gmp

INnova, launched a digital platform to speed up the pro-

cess of presenting and approving innovation projects,

facilitate knowledge management and strengthen the

visibility of innovators. In addition, it also set up INnova

Lab, a corporate social network that promotes interaction

among employees. In 2019, INnova Lab received 150

posts that received 4,746 views and 365 “likes”.

In coordination with the HR department, Gmp INnova

promotes training in the area of innovation. In this res-

pect, in 2011 it was a pioneer in sponsoring the first “El

Ser Creativo” (Creative Being) conference held in Ma-

drid, to which all members of the Company were invited.

Since 2013, it has organised a range of employee trai-

ning programmes aimed at offering techniques and tools

that promote creativity and innovation.

In 2018 the Company launched the Gmp Smart, an

application for users of the Company’s buildings which

aims to improve their experience, satisfaction and well-

being. It aims to:

– Strengthen corporate visibility of tenant companies.

– Promote and strengthen interrelations and collabora-

tion among users of the buildings, as well as between

users and Gmp.

– Building an exclusive community whose members

have access to a wide range of added-value products

and services.

Since its launch, work has been carried out to extend

installation of the app at Gmp’s buildings, as well as its

functionalities. At the close of 2019, Gmp Smart was

available in Luchana 23, Iberia Mart I and II, Oxxeo,

Castellana 81, Castellana 77, Génova 27 and Parque

Norte.

Digital transformation for end users with the Gmp Smart app

Intra-entrepreneurship via Gmp INnova1

Innovation has been part of Gmp’s DNA since its incep-

tion. In fact, its business vision created at the end of the

70s, as a property-owning developer specialising in the

premium office segment, was a disruptive approach in

the real estate market of the time. Innovation has gui-

ded Gmp’s business model throughout its trajectory as a

Company through to the present day.

5.1.2. Innovation

Property developer at the cutting-edge of promoting business parks and key-in-hand

developments.

Parque Norte was the biggest urban business park in Madrid at the time it was built

and the first business city project to combine leading-edge technology with a prime

location. Castellana Norte was the first Business Park in Las Tablas, developed as a

key-in-hand project for Vodafone.

First Spanish real estate company to obtain AENOR triple certification for an

Integrated System for Quality, Environment and Health and Safety in the Workplace.

It continues to hold this differential position in the market to this day.

Gmp positions itself as pioneer in betting on environmental sustainability in its port-

folio through LEED certification for most of its buildings.

First real estate company in Spain to initiate the process of WELL certification for

three of its buildings, positioning itself as a pioneer in integrating human health and

wellbeing into its business vision.

Castellana 81, first WELL building in Spain and fifth WELL Gold Core & Shell building

in Europe.

1 0 6 1 0 7

2

2001

2009

2015

2017

2018


1 0 8 1 0 9


In addition to these two projects, Gmp is injecting innovation into its portfolio under management through several smart

functionalities:

Innovation applied to Gmp’s buildings seeks to position

them at the cutting edge of technology, optimise their

management and the user experience. Gmp is working

to make its current portfolio and its new developments

smart spaces. Two of its new developments stand out in

this regard:

– Oxxeo

This is the first office building in Spain and a pioneer in

Europe to adopt a dynamic lighting system adapted to

occupants’ circadian rhythms. This technology changes

the light temperature (the colour of the light) throughout

the day to regulate the body clock of the people working

at the building.

– ARQBÓREA

This development, which is expected to be completed at

the end of 2020, applies the latest solar protection and

comfort technology on its façade. This means it will be

equipped with an active façade, with an interior ventila-

tion chamber, through which air circulates thereby avoi-

ding certain climate conditions altering the temperatu-

re of the building. Moreover, this chamber has a smart

blind that adjusts automatically to the position of the sun

throughout the day. This guarantees thermal comfort of

occupants by avoiding the sensation of cold/hot “wall” in

the area near the façade and helps save energy.

We are living in an era of unprecedented technological

disruption. Even the most consolidated industries have

seen how emerging start-ups have grown quickly to posi-

tion themselves as leaders in the market. The distinctive

characteristics of start-ups mean they provide speed and

efficiency in innovation.

Given this situation, and in order to complement the

three key aspects of innovation mentioned previously

and continue to build Gmp’s differential positioning, at

the end of 2019, the Executive Committee approved the

launch of an open innovation programme for 2020. It

aims to access the entrepreneurship eco-system in order

to identify and test technological solutions that address

the Company’s strategic challenges with agility.

Mobile access for turnstile gates in lobbies and pedestrian readers in car parks.

– Castellana 81– Castellana 77– Luchana 23– Iberia Mart I and II– Parque Norte– Génova 27

– Parque Norte– Luchana 23– Iberia Mart I and II– Castellana 81 - also has mobile phone coverage in elevators.

– Luchana 23: counting number of persons, colour maps.

Wifi service in common areas and car parks.

Smart common areas. Cutting-edge technologies in MEETING PLACE.

– Castellana 81

Making the portfolio smart

Open innovation

Gmp promotes transparency and communication with its

stakeholders. Since 2009, it has conducted stakeholder

analysis and a report on their needs and expectations

is submitted every year for the approval of the Steering

Committee and CEO during the review meeting for the

Management of the Integrating Management System for

Quality, the Environment and Health and Safety.

In parallel, in 2019, Gmp performed materiality analysis,

which identified relevant issues for the Company and its

9 stakeholder groups.

5.1.3. Transparency and communication

Maintaining the trust of Gmp’s stakeholders through a relationship based on ethical prin-

ciples and honesty, rejecting any actions that could be associated with any type of corrupt

practice, which enables Gmp to contribute significantly to SDG 16.

3

4

Gmp Smart App

1 1 0 1 1 1


For Gmp it is essential to establish what the expectations

and needs of the stakeholders are and address them ac-

cordingly.

In order to identify the relevant issues, in 2019 an in-

ternal and external Company survey was commissioned,

and this helped pinpoint the main requests from analysts

in terms of sustainability, future regulation, information

received through communication channels with the

stakeholders and best practices in the industry.

Based on this methodology, a preliminary list of the rele-

vant issues for Gmp was drawn up, which was reviewed

by members of the CSR Committee. The final assessment

was performed by taking into account the level of impor-

tance for both Gmp’s business and reputation, as well as

the Company’s level of management of the same.

As a result of this methodology 13 material and priority

issues were identified for Gmp, which have been inclu-

ded in the CSR Plan and are being monitored closely. In

addition, a further 9 issues were identified which are also

being monitored and, depending on the situation of the

Company, specific actions will be carried out to improve

performance.

Communication with stakeholders is of key importance

for Gmp. For this reason, a series of channels have been

set up that allow for bidirectional communication with

each group.

Impo

rtan

ce

Management level

Materiality analysis Stakeholders and communication channels

Stakeholders

General Shareholders’ Meeting

Point of contact; Investor relations

Gmp, Las Colinas Golf & Country Club, buildings and new developments websites

Gmp and Las Colinas Golf & Country Club LinkedIn

Annual Report

Corporate clients and end users

Client meetings


Corporate mailboxes


Las Colinas Golf & Country Club Facebook and Instagram

Gmp Newsletters, Gmp Experience and Las Colinas Golf & Country Club

Information campaigns in buildings and at Las Colinas Golf & Country Club

Tablet in lobbies in WELL buildings

Large format screens and displays in elevators

Satisfaction surveys

Gmp Smart App

Landing Page for Gmp Experience

Providers

Periodic meetings



Employees

Workplace climate surveys

Breakfast with Management

Intranet

Barometer Briefings

Communications

Internal social network

Gmp INnova and INnova Lab

Society and tertiary sector organisations



Las Colinas Golf & Country Club Facebook and Instagram

Communications office

Gmp Foundation corporate website

Gmp Foundation social media (LinkedIn; Twitter; Facebook; YouTube and Instagram)

Public AdministrationGmp, Las Colinas Golf & Country Club, buildings and new developments websites

Official government communication channels

Real Estate Consultants


Extranet for Agents

Gmp LinkedIn

BanksGmp, Las Colinas Golf & Country Club, buildings and new developments websites

Periodic meetings

1 1 2 1 1 3


The data collected through these channels are analysed

by the dedicated department, which decides any specific

actions required to meet the expectations of stakeholders.

Likewise, departing from the CSR Plan and the CSR Po-

licy, the Company makes available to employees a series

of tools and guidelines to help them promote transparent

and responsible communication with stakeholders, as

well as to identify and manage stakeholder expectations.

The key initiatives as regards communication with the

stakeholders in 2019 are listed below:

– INnova Lab: communication channel launched in

March 2019 that encourages interrelations and collabo-

ration among employees in the area of innovation.

– App Gmp Smart: promotes interrelations and collabo-

ration among all members of the Gmp community, un-

derstood as all companies and individuals that occupy

the buildings that Gmp owns.

– In order to find out the views of its shareholders, which

is of key importance to the Company, Gmp organises

annual meetings and offers permanent data availability

through the Spanish Alternative Stock Exchange (MaB)

or dedicated email for investor relations.

– Communication campaign “Espacio sin Plásticos”

(Plastic-free Space): stemming from our bet on sustai-

nability, in April 2019, the Company developed a specific

communication plan for the “Espacio sin Plásticos” pro-

ject, promoted by Gmp’s environment department. It ai-

med to make the initiative more visible among corporate

clients and end users of the buildings and Meeting Pla-

ces. It was disseminated principally through projecting vi-

deos on screens at Gmp buildings, information displays,

newsletters to clients and posts on LinkedIn.

– Celebration of Gmp’s 40th anniversary at the iconic

building Castellana 81 in June 2019. 250 people from

different stakeholder groups attended, including share-

holders and investors, corporate clients, providers, real

estate consultants and bankers. During the celebrations

a corporate video was projected highlighting the miles-

tones of the Company’s trajectory and several members

of the Board of Directors, together with the Chair of the

Gmp Foundation addressed institutional messages to the

guests.

– Gmp Experience: In December 2019 the new brand

Gmp Experience was launched as a support vehicle

for corporate client and end user experience at the

Company’s buildings. Gmp Experience was presented at

Christmas through events at Iberia Mart, Parque Norte,

Castellana 81 and Oxxeo buildings. During these events,

the Head of Client Experience, a position created in mid-

2019, gave an institutional address. Coinciding with the

launch of Gmp Experience, a landing page was deve-

loped as a communication and interactive tool for end

users in the area of client experience.

Gmp works daily to offer its clients and end users a qua-

lity service and management that builds a differential

positioning for the Company, capable of attracting and

retaining clients and delivering added value to their ex-

perience. Back in 2009, it was the first real estate com-

pany to obtain triple certification ISO 9001, ISO 14001

and OHSAS 18001 (in 2020 the latter was replaced by

ISO 45001) from AENOR, for an Integrated System for

Quality, Environment and Health and Safety in the Work-

place. In 2018, this certification was renewed until 2021

and, every year, AENOR carries out an audit to monitor

the system, which outlines strong points, recommen-

dations for improvement and any nonconformities that

might occur. The findings of the audit last financial year

highlighted the degree of integration of the Management

System in the company’s business areas and its high le-

vel of maturity and implementation.

One of the pillars of the Management System is the inte-

grated policy in this area, which expressly states that En-

vironmental Management, Quality and Health and Safety

in the Workplace are the responsibility of each and every

person in the Company and, as such, they must include

it in any activity they carry out or order and in all deci-

sions adopted. This integrated policy can be consulted

on Gmp’s corporate website: www.grupogmp.com

As regards quality management of property and custo-

mer relations, every year the company sets a series of

objectives and monitors compliance of the same, in order

to ensure it moves towards ongoing improvement.

5.2. Client and user experience

5.2.1. Customer and user satisfaction

One of the strategic values of Gmp is the ongoing impro-

vement of management of its buildings, and its customers’

opinions are very important in this regard. The Company

implements a governance model to ensure that commu-

nication with clients and users is fluent, transparent and

efficient. There are four levels of responsibilities:

– Facility Manager: assigned to each building, manages

the daily relationship with clients and users and is physica-

lly located on the premises.

– Property Manager: this role has been created due to the

growth of the property portfolio under management. It is

an intermediate role between the Facility Manager and the

Head of Client Management in charge of supervising and

monitoring via constant communication and weekly visits

in person.

– Head of Client Management: based on reporting from

the Property Managers and Facility Managers assigned to

a building, this role is responsible for maintaining updated

information on the situation of clients and the building.

– In 2019, the Innovation and Development department

was set up, which covers the areas of New Product Deve-

lopment and Client Experience, focused on identifying and

creating products, services and experiences that address

new trends in demand. The Head of Client Experience

collaborates closely with the Heads of Client Management

and New Product Development to anticipate the needs of

clients and identify and manage points of contact during

the customer journey that promote wellbeing, life/work ba-

lance and collaborative interaction among all occupants of

the buildings.

In order achieve maximum customer satisfaction, Gmp seeks to deliver quality in its real

estate services, customer service and incident resolution process, always striving to pro-

vide the best solution in any given situation. This commitment helps create sustainable

cities and communities.

Image of the communication campaign "Plastic-free Spaces”.

1 1 4 1 1 5


At the end of 2019, a Client Experience Plan was launched

under the umbrella of the new brand Gmp Experience,

as a vehicle to structure the actions and added-value

initiatives of that plan.

Gmp conducts regular surveys on clients in order to

obtain feedback.

On the one hand, Gmp conducts annual surveys on

representatives of tenant companies (B2B), following the

procedure PC-05 from its quality management system,

defined according to Regulation UNE-EN-ISO 9001:2015.

This enables the Company to assess the level customer

satisfaction, which also permits it to identify potential areas

for improvement. In 2019, surveys were conducted on:

On the other hand, in order to measure end-user satis-

faction, which comprehends employees of tenant com-

panies (B2C), the Company is developing a Customer

Relationship Management (CRM) platform and exten-

ding the functionalities of the Gmp Smart app to conduct

surveys after hosting an event or implementing a specific

action or improvement.

The objective for 2020 is to complete development, ins-

tallation and establish KPIs for CRM and the new Gmp

Smart app.

Office Clients Retail space clients New clients in the current year

Satisfied clients

95.2% 84% 100% 93.8%4.15 out of 5

Incident management of assets is a key component to

improve client and user experience in Gmp’s portfo-

lio. For this purpose, the Company applies an internal

procedure that aims to manage incident resolution, as

efficiently and transparently as possible. Gmp has a di-

gital platform where the Facility Manager posts all the

information on incidents, from the initial incident report

through to resolution.

The resolution of non-critical incidents is managed by the

building staff where the incident occurs by adopting the

appropriate measures. Any major incidents are raised to

the Management Committee, led by the Head of Client

Management, which reviews them monthly and outlines

how to handle them and the actions to be adopted in

each case.

Incident Management

5.2.2. Health, safety and wellbeing of tenants

Gmp works to implement best practices in the market in

order to guarantee wellbeing, safety and health at its pro-

perties. In this regard, its pioneering bet in the market for

WELL Building Standard Certification in its buildings is

worth highlighting. This innovative system certifies that the

design, construction and operation of the buildings inte-

grates human health and wellbeing. It evaluates, on site,

the building’s impacts regarding seven concepts: air, wa-

ter, light, fitness, comfort, nourishment and mind. In 2018,

Castellana 81 became the first WELL office building in

Spain and the fifth WELL Gold Core & Shell in Europe, fo-

llowed by Castellana 77, which completed the certification

process at the end of 2019. Oxxeo expects to obtain this

certification shortly too. In addition, in 2019 Gmp started

procedures to obtain WELL certification for the rest of its

portfolio. Gmp has focused its management on accessi-

bility at its buildings through DIGA (Hallmark of the Level

of Accessibility) which Castellana 81, Castellana 77 and

Oxxeo have already achieved.

In parallel, the Health and Safety Department at Gmp has

implemented actions that guarantee a safe environment for

tenants such as the following:

– Emergency drills: emergency drills are carried out

annually in all buildings. At all Gmp buildings there is a

Self-Protection Plan, compliant with existing legislation,

which is reviewed from time to time with tenants.

– Communication with clients on Health and Safety is-

sues: there is an extranet platform with Gmp clients that

enables the coordination of activities and exchange of in-

formation on risks and preventative measures relating to

Health and Safety.

The Facility Manager at each Gmp property is in charge of

coordinating the four main services provided in the buil-

dings to ensure the health and safety of clients and users:

– Security: responsible for guaranteeing the security of the

building and its occupants 24 hours of the day.

– Hostess service: controls access of clients’ visitors in the

buildings, as well as managing access cards.

– Preventative maintenance and repairs of general insta-

llations at the buildings.

– Cleaning service: in charge of daily cleaning in all com-

mon areas of the buildings.

Gmp bets on the health and wellbeing of people through its commitment to working

towards ongoing improvement in the health, safety and wellbeing of clients and end users

at its properties.

1 1 6 1 1 7


Human capital is the main competitive advantage of or-

ganisations to generate added value in a global market.

Gmp is aware of the relevance of attracting and retaining

the best professionals, as well as ensuring employees

are motivated and engaged.

In consonance with this vision, in 2019 the new area of

Human Resources Management was created, stemming

from Gmp’s new people-centred Strategic Plan. Since its

inception it has worked on:

– A new people-centred strategy.

– Planning new projects that help achieve the objecti-

ves set in Gmp’s strategy.

– Creating the role of HR Business Partner and exten-

ding the number of staff dedicated to personnel mana-

gement.

In parallel to the organisation of the function, the area

concentrates its efforts on internal communication, the

strict definition of roles, responsibilities and objectives,

professional and personal development of workers and

work/life balance of the Gmp team.

There is a higher proportion of men in the workforce, which

is aligned with the situation in the sector. However, Gmp

does not make a distinction between women and men in

its personnel management and the number of women in

the Company has increased over the years, reflecting the

pattern in the labour market.

Moreover, managing the different generations that work

together and offering the team the opportunity to deve-

lop their professional career according to their preferen-

ces are some of the challenges Gmp faces.

The talent attraction processes at the Company follow

Curriculum Vitae criteria based on business needs, and

selection is not influenced by any other factors. Moreo-

ver, Gmp promotes recruitment based on permanent

contracts, thus 97% of employees hold a permanent

contract.

5.3. Our talent

5.3.1. Human team

Having a human professional and experienced team is one

of the most important drivers to ensure that the Company

runs efficiently. In this regard, the work culture at Gmp fo-

cuses on:

– Creating an attractive working development of emplo-

yees.

– Promoting training and knowledge management.

– Fostering talent detection, attraction, development and

retention.

– Generating fairness and equal opportunities.

– Facilitating a work/life balance.

– Promoting mechanisms that improve internal commu-

nication via the use of new technologies and updating of

the intranet.

– Working in a safe place that guarantee the health and

wellbeing of employees.

– Placing people at the centre of our policies, procedures

and, in general, in each of our actions.

Gmp believes that the real value of its business lies in its

team, maintaining a strong position through having an effi-

cient workforce. For this reason, Gmp applies talent ma-

nagement based on meritocracy and promoting team en-

gagement through the development and growth of people

and their wellbeing, ensuring that other factors such as

gender, religion, culture or ethnicity do not disadvantage

individuals.

At the close of 2019 Gmp had a workforce of 132 people,

with a distribution by gender of 61% men and 39% wo-

men.

Gmp manages to deliver quality work and provide economic

growth by applying the best practices in talent detection,

attraction and retention, ensuring principles of equality and

non-discrimination based on gender, age, disability or any

other circumstance.

Average workforce at Gmp 2019

Men 81

Women 51

Total 132

Employees by category Directors1 and managersMiddle managersand technicians

Administrativestaff

Other jobs

Women 1% 14% 13% 11%

Men 13% 33% 1% 14%

Employees by age Directors1 and managersMiddle managersand technicians

Administrativestaff

Other jobs

Under the age of 30 0% 4% 1% 8%

30-50 6% 36% 11% 15%

Over the age of 50 8% 7% 2% 2%

Type of contract Permanent Temporary

Men 58% 2%

Women 39% 1%

Total 97% 3%

1 The category Directors includes the Executive Committee.2 The category Directors includes the Executive Committee.

1 1 8 1 1 9


While additional criteria are not applied to the business

needs, Gmp fosters recruitment of young people and

local employment as most of its team have the same

nationality as the country where Gmp operates. In this

respect, it is worth highlighting that 100% of the mem-

bers of the Steering Committee are local3.

Below, we show the recruitment rates for 2019. In this financial year 71% of staff hired are under 30.

% local employees by gender2019

Men 77%

Women 95%

Total 84%

3 "Local" is defined as the person employed by Gmp with the same nationality as the geographical market in which it operates.4 Number of recruits out of total staff.5 Number of recruits out of total staff.6 The category of Directors includes the Executive Committee.7 Number of recruits out of total staff.

Under the age of 30 Between 30 and 50 Over 50

No. of new recruits (Emp-Turnover)

12 16 0

Rate of new recruits4 (Emp-Turnover)

71% 18% 0%

Directors6 and managersMiddle managers and

techniciansAdministrative staff Other jobs

Number of new recruits(Emp-Turnover)

2 7 6 13


11% 11% 32% 39%

Women Men

Number of new recruits(Emp-Turnover)

1 17


4% 4%

Women Men

Average number of training hours (Emp-Training) 210 112

5.3.2. Training and team development

Ongoing training is key to retaining talent as it delivers va-

lue to Gmp via the professional and personal development

of its employees, for this reason Gmp provides an annual

Employee Training Plan.

This Plan aims to improve employees’ skills, as well as

optimising their working day. The Human Resources de-

partment has designed this plan by taking into account a

number of factors such as job descriptions, changes that

occur during the year, opportunities identified and the on-

going search to develop the personal and professional skills

of employees.

In this regard, training is divided in four main areas:

– Training on innovation and digital transformation: in or-

der to meet Gmp’s commitment to innovation, this section

brings together courses with content that ranges from cut-

ting-edge techniques in the real estate sector to sessions

on learning how to handle digital tools.

– Cross-company: Training for all employees on Gmp po-

licies and general business, such as training on health and

safety, wellness, risks in the workplace, Code of Conduct or

welcome pack.

– Technical: programmes adapted to the employee’s post

to cover the specific needs of their day-to-day functions.

– Skills training: training in soft skills, which are consi-

dered essential to be successful in a professional environ-

ment, as well as for personal development. This training

equips employees with the skills they need to make them

more competitive in the labour market. These courses in-

clude improving presentation, communication, language

and social media techniques.

In 2019 a total of 19,782 training hours were organised,

distributed among the various training actions set down in

the Plan.

Through its commitment to talent development through a culture based on merit, accor-

ding to skills and performance of job functions, fair pay and training of employees, the

Company makes a substantial contribution to this SDG.

1 0 6 1 2 1


Gmp has a performance review policy that establishes

the annual assessment process for all employees of the

Group. The aim is to assess professional competences

according to the market and Company requirements,

as well as by category or staff level. For this purpose,

the Company uses the assessment system, “People

Review”, which was renewed in 2018 and includes the

incorporation of a new platform to make it easier to ma-

nage. The procedure gives employees the opportunity to

have an annual feedback meeting, where all competen-

ces they have developed in different projects over the

year are analysed.

In general terms, the results obtained are very positive,

Gmp continues to work to identify all the areas of impro-

vement of this process in order to continue driving talent

management.

98% of the team receive periodic performance reviews,

excepting the three Chair positions in the Directors ca-

tegory.

Performance Review

Women Men

% employees who have received regular performance review and professional development (Emp-Dev)

100% 96%

Category %

Directors and managers9 5%

Middle managers and technicians -15%

Administrative staff 1%

Other jobs -17%

Directors8 and managersMiddle managersand technicians

Administrative staff

Other jobs

% employees who have received regular performance review and professional development (Emp-Dev)

96% 100% 100% 100%

Gmp considers the remuneration policy a fundamental part

of its business strategy, an essential tool for motivation and

retention, and fair compensation for the services and dedi-

cation shown by personnel with the aim of uniting the inter-

ests of the Company and those of its employees.

Moreover, Gmp believes that the right remuneration policy

has a positive impact on its business and on the common

good of its shareholders. Based on this, the general princi-

ples of Gmp’s remuneration policy are as follows:

– Attracting and retaining the best professionals.

– Overseeing internal fairness and external competitive-

ness.

– Creating value in the long and medium term.

– Rewarding achievement (based on the cautious and res-

ponsible assumption of risks).

– Rewarding level of responsibility and professional career.

– Being fair and objective, using market salaries as a ben-

chmark.

– Ensuring maximum transparency in remuneration policy.

All these principles seek to contribute to the creation of va-

lue, which are reciprocal for the company and the emplo-

yee.

In addition, due the nature of its business and the sector it

operates in, the remuneration strategy, places the Company

at the same salary level as the leading companies in the

sector at a national level. For this it uses a market bench-

mark via analysis carried out well-reputed companies, lea-

ders in the remuneration consulting sector.

There are factors that affect salary distribution with the

same band such as the composition of the Company’s

workforce, differences in functions among corporate and

business posts or job performance. The salary band ope-

ning of a 20% margin, enables us to situate the different

posts in competitive positions both inside and outside the

Company. This model sets out fairness criteria between si-

milar work categories, with the aim of avoiding differences

in the remuneration of workers due to gender or any other

form of discrimination.

For the reasons mentioned above, the data on salary di-

fferences by gender at Gmp, align with the context of the

Company and its sector.

In the categories of Directors and managers there is a

deviation of 5% in favour of women, this deviation can

be understood within the normal standards of fair pay. In

the case of Middle Managers and Technicians there is a

discrepancy of 15% for men, this is due to the fact that

in 2 out of 5 companies in the Group, Colinas Green Golf

and InPlania, there is a low level of female presence in the

Technician category. The nature of the business in these

two companies are sports and golf course maintenance

and construction respectively, where there is a higher

proportion of male workers.

In the case of Administrative Staff salary equity is prac-

tically full, in contrast, in the category other jobs, like in

Middle Managers and Technicians, there are more men

in business posts than women and remuneration shows a

deviation of 17% in favour of the former.

The 20% margin of deviation in the salary band in the

Group’s remuneration strategy is fulfilled in all cases.

Finally, within the remuneration policy, it is worth

highlighting that 100% salary is paid during sick leave.

Remuneration Policy

8 The category of Directors includes the Executive Committee.

9 Does not include the Executive Committee.

1 2 2 1 2 3


5.3.3. Employee satisfaction

Every three years, Gmp carries out workplace climate sur-

veys on its employees in order to pinpoint staff concerns

or worries, as well as ascertain their degree of satisfaction

and insights.

The aim of the survey is to measure the general level of em-

ployee satisfaction and the workplace climate of the Com-

pany in order to improve the internal conditions and com-

petitiveness of the service offered to clients, identify areas

for improvement in the workplace and in the development

of the organisation and implement specific strategies and

action plans.

In 2018, a workplace climate questionnaire was conduc-

ted on the whole team. 82% of the staff took part and the

findings showed an overall level of satisfaction of 77out of

100 and, in particular, the competences valued the highest

within the Company were teamworking, leadership, enga-

gement and motivation.

While the Company’s satisfaction questionnaire is a key

channel to understand which actions should be strengthe-

ned and identify opportunities in personnel management,

monitoring of the turnover rate also indicates talent satis-

faction levels. In this regard, the workforce has a low tur-

nover, hence the findings are considered to be in line with

those obtained in the 2018 climate survey.

Gmp bets on a work/life balance as a key part of retaining

and attracting talent. For this purpose, it offers a range of

initiatives associated with its values that enhance engage-

ment, satisfaction and the productivity of its employees.

Gmp offers a flexible work policy to equip employees with

the tools that enable them to distribute their working day

according to their needs and strike a work/life balance.

Moreover, in relation to maternity and paternity leave, in

2019 all persons entitled to parental leave took it, this com-

prised two employees on paternity leave and one on mater-

nity leave, three in total. The return rate was 100%, as all

three returned to work after parental leave.

Gmp’s social benefits policy provides its employees with

benefits other than financial reward, such as flexible pa-

yment and life insurance. Within this package it is worth

highlighting Gmp’s commitment to the health and wellbeing

of its employees, as this provides them and their spouses

and children with a healthcare insurance cover 100% free

of charge. Finally, it is worth highlighting that, aligned to its

commitment to people and environment responsibility, in

2019 Gmp offered to finance 100% of the transport costs

of employees who travel to work on public transport.

A work/life balance for employees that promotes human and social development of people,

is a priority at Gmp in order to strengthen decent work and economic growth.

Under the age of 30 30 to 50 Over 50

Number of outgoing employees (Emp-Turnover)

1 9 1

Turnover rate11 (Emp-Turnover) 6% 10% 17%

Emp-Turnover Directors12 and managersMiddle managersand technicians

Administrativestaff

Otherjobs


1 3 1 6

Turnover rate13 (Emp-Turnover) 5% 5% 5% 18%

Women Men Total


4 7 11

Turnover rate10 (Emp-Turnover) 8% 9% 8%

5.3.4. Team health and safety

The health and safety and wellbeing of people is part of

Gmp’s strategic vision. The Company has a Health and

Safety Management System, certified by Standard OHSAS

18001:2007. This enables Gmp to identify the risks and

define the controls needed in terms of health and safety, as

well as establish responsibilities for this area inside Gmp.

As part of the system, the Company establishes the guide-

lines and directives on health and safety in its Integrated

Policy on Quality, the Environment and Health and Safety,

which involves all employees in the management of health

and safety at the Company. This policy includes the fo-

llowing:

– Compliance with existing legislation and commitments

endorsed by Gmp.

– Commitments regarding the appropriate measures to

be taken to prevent damage to and the deterioration of the

health of employees through a dedicated department for

Hazard Prevention in the Workplace.

– Assessing, classifying and minimising the significant

impacts of business activity by adopting Hazard Prevention

processes and planning in the workplace.

As part of the Company’s commitment to health and safety,

annual reviews are carried out by external technicians spe-

cialising in Hazard Prevention in the Workplace, in order to

ascertain any potential risks at Gmp’s assets, this includes

the portfolio of properties where employees of the Com-

pany work and in its corporate offices.

Gmp works to ensure the health and safety of employees through a respectful working

environment and by implementing a Management System and Hazard Prevention in the

Workplace.

10 Turnover rate is the number of outgoing employees in the company over the total workforce.11 Turnover rate is the number of outgoing employees in the company over the total workforce.12 The category of Directors includes the Executive Committee.13 Turnover rate is the number of outgoing employees in the company over the total workforce.

The department of Hazard Prevention in the Workplace

carries out periodic monitoring of the main indicators on

accident rates. For this purpose, it has drawn up an incident

reporting procedure, which provides instructions on how to

act in these circumstances and outlines the investigation

process for accidents and incidents. The main figures for

the year are reported below14:

In addition, there have been no cases of occupational disease identified.

Health and safety indicators

2018 2019

Number of workers 65 67

Total hours worked 113,750 117,250

Accidents at work with leave 0 1

Frequency rate15 (H&S-Emp) 0 8.53

Severity Rate16 (H&S-Emp) 0 0.12

Days lost due to absenteeism 165 236

Absenteeism rate17 (H&S-Emp) 0.14 0.20

Further to these yearly reviews, Gmp hires an external

company each semester to review installations at its buil-

dings. The aim of these reviews is to monitor established

improvement measures and identify opportunities for fur-

ther improvement.

Any risks identified in the aforementioned reviews are

communicated to the department for Hazard Prevention at

Gmp. This department oversees management in this area,

as well as monitoring the indicators associated with health

and safety performance and action plans.

As mentioned above, the policy involves all employees in

the management of health and safety at Gmp. Training is

an essential tool to help guarantee the safety of workers

both inside and outside its workforce. For this purpose, all

employees at Gmp received training in 2019 on health and

safety matters, aligned to the position they hold. It is worth

noting that training on how to use defibrillators was given

to external workers that carry out activities with this equip-

ment inside the Company’s buildings.

Gmp goes beyond health and safety and strives to promo-

te the wellbeing of its employees through promoting good

habits and sporting activities. Among other actions, it faci-

litates access to physiotherapy services and sports facili-

ties, such as a gym and paddle tennis courts, available to

employees.

Gmp takes responsibility for implementing environmen-

tal management that minimises negative impacts on the

environment, promoting environmental good practice

across its portfolio of buildings.

This commitment is manifested through the Group’s

Integrated Management Policy, which includes the En-

vironment, Quality and Health and Safety in the Work-

place and serves as the foundation of environmental

management.

The Environmental Management System is certified ac-

cording to standard UNE-EN-ISO 14001:2015 in Gmp’s

office buildings and business parks, with the aim of mi-

nimising its carbon footprint, as well as improving the

wellbeing of occupants.

Aligned with the Management System, assessment is

carried out on all environmental aspects, according to

the critical nature of the associated environmental im-

pact, taking into account direct and indirect aspects, as

well as normal, abnormal and emergency conditions.

Gmp concentrates on minimising and controlling spe-

cific environmental aspects and this is reflected in its

environmental goals.

Gmp and the clients at its buildings both play an active

role in the environmental management of buildings. Gmp

attempts to manage activities over which it has control in

an efficient way. For aspects over which it does not have

control, the Company makes manuals and awareness

campaigns available to clients so that they can take, as

far as possible, decisions that protect the environment.

As part of its Environmental Management System, Gmp

has created a manual for clients and users of its office

spaces. This document includes guidelines seeking to

raise awareness and help them manage and minimise

the impact of environmental aspects associated with the

offices they occupy. This manual focuses on the key as-

pects managed at Gmp’s buildings: energy, water and

waste. There is also a manual of good practices available

to clients who decide to carry out fit out work in Gmp’s

office spaces.

Also, within its Environmental Management System,

Gmp has operational control procedures to manage en-

vironmental aspects, which identifies systematic actions

in controlled conditions aimed at minimising environ-

mental impact.


Environmental aspect Environmental aspect generator Environmental aspect manager

Fuel consumption Generation of hazardous waste

Generation of non-hazardous waste

Water consumption

Sanitary water waste

TOILETS

MAINTENANCE/ CLEANING FACILITIES

Gmp and clients

Gmp

BOILERS

TOWERS/ROOFTOPSEnergy consumption

Generation of urban waste

COMMON USES

14The information reported covers the perimeter of Gmp’s assets.15 Number of occupational contingency processes with leave, excluding accidents in itinere and relapses, occurring during the working day, per million hours worked by workers exposed to risk.16 Number of days lost per 1,000 hours of work. Relapses are included and in itinere processes are excluded.17 Percentage of days lost over those foreseen in the period.

1 2 4 1 2 5


In order to implement Gmp’s commitment to ongoing

improvement as regards its carbon footprint, the Com-

pany sets yearly targets associated with the management

of energy, water consumption and generation of waste.

It fulfils this commitment by implementing action plans

including specific measures. Examples of the measures

implemented to date are as follows: installing efficient

taps in order to optimise water consumption or repla-

cing lighting in the elevators for LED lighting which saves

electricity. In this respect, measures implemented at the

Oxxeo building are worth highlighting, where systems to

monitor energy consumption in real time were installed.

In addition, Gmp runs a yearly training and awareness

programme to inform and raise awareness among em-

ployees about the need and importance of acting accor-

ding to the procedures set down in the Environmental

Management System and of observing good environ-

mental practices.

It is worth highlighting that, in 2016, Gmp strengthened

its commitment to the environment, energy efficiency

and the comfort of people by obtaining LEED (Leaders-

hip in Energy and Environmental Design) certification in

most of its buildings.

Awarded by the US Green Building Council (USGBC),

LEED certification is one of the most prestigious building

sustainability rating systems at an international level. It

aims to promote green buildings that are cost-efficient

and comfortable for people to live and work in.

Implementation of this ambitious certification process in

its buildings started at the end of 2013 and has led to a

wide range of actions, such as implementing water and

energy saving measures, optimising the office interior

environment, creating parking spaces for efficient vehi-

cles, carpooling and bicycles, as well as adopting spe-

cific measures regarding the materials used and waste

management for all improvement and renovation work

at properties.

Buildings account for 40% of final energy consumption

in the European Union, for this reason, reducing energy

consumption and using energy from renewable sources

in the building industry are important measures in order

to reduce greenhouse gas emissions.

Gmp works day by day to reduce the level of energy con-

sumption and emissions generated in its building portfo-

lio and corporate offices.

At Gmp, the main source of CO2 emissions is electricity

consumption, hence, the principal measures implemen-

ted are associated with the consumption of green ener-

gy and reduction of electricity consumption. It is worth

highlighting that since May 2018, all electrical energy

that Gmp is responsible for purchasing in common and

private areas comes from 100% renewable sources.

5.4.1. Climate change and energy efficiency

Gmp contributes in a positive way to SDGs 7 and 13 through

its commitment to combating Climate Change, as well the

creation of environmentally sustainable spaces, through using

low-carbon and renewable energies, promotion of energy saving

and efficiency, application of new technologies and sustainability

certifications for its buildings.

1 2 6 1 2 7

Gmp implements annual emission reduction plans with

the aim of lowering electricity and fuel consumption, most

of these actions are usually promoted through maintenan-

ce plans at buildings:

– Photovoltaic panels on building rooftops fully renovated

and in the new developments for electricity generation and

thermal solar panels for sanitary hot water production.

– LED technology (Light-Emitting Diode): replacing halo-

gen lighting for LED lighting in the common areas of buil-

dings and in cordoned off areas of office spaces. Imple-

menting this measure saves 90% in energy consumption.

It also avoids the infra-red or ultra-violet radiation emis-

sions and promotes mercury-free technology.

– Presence detectors or lighting timers for toilets to gene-

rate electricity consumption savings.

– Recharge points for electric vehicles in building car

parks: at the time of writing this report, these charge

points have been installed in Oxxeo, Castellana 81, Caste-

llana 77, Luchana 23, Iberia Mart I and II, Eloy Gonzalo 10

and the business park Parque Norte.

– Information campaigns on the rational use of energy in

common areas.

As a result of these actions, fuel consumption in Gmp’s

portfolio dropped by 3% in 2019. It is worth highlighting

that the Company tries, as far as possible, to electrify its

portfolio to lower use of fossil fuels.

The Group calculates direct emissions that come from

sources belonging to or controlled by Gmp (scope 1) and

indirect emissions from electricity consumed (scope 2).

The Group has calculated the carbon footprint from sco-

pe 1 based on the energy consumption of buildings and

leakage and recharging of refrigerant gases. For scope 2,

emissions are calculated following two criteria: location

based and market based.

In this report, as stipulated by the EPRA standard, energy

and electricity consumption at the corporate offices and

the Company’s building portfolio is shown separately. In

the latter, the comparison is shown in both absolute terms

and Like-for-Like.

Electricity consumption

Scope 1 emissions

Fuel consumption

9,307

Scope 2 emissions

2019

2018

2019

2018

Portfolio energy consumption like-for-like (MWh)

Portfolio CO2-equivalent emissions like-for-like (TnCO2eq)

11,849

9,598

11,596

1,061

2,097 929


a) Emissions and energy consumption at Gmp’s corpo-

rate offices.

Gmp’s corporate offices have not changed in terms of

surface area, however, electricity consumption at these

offices has been reduced as a result of awareness cam-

paigns aimed at employees. Moreover, since May 2018,

the entire electricity supply at the corporate offices co-

mes from renewable sources. The fact that the electricity

supply comes from clean energies and that refrigerant

gases have not been employed in the building, reduced

the carbon footprint (scope 1 and 2) of the corporate

offices in 2019 to zero.

In addition, the offices are not located in areas with a

heating and cooling district network, which means that

heating and cooling comes from the same electricity

supply as other consumption in the building.

2019

2018

Electricity consumption at Gmp's corporate offices (MWh)

Units of measure Variation 2018 2019

Above-ground surface m2 0% 1,751 1,751

Electricity consumption (Elec-Abs) MWh -7% 86 80

Total heating and cooling consumption of the district network (DH&C-Abs)

MWh - 0 0

Adjusted energy intensity18 (Energy-Int) MWh/m2/year -7% 0.046 0.049

Direct emissions (Scope 1)19 (GHG-Dir-Abs) TnCO2eq - 0 0

Indirect emissions location based(Scope 2)20 (GHG-Indir-Abs)

TnCO2eq -100% 7 0

Indirect emissions market based(Scope 2)21 (GHG-Indir-Abs)

TnCO2eq -100% 8 0

Emission intensity22 (GHG-Int) TnCO2eq/m²/year -100% 0.0039 0

1 2 8 1 2 9

86

80

b) Portfolio of buildings managed by Gmp

The scope of information on environmental performance

of the portfolio covers common areas at the buildings over

which Gmp has management control, excluding buildings

with a single tenant. The common areas include spaces of

free common use, as well as spaces dedicated to installa-

tions or infrastructure at the buildings: the HVAC system

at the building (cooling and heating equipment and refri-

geration towers), pumps, elevators, lighting in all common

areas and car parks. Finally, the following should be taken

into account:

– Since May 2018, all common areas at multi-tenant

buildings use electricity from a renewable source.

– In 2019, the Oxxeo building started to generate re-

newable photovoltaic electricity.

– Buildings are not located in areas with a heating and

cooling district network, which means that the heating and

cooling supply comes from the same electricity supply as

all other consumption at the building.

Property portfolio energy and emissions like-for-like Scope23 Units of measure Variation 2018 2019

Above-ground surface24 8 out of 8 m2 0% 226,933 226,933

Adjusted surface above ground25 8 out of 8 m2 6% 196,678 209,081

Fuel consumption26 (Fuels-LfL) 8 out of 8 MWh -3% 9,598 9,307

Electricity consumption (Elec-LfL) 8 out of 8 MWh 2% 11,596 11,849

Share of renewable energy consumption27 (Elec-LfL) 8 out of 8 % - 63 100

Total heat and cold consumption of the district network (DH&C- LfL) 8 out of 8 MWh - N/A N/A

Total energy consumption28 8 out of 8 MWh 0% 21,194 21,156

Energy intensity29 (Energy-Int) 8 out of 8 MWh/m²/year 0% 0.093 0.093

Adjusted energy intensity30 (Energy-Int) 8 out of 8 MWh/m²/year -6% 0.108 0.101

Scope 1 direct emissions31 (GHG-Dir-LfL) 8 out of 8 TnCO2eq -9% 2,097 1,911

Scope 2 indirect emissions32 location based 8 out of 8 TnCO2eq -100% 929 0

Scope 2 indirect emissions33 market based 8 out of 8 TnCO2eq -100% 1,061 0

Emission intensity34 (GHG-Int) 8 out of 8 TnCO2eq/m²/year -38% 0.013 0.008

Adjusted emission intensity35 (GHG-Int) 8 out of 8 TnCO2eq/m²/year -41% 0.016 0.009

18 The occupancy rate of Gmp's offices is 100% for these two years. For this reason, there is no difference between the energy intensity calculated on the total area and that calculated on the area adjusted to occupancy.19 Scope 1 direct emissions from Gmp's offices include fuel consumption and consumption of refrigerant gases. In the last two years there has been neither fuel consumption nor leakage of refrigerant gases.20 Scope 2 refers to electricity consumption at Gmp's corporate offices. Consumption from the building's common areas is not included in this scope, since it is included in the calculation of the property portfolio.21 Scope 2 refers to the electricity consumption at Gmp's corporate offices. Consumption from the building's common areas is not included in this scope, since it is included in the calculation of the property portfolio.22 The occupancy rate of Gmp's offices is 100% for these two years. For this reason, there is no difference between the energy intensity calculated on the total area and that calculated on the area adjusted to occupancy.

23 The buildings consolidated in the Like-for-Like scope are: Luchana 23, Génova 27, Iberia Mart I & II, Parque Norte, Castellana Norte, Castellana 81, Castellana 77 and Condesa de Venadito 1.24 Total surface area above ground.25 Total area above ground adjusted to the occupancy rate of the reported year.26 Natural Gas and Diesel Consumption. There is no consumption of fuel from renewable sources.27 Share of electricity consumption from renewable sources in the total.28 This is the sum of fuel and electricity consumption of the buildings.29 Intensity calculated with total energy consumption regarding total surface.30 Intensity calculated with total energy consumption regarding total area adjusted to occupancy.31 Scope 1 direct emissions from Gmp's buildings includes fuel consumption and refrigerant gases.32 Emissions calculated with the emission factor from the Spanish electricity mix.33 Emissions calculated with the specific emission factor of the contracted electricity trader.34 Intensity calculated with total emissions Scope 1 and 2 location based regarding total area.35 Intensity calculated with total emissions Scope 1 and 2 location based regarding total area adjusted to occupancy.



5.4.2. Circular economy

The circular economy aims to extract maximum value and

use out of raw materials, products and waste, thereby pro-

moting energy savings and reducing greenhouse gas emis-

sions. This model gives companies the opportunity to be

more competitive and sustainable, with the potential to ad-

dress environmental challenges, while delivering economic

value and growth.

In order to optimise the consumption of resources and pro-

mote the return of raw materials to the production cycle,

Gmp focuses on purchasing materials and efficient mana-

gement of properties and waste. Gmp implements mea-

sures to improve the ecoefficiency of properties, mainly

through preventative maintenance and renewing equip-

ment with more efficient models. When renovation work is

carried out at buildings, waste is separated properly to en-

sure that as much as possible can be recycled or reused.

Energy, water and building materials are the resources

Gmp consumes the most. However, energy consumption

was discussed in the previous section on climate change

and energy efficiency.

Gmp takes responsibility for the environmental impact caused by its business activities

where it operates and works to protect and respect the environment as part of Company

culture, as well as through the efficient use of resources and processes throughout the

value chain, thereby creating sustainable cities and communities.

Water consumption comes from the public network and

is mainly for sanitary use and to a lesser extent for HVAC

systems. Gmp’s portfolio is located in Madrid, an area that

is not classified as an area of water stress. Nonetheless,

the Company implements specific measures to generate

sanitary cold water consumption savings, as well as infor-

mation campaigns about the rational use of water in toilets

in buildings.

Gmp has an annual training and awareness plan to in-

form and raise awareness of employees about the need

and importance of following the procedures set down in

the Environmental Management System and of observing

environmental good practices.

Aligned with this, during 2019 a policy aimed at employees

and users was approved to eliminate the consumption of

single-use plastics at Gmp’s offices and Meeting Places in

its buildings. The policy was drawn up through identifying

all the elements that generate plastic consumption (bott-

les, glasses, ballpoint pens, tableware, catering containers,

among others) for which alternative plastic-free elements

were selected. To complement this, Gmp produced and

informed employees and clients of its plastics reduction

policy.

Moreover, the construction materials from work carried out

by Gmp on its buildings has an important environmental

impact within the Company’s business activity. For this

reason, Gmp has implemented an identification and as-

sessment system for 100% of materials used in office fit

outs, which guarantees that they comply with the required

environmental and sustainable criteria.

The increase in water consumption is due to an increase in tenant occupancy at Gmp’s assets.

a) Absolute water consumption in Gmp’s corporate offices.

b) Water consumption at Gmp’s portfolio of buildings.

Water consumption

Materials used

Units of measure Variation 2018 2019

Water consumption36 (Water-Abs) m3 10% 947 1,043

Water intensity37 (Water-Int) m3/ m²/year 10% 0.54 0.59

Portfolio energy consumption like-for-like (m3)

2019

2018

111,297

98,533

36 100% of water consumption is supplied by the public network in Madrid.37 The occupancy rate of Gmp's offices is 100% in the two years. For this reason, there is no difference between the water intensity calculated on the total surface area and the total surface area adjusted to its occupancy.38 The buildings consolidated in the Like-for-Like scope are: Luchana 23, Génova 27, Iberia Mart I and II, Parque Norte, Castellana Norte, Castellana 81, Castellana 77 and Condesa de Venadito 1..39 100% of water consumption is supplied by the public network in Madrid.40 Intensity of water consumption regarding total surface area.41 Intensity of water consumption regarding total surface area adjusted to occupancy.

Property portfolio water consumption like-for-like Scope38 Units of measure Variation 2018 2019

Water consumption39 (Water-LfL) 8 out of 8 m3 13% 98,533 111,297

Water intensity40 (Water-Int) 8 out of 8 m3/m2/year 13% 0.43 0.49

Adjusted water intensity41 (Water-Int) 8 out of 8 m3/m2/year 6% 0.50 0.53

Oxxeo

1 3 11 3 0


As regards waste management, the bulk is generated in

work on buildings and are managed in all instances by

authorised third parties.

In order to manage waste properly, Gmp follows a pro-

cedure to identify, manage and control waste generated

through allocation of responsibility of functions.

In 2019 the Group generated around 1,700 tonnes of ha-

zardous and non-hazardous waste, principally building

materials used to fit out offices and common areas in

buildings. The quantity of non-hazardous waste increased

considerably in comparison to 2018, as a larger surface

area was fitted out for offices and major conservation work

was carried out over the year.

The consumption of materials in 2019 during developments is shown below:

Waste management

Building Materials Units of mesure Quantity

Ceramic Kg 26,695

Wood Kg 25,517

Plaster Kg 12,350

Metal Kg 5,077

Cement Kg 2,803

Mineral Fiber Kg 2,156

Bitumen Kg 2,713

Property portfolio waste management like-for-like Units of mesure Variation 201842 201943

Hazardous waste (Waste-LfL) Tn -70 7.7 2.4

Recovery % - 53% 98%

Disposal % - 47% 2%

Non-hazardous waste (Waste-LfL) Tn -44 103 1.696

Recovery % - 2% 99%

Disposal % - 98% 1%

1 3 2

Type of treatment for hazardous in 2019

98% 99%

2% 1%

Recovery Recovery

Disposal Disposal

Hazardous waste Non-Hazardous waste

5.5. Community engagementGmp makes a strong commitment to the economic and

social development of the community. It contributes to the

social development of the areas where it operates in diffe-

rent ways: contributing by paying taxes, promoting equal

opportunities, hiring local employees, suppliers and con-

tractors or carrying out social projects for the benefit of

society, principally through the Gmp Foundation.

In 2019, Gmp’s business generated a value of 16,494

thousand euros for society. In addition, it should be

highlighted that the Company donated 424 thousand eu-

ros to its Foundation in 2019 to enable it to develop its

activities.

While Gmp channels most of its contribution to society

through the Foundation, it is worth noting that in 2019 it

started to take part in the Renazca Plan. The aim of this

plan is to renovate, maintain and dynamise the business

area of AZCA in coordination with Madrid Town Hall. Gmp

and Merlin Properties have created Renazca S.A. to serve

as a vehicle to finance this project.

Moreover, since 2019 Gmp’s work hours policy enables

employees to dedicate 8 hours from their working sche-

dule every year to the Company’s voluntary programmes.

These contributions enable the Company to help meet the

Sustain Development Goals (SDGs), promoted by the Uni-

ted Nations.

Financial data 2019 (thousands of euros)

Direct economic value generated 134,164

Economic value distributed among suppliers, employees, financial institutions, administrations and investments in the community

117,670

Economic value retained 16,494

42 The buildings consolidated in the 2018 perimeter are: Luchana 23, Génova 27, Iberia Mart I and II, Parque Norte, Castellana Norte, Castellana 81, Castellana 77, Condesa de Venadito 1 and Barajas 1.43 The buildings consolidated in the 2019 perimeter are: Luchana 23, Génova 27, Iberia Mart I and II, Parque Norte, Castellana Norte, Castellana 81, Castellana 77, Condesa de Venadito 1 and Oxxeo.44 The variation has been over 100% due to the fact that in 2019 there has been an action that has generated a greater amount of waste.

AZCA: Castellana 81 and Castellana 77


Gmp carried out efficient and responsible management

of all purchasing in different areas. Through developing

purchase management, optimisation and control tools it

works within the framework of the Sustainable Develop-

ment Goals (SDGs). In 2019, the Group developed:

Provides better information and budget control of purchases made.

Although still in implementation phase, this purchase platform aims to make the whole proce-

dure virtual, from the identification of a need to supplier payment.

Procedure to approve the contracting and purchase of material services over 30,000 euros.

Aimed at improving purchasing efficiency and increasing control over the same, as well as

identifying synergies and limiting spending.

The main purchase processes are associated with building

work, maintenance (security, cleaning…) and professional

services (auditors, surveyors, notaries, registrars, etc.).

Share of suppliers by type % Purchase volume (thousands of €) %

Professional services 11% 5,150 9%

Work services 16% 29,112 50%

Maintenance services 14% 17,688 31%

Other services 58% 5,937 10%

Total 100% 57,886 100%

5.5.1. Responsible supply chain management

Safeguarding objective, unbiased and transparent treatment in hiring suppliers, adopting

responsible practices in supply chain management and promoting economic growth in the

community where Gmp operates.

New asset management tool

Procure to Pay Tool

Purchase desk procedure

0 0

Gmp bets on local suppliers to be able to generate value

in the community where it operates. In 2019, 98% of total

purchases were made locally45, reaching a purchase volu-

me of around 56,700 thousand euros.

Gmp carries out annual reviews on its suppliers. For this

purpose, it has a specific procedure where it sets down the

guidelines for supplier assessment in order to guarantee

that they are capable of supplying products or providing

services at the level of quality required by the organisation

and considering the legal requirements in terms of preven-

tative matters and environmental protection.

Mindful of its social responsibility, the Company extends

the commitments and principles in its Ethical and Legal

Compliance Code to its suppliers. In this regard, it sets

down a series health and safety requirements for all its

suppliers, particularly those that deliver services relating

to building work. In addition, if the service to be supplied

permits, the Company stipulates requirements of a social

nature in its contracts for suppliers and contractors (for

example: suppliers that employ disabled persons).

As regards the environment, in 100% of contracts with

third parties that supply building work services, the Com-

pany includes its Environmental Policy, as well as its Ma-

nual of Environmental Good Practices. In this way, the

suppliers with greatest environmental impact are subject

to the conditions and commitments that the Company sets

down. Moreover, Gmp assesses periodically the environ-

mental performance of these suppliers in relation to the

activities that they carry out in each of the buildings.

45 Gmp defines "local" supplier as the organisation or person who provides a product or service to Gmp with a Spanish VAT number, since this is the country where the Company operates.

Local suppliers

Supplier review

Local purchase volume(thousands of €)

Non-local purchasevolume

(thousands of €)

Total purchase volume(thousands of €) Local purchases %

56,699 1,187 57,886 98%

1 3 4

Manual of Environmental Policies

Lines of action and key projects in 2019

As part of the Company’s social commitment, at the end of

2008 the Gmp Foundation, a private non-profit organisa-

tion was set up with the main aim of developing actions fo-

cused on direct support, through economic or in-kind do-

nations, to organisations that work to improve the lives of

people with Intellectual Disability and/ or Acquired Brain

Injury (ABI) in Spain. Since its inception, the Foundation

has helped 49,901 people and donated 3,470,901 euros.

Rolling out strategies and action plans focused on meeting

this goal, as well its commitment and solidarity, led the

Gmp Foundation to take part in 24 social projects, be-

nefiting a total of 8,707 people directly, double the figure

for the previous year. The donations made over the year

amounted to 424 thousand euros and the Foundation co-

llaborated with 28 NGOs.

In 2019, the Gmp Foundation was awarded the Premio

Amigos by association APAMA.

Over 2019, in order focus its efforts the Foundation

defined 9 lines of action, highlighting the following key

projects due to their positive impact on the community.

5.5.2. Social Action

Promoting actions and initiatives with a positive impact in society and environment, either directly through the work of the Gmp Foundation. These actions seek to reduce inequalities and promote peace and justice.

Lines of action

Childcare

Senior care

Infrastructures

Equal Opportunities

Labour market

integration

Training and institutional

strengthening

Technology

Leisure, culture and sport

Networking

1 3 71 3 6

– Child Stroke Funding, Instituto Chárbel and Cáritas Dio-

cesana Jerez de la Frontera: support for the initiative run by

Cáritas Diocesana de Jerez de la Frontera (Cádiz) and the

Instituto Chárbel. The aim is to provide neurorehabilitation

treatment for children up to the age of 14 who have suffe-

red Acquired Brain injury (ABI) and come from low income

families. For this purpose, grants have been awarded to 5

families amounting to 25,000 euros.

– “Transforming Services”, a programme aimed at trai-

ning families of minors with intellectual disability in Early

Treatment and intensifying actions at home, in order to pro-

mote development and inclusion. During 2019, 190 chil-

dren aged 0 to 16 from the organisation Assido benefited

from this programme. This project was funded thanks to

funds raised at the tenth edition of the Grandes Ilusiones

International Fundraising Magic Festival in Murcia.

– Healthy Lifestyle Habits Programme of the Madrid

Down Syndrome Foundation, which seeks to create daily

guidelines for intellectually disabled persons from an early

age in order to promote development, independence and

active ageing. This project generated the opportunity to be-

nefit 513 people aged 0 to 50 and 50 families with intellec-

tually disabled members.

– Fit out and furnishing of the new Early Treatment Cen-

tre of the APSA Association in Alicante. The centre was

equipped with the bulk of the resources needed for the Sti-

mulation, Physiotherapy or Multi-sensory Treatment rooms,

among others. It is estimated that 724 minors aged bet-

ween 0 and 6 are currently benefiting from this initiative.

These two initiatives were possible thanks to the Dreamers

In White Concert, a unique event consisting of creating a

voluntary and ephemeral symphony orchestra through the

novel procedure of online videocasting.

700 musicians and choir members took part in the con-

cert, conducted by Ramón Torrelledó.

– Autism Commitment Programme: in 2019, the Gmp

Foundation created a new line focused on educators from

the Madrid Autism Federation and the AUCAVI Founda-

tion. The project sought to provide tools and strategies to

education professionals in the Madrid Region so that they

can meet the needs of Autism Spectrum Disorder (ASD)

minors both inside and outside the classroom.

With the medium-long term goal of creating a network of

centres in the Madrid Region, specialised in meeting the

educational needs of ASD minors more efficiently, in 2019,

a pilot programme was carried out at Real Colegio Nuestra

Señora de Loreto – Fundación Spínola. Through this initia-

tive all workers at the centre received specialised training

on the Autistic Spectrum and specific work areas for each

of participant. Finally, with the knowledge acquired, the

centre drew up a Cognitive Accessibility Plan, which will

serve as a reference document to identify the appropriate

treatment for all pupils with autism.

– 9th Fundraising Race for the Madrid Down Syndrome

Association: Gmp Foundation is one of the sponsors of this

initiative as part of its focus to sport. It also takes part in the

Inclusion Cup, the Fundraising Football Tournament orga-

nised by the APROCOR Foundation.

– Mujeres con valor: Gmp Foundation has helped launch

Down España’s project, aimed at combating the double

discrimination that women with intellectual disability suffer

in Spain. This initiative, which focuses on aspects such as

bullying at school, sexual abuse, forced sterilisations, cy-

berbullying, etc., includes creating a bullying prevention

manual, as well as running workshops from all over Spain

so that women with Down syndrome can recognise diffe-

rent situations of discrimination and aggression and learn

how to react to them. 100% of the funding for the pro-

ject came from the amount raised at the 20th Fundraising

Paddle Tennis Tournament for Companies, at which 38

companies and over 200 players took part.

– Magic Eagle: in 2019 Gmp Foundation and the Ma-

gic Eagle Association carried out a therapeutic programme

with birds of prey, which sought to develop emotional, cog-

nitive and social skills for persons with intellectual disability.

The beneficiary was the Alenta Association from Madrid.

Eight users from this organisation took part in five sessions.


– Temporary stay flat for ASD and serious behaviou-

ral problems from the organisation Aleph TEA: The Gmp

Foundation took part in funding the project to create a

temporary stay home for minors with Autism Spectrum

Disorder and serious behavioural problems, which aims

to improve cohabitation among youth with ASD and their

families. This is a brand-new initiative, which will involve

twelve young people every year from different organisations

from the Madrid region, and which also involved Plena In-

clusión Madrid, a federation of organisations that work to

improve living conditions of persons of intellectual disability

in the region.

– El Huerto de Dulcinea: this kitchen garden project aims

to promote labour market integration of adults by carrying

out occupational training activities related to horticulture

and horticultural products. This initiative, located in Molino

Occupational Centre, of the Aldaba Foundation in Alcalá

de Henares, serves a total of 85 persons with intellectual

disability in order to develop their skills to the full.

– Inclusión en la Montaña: for the second year running,

employees at the Gmp Group took part in this activity to

complete easy hiking trails in the company of organisations

that work to improve the living conditions of persons with

intellectual disability. On this occasion, the organisation

that enjoyed this activity was the APAMA Association from

Alcobendas (Madrid).

The Gmp Foundation publishes an annual report which

outlines all its activities in depth.

1 3 8 1 3 9

5.6. COVID-19The appearance of Coronavirus COVID-19 and its spread

to many countries across the world in the early months of

2020, has led to the viral outbreak being declared a pan-

demic by the World Health Organisation as of 11 March.

Taking into account the complexity of the circumstances

and the absence, for the time being, of efficient medical

treatment against the virus, the impact on operations at

the Gmp Group is uncertain and will depend, to a large

degree, on the evolution and spread of the pandemic

over the upcoming months, as well as on the reaction and

adaption of all agents affected.

For these reasons, at the time of writing this report it is

premature to provide a detailed assessment or quantify

the potential impacts that COVID-19 will have on the Gmp

Group, due to the uncertainty surrounding the short, me-

dium and long term consequences.

Notwithstanding, Gmp has carried out a preliminary as-

sessment of the current situation based on the best in-

formation available, although this report may be incom-

plete, as explained above. The following issues can be

highlighted from the findings of this assessment:

– Issues relating to personnel: Gmp has reinforced its

cleaning service in its private offices and has distributed

hand sanitiser dispensers in the meeting rooms, reception

and kitchen area for employees. In addition, it has taken

the actions needed to enable the workforce to work from

home while continuing to offer a quality service. Moreo-

ver, the Company is monitoring the state of health of its

employees and all necessary measures will continue to be

implemented to safeguard their wellbeing. A protocol has

been drawn up on employees resuming work at the office,

including carrying out training activities.

– Issues relating to clients and users: Gmp’s priority is

to provide safe and healthy spaces. For this reason, given

the new situation imposed by COVID-19, we have imple-

mented a rigorous programme of measures at our offices,

placing emphasis on:

- Promoting safe interpersonal distances.

- Reinforcing and optimising cleaning and disinfection

protocols in all common areas.

- Improving air quality inside buildings.

- Shutting down temporarily access to a number of

spaces.

- Informing about guidelines to prevent the spread of

the virus.

In addition, the Group has drawn up a Protocol for Ope-

ning the Golf Course, which outlines specific actions rela-

ting to users and facilities, in order make it safe to play golf

at Las Colinas Golf & Country Club. This Protocol is the

result of contributions from the Royal Golf Federation of

Spain (Real Federación Española de Golf - RFEG) and the

Regional Golf Federations (Federaciones Autonómicas de

Golf), Spanish Association of Golf Courses (Asociación Es-

pañola de Campos de Golf - AECG), Spanish Association

of Greenkeepers (Asociación Española de Greenkeepers -

AEdG), Spanish Association of Golf Managers (Asociación

Española de Gerentes de Golf - AEGG) and the Professio-

nal Golf Association (PGA). It also takes into account re-

commendations from international bodies from the world

of golf.

Finally, aligned with Gmp’s commitment to transparent

communication, it has established a protocol that inclu-

des:

- Informing all clients in the buildings of the existen-

ce of cases of COVID-19, immediately after the com-

pany where staff have been infected has notified this

to Gmp. This enables all companies in the building

affected to take the appropriate decisions in the fra-

mework of their action protocols.

- Corporate communications on the preventative mea-

sures plan against the spread of the disease in buil-

dings, which will also be accessible to clients on

Gmp’s corporate website.

Participants in the therapeutic programme with birds of prey.


- Information and awareness campaign on the corpora-

te website and in common areas in buildings.

- Maximum availability of all members of the Property

and Client Experience Department to respond to re-

quests and queries from clients relating to COVID-19

in the framework of their relations with Gmp.

In addition, in order to support and improve the experien-

ce of users at buildings during the confinement period,

Gmp Experience has rolled out initiatives to encourage

them to participate from home in cultural, sporting, leisure

and entertainment activities. All these activities have been

communicated through weekly newsletters and are posted

in the “events” section of the Gmp Smart app.

– Issues relating to society: demonstrating its com-

mitment to the wellbeing and health of people Gmp is coo-

perating actively with the fight against COVID-19. For this

purpose, it has donated funds to health institutions in the

Madrid region to purchase healthcare materials and help

provide supplies to hospitals and health centres across the

region.

Moreover, the Gmp Foundation is in direct contact with

the organisations that care for people with Down Syndro-

me and Acquired Brain Injury, compiling their demands

and adapting support to the new needs of these groups.

5.7. About this reportThe non-financial information on Gmp is part of the

2019 Annual Report. It shows the progress made in the

Company’s performance and its value chain as regards,

social and environmental issues and governance, com-

bined with all the information needed so that the reader

understands Gmp’s positioning and contribution to sus-

tainability. The financial year 2019 covered in this report

runs from 1 January 2019 through to 31 December 2019.

Scope and structure of the information reported

The information on CSR has been compiled based on all

the assets Gmp owns, except the residential tourism re-

sort Las Colinas Golf & Country Club in the chapter on

the environment (Chapter on Environmental Protection).

The quantitative and qualitative data in this chapter solely

refer to the property-owning business of the Group, as at

the time of writing this report the Company is working to

collect environmental information on this resort.

Moreover, whenever information is available, data relating

to 2018 has been included, so that the evolution of the

Company’s performance can be traced clearly.

In the presentation of quantitative data in the chapter on

the environment, consumption by the Group’s corporate

offices has been distinguished from those at its other buil-

dings, as required by EPRA reporting standard sBPR.

Bases for reporting

Standards considered:

Gmp’s 2019 Annual Report has been drawn up based on

two non-financial data reporting standards:

– GRI (Global Reporting Initiative) in its core option.

– EPRA (European Public Real Estate Association)

Recommendations Guidelines sBPR.

Reporting principles followed:

– Inclusion of stakeholders: the information contained

in Gmp’s 2019 Annual Report has been prepared mindful

of the expectations and needs of the Company’s stake-

holders.

Aligned to this, in the chapter ‘Innovation from sustainabi-

lity” Gmp’s stakeholders are identified, as well as the com-

munication channels through which it seeks to address

their expectations and interests.

– Materiality: before writing this Report, Gmp carried out

a materiality study to identify the most relevant issues for

the Company. This analysis covers all the aspects of envi-

ronmental, social and good governance issues that could

influence the Company and its stakeholders.

– Context: Gmp contributes to the wellbeing of the who-

le value chain: ranging from its clients and users through

pioneering management in the real estate industry to its

employees through talent attraction and retention policies.

Without forgetting the work of the Gmp Foundation, whose

contribution enables the Company to give back to society.

– Comprehensiveness: the contents included in the CSR

Report have been designed based on an initial identifica-

tion of the aspects that are material for Gmp and its stake-

holders. Throughout the report the coverage and scope

are indicated on the information reported.

1 4 1


Indicator EPRA code Units of measure 2018 Scope 2019 Scope Variation

Total surface area above ground N/A m2 256,208 100% 241,292 100% -6%

Adjusted total surface area above ground N/A m2 219,548 100% 220,761 100% 1%

Total electricity consumption

Elec-Abs

MWh 12,021 100% 12,585 100% 5%

Share of renewable energy consumption % 63 100% 100 100% N/A

Photovoltaic electricity consumption MWh 0 100% 65 100% 100%

Electricity consumption Elec-LfL MWh 11,596 8 out of 8 11,849 8 out of 8 2%

Total district heating & cooling consumption DH&C-Abs MWh N/A 100% N/A 100% -

Total district heating & cooling consumption DH&C- LfL MWh N/A 8 out of 8 N/A 8 out of 8 -

Total fuel consumptionFuels-Abs

MWh 10,112 100% 9,832 100% -3%

Share of renewable fuel consumption % 0 100% 0 100% 0%

Fuel consumption Fuels-LfL MWh 9,598 8 out of 8 9,307 8 out of 8 -3%

Total energy consumption N/A MWh 22,133 100% 22,482 100% 2%

Energy intensity of buildingsEnergy-Int

MWh/m²/year 0.086 100% 0.093 100% 8%

Adjusted energy intensity of buildings MWh/m²/year 0.101 100% 0.102 100% 1%

Direct emissions of greenhouse gases (Scope 1) GHG-Dir-Abs TnCO2eq 2,234 100% 2,017 100% -10%

Indirect emissions of greenhouse gases when generating energy - location based (Scope 2)

GHG-Indir-Abs

TnCO2eq 963 100% 0 100% -100%

Indirect emissions of greenhouse gases when generating energy - market based (Scope 2)

TnCO2eq 1,100 100% 0 100% -100%

Intensity of greenhouse gas emissions from buildings

GHG-Int

TnCO2eq/m²/year 0.012 100% 0.008 100% -33%

Adjusted intensity of greenhouse gas emissions from buildings

TnCO2eq/m²/year 0.015 100% 0.009 100% -37%

Total water consumption Water-Abs m3 105,403 100% 118,698 100% 13%

Like-for-like Water consumption Water-LfL m3 98,533 8 out of 8 111,297 8 out of 8 13%

Water intensity of buildingsWater-Int

m3/ m2/year 0.41 100% 0.49 100% 20%

Adjusted water intensity of buildings m3/ m2/year 0.48 100% 0.54 100% 12%

Total weight of waste by disposal route (Absolute)

Hazardous waste

Waste-Abs

Tn 8.2 100% 2.4 100% -71%

Recovery % 56% 100% 98% 100% -

Disposal % 44% 100% 2% 100% -

Non-hazardous waste Tn 103 100% 1,696 100% - *

Recovery % 2% 100% 99% 100% -

Disposal % 98% 100% 1% 100% -

Total weight of waste by disposal route (like-for-like)

Hazardous waste

Waste-LfL

Tn 7.7 8 out of 8 2.4 8 out of 8 -70%

Recovery % 53% 8 out of 8 98% 8 out of 8 -

Disposal % 47% 8 out of 8 2% 8 out of 8 -

Non-hazardous waste Tn 103 8 out of 8 1,696 8 out of 8 - *

Recovery % 2% 8 out of 8 99% 8 out of 8 -

Disposal % 98% 8 out of 8 1% 8 out of 8 -

Portfolio Environment EPRA tableIndicator EPRA code Units of measure 2018 2019 Variation

Total surface area above ground N/A m2 1,751 1,751 0%

Total electricity consumption Elec-Abs MWh 86 80 -7%

Total district heating & cooling consumption DH&C-Abs MWh 0 - 0%

Total fuel consumptionFuels-Abs

MWh 0 0 0%

Share of renewable energy consumption % 0 0 0%

Adjusted energy intensity of buildings Energy-Int MWh/m²/year 0.046 0.049 -7%

Direct emissions of greenhouse gases (Scope 1) GHG-Dir-Abs TnCO2eq 0 0 0%

Indirect emissions of greenhouse gases when generating energy - location based (Scope 2)

GHG-Indir-Abs

TnCO2eq 7 0 -100%

Indirect emissions of greenhouse gases when generating energy - market based (Scope 2)

TnCO2eq 8 0 -100%

Intensity of greenhouse gas emissions from buildings GHG-Int TnCO2eq/m²/year 0.0039 - -100%

Total water consumption Water-Abs m3 947 1,043 10%

Water intensity of buildings Water-Int m3/ m2/year 0.54 0.59 10%

Total weight of waste by disposal route Waste-Abs Tn N/A N/A -

Indicator EPRA code Coverage Unit 2018 2019

Type and number of certified properties

Cert-Tot 100%

Sustainability certifications

% portfolio surface with sustainability certificate 63% 73%

% portfolio surface LEED-certified 55% 69%

% portfolio surface LEED Gold-certified 42% 48%

% portfolio surface LEED Platinum-certified 13% 21%

% portfolio surface with BREEAM certificate 3% 3%

% portfolio surface with WELL certificate 11% 18%

% portfolio surface with WELL Gold certificate 11% 18%

% portfolio surface with DIGA certificate 18% 25%

% portfolio surface with DIGA 5 stars certificate 18% 21%

% portfolio surface with DIGA 2 stars certificate 0% 4%

Energy Efficiency Certifications

% portfolio surface with energy efficiency certificate 84% 100%

Number of A-rated assets 2 14

% A-rated portfolio surface 7% 94%

Number of B-rated assets 3 2

% B-rated portfolio surface 16% 6%

Number of C-rated assets 10 0

% C-rated portfolio surface 54% -

Number of D-rated assets 1 0

% D-rated portfolio surface 8% -

Environment EPRA table - Gmp corporative offices

Certified Asset EPRA table

INDEX EPRA CONTENTS

1 4 2 1 4 3


Environmental data notes

– The buildings consolidated in the 2018 perimeter in ab-

solute terms are: Luchana 23, Génova 27, Iberia Mart I and

II, Parque Norte, Castellana Norte, Castellana 81, Castellana

77, Condesa de Venadito 1 and Barajas 1.

– The buildings consolidated in the 2019 perimeter in ab-

solute terms are: Luchana 23, Génova 27, Iberia Mart I and

II, Parque Norte, Castellana Norte, Castellana 81, Castellana

77, Condesa de Venadito 1 and Oxxeo.

– The buildings consolidated in Like-for-Like scope are:

Luchana 23, Génova 27,Iberia Mart I and II, Parque Norte,

Castellana Norte, Castellana 81, Castellana 77 and Condesa

de Venadito 1.

– Adjusted above-ground area refers to the total above-

ground area adjusted to the occupancy rate of the reported

year.

– Fuel consumption: this refers to the consumption of Na-

tural Gas and Diesel oil. There is no fuel consumption from

renewable sources.

– The proportion of electricity consumption from renewable

sources is indicated in relation to total electricity consump-

tion.

– The total energy consumption is the sum of the fuel con-

sumption of conventional and renewable electricity in the

buildings.

– The energy intensity of buildings and offices has been

calculated with the total energy consumption (sum of fuel

consumption, conventional and renewable electricity) over

the total area.

– The adjusted energy intensity of the buildings: it has been

calculated with the total energy consumption (sum of fuel

consumption, conventional and renewable electricity) in re-

lation to the total area adjusted to occupancy.

– Scope 1 direct emissions from Gmp's buildings include

fuel consumption and refrigerant gases.

– Scope 2 indirect emissions with location-based criteria

from Gmp's buildings and offices are calculated using the

emission factor from Spain's electricity mix.

– Scope 2 indirect emissions with market-based criteria

from Gmp's buildings and offices are calculated with the spe-

cific emission factor of the contracted electricity supplier.

– Emission intensity of buildings and offices: calculated with

the total emissions of Scope 1 and 2 with location-based cri-

teria in relation to the total surface area.

– Adjusted emission intensity of buildings and offices: cal-

culated with the total of scope 1 and 2 emissions with lo-

cation-based criteria in relation to the total area adjusted to

occupancy.

– 100% of water consumption in offices and the portfolio

comes from the public network in Madrid.

– Adjusted water intensity of buildings and offices has been

calculated with the water consumption of the buildings over

the total area.

– Adjusted water intensity of the buildings and offices has

been calculated with the water consumption of the buildings

in relation to the total area adjusted to the occupancy.

– (*)The variation in non-hazardous waste between 2018

and 2019, in terms of Like-for-Like and Absolute, has been

more than 100% due to the fact that in 2019 there has been

an action that has generated a greater amount of waste in a

timely manner.

– The occupancy rate of Gmp's offices is 100% in the two

years reported. For this reason, there is no difference bet-

ween the energy intensity calculated with the total area and

that calculated with the area adjusted to occupancy.

– Scope direct emissions from Gmp's offices include fuel

consumption and consumption of refrigerant gases. In the

last two years there has been neither fuel consumption nor

gas leaks.

– Scope 2 indirect emissions in Gmp's offices are those

derived from the electricity consumption of the corporate offi-

ces. Consumption from the building's common areas is not

included in the scope, since it is included in the calculation of

the property portfolio.

Indicator EPRA code Scope Units of measure 2018 2019

Composition of the Board of Directors Gov-Board Corporation

Number of executive board members 5 5

Number of independent board members 1 1

Average tenure 13.1 13.1

Number of competencies relating to environmental and social topics

0 0

Number of independent / nonexecutive board members with competencies relating to environmental and social topics

Gov-Select Corporation Description - -

Conflicts of interest Gov-Col Corporation Description - -

Accident rate

H&S-Emp Corporation

By hours worked 0 8.53

Lost days By hours worked 165 236

Severity index By hours worked 0 0.12

Absentee rate Ratio of days off work/total days worked 0.14% 0.2%

Fatalities Total number 0 0

Health and Safety Impact Assessments H&S-Asset Corporation% of assets where health and safety actions are carried out

94% 100%

Number of failures to comply H&S-Comp CorporationNumber of failures to comply with health and safety regulations

0 0

Community engagement programmes Comty-Eng Corporation% of assets that have been involved in programs with social environment

60% 60%

Employee gender diversity Diversity-Emp Corporation% male employees N/A 61%

% female employees N/A 39%

Remuneration by gender Diversity-Pay Corporación

Ratio by category

% Directors and managers N/A 5%

% middle managers and technicians N/A -15%

% Administrative staff N/A 1%

% Other jobs N/A -17%

Employee training and development Emp-Training CorporaciónAverage number of training hours for men N/A 112

Average number of training hours for women N/A 210

Employee performance appraisals Emp-Dev Corporación

% of men in the workforce N/A 96%

% of women in the workforce N/A 100%

% Directors and managers N/A 96%

% Middle managers and technicians N/A 100%

% Administrative staff N/A 100%

% Other jobs N/A 100%

Social & Governance EPRA table

Continues

1 4 4 1 4 5


Indicator EPRA code Scope Units of measure 2018 2019

New recruits Emp-Turnover Corporation

Total number N/A 28

Total number of men N/A 17

Total number of women N/A 11

Total number of directors and managers N/A 2

Total number of middle managers and technicians

N/A 7

Total number of administrative staff N/A 6

Total number of other jobs N/A 13

Total ratio N/A 21%

Ratio of men N/A 4%

Ratio of women N/A 4%

Ratio Directors and managers N/A 11%

Ratio of middle managers and technicians N/A 11%

Ratio of administrative staff N/A 32%

Ratio of other jobs N/A 39%

Turnover Emp-Turnover Corporation

Total number N/A 11

Total number of men N/A 7

Total number of women N/A 4

Total number of directors and managers N/A 1

Total number of middle managers and technicians

N/A 3

Total number of administrative staff N/A 1

Total number of other jobs N/A 6

Total ratio N/A 8%

Ratio of men N/A 9%

Ratio of women N/A 8%

Ratio Directors and managers N/A 5%

Ratio of middle managers and technicians N/A 5%

Ratio of administrative staff N/A 5%

Ratio of other jobs N/A 18%

Notes on Governance and Social Data

– Accident rate calculated as the number of occupational

contingency processes with sick leave, excluding accidents

in itinere and relapses, occurring during the working day, per

million hours worked.

– Severity rate calculated as the percentage of days lost per

1,000 hours of work. Relapses are included and in itinere

processes are excluded.

– Absenteeism rate: calculated as the percentage of days

lost over those expected in the period.

– New hiring rate: this is the number of recruits over the

total staff.

– Turnover rate: this is the number of departures from the

company as a proportion of the total workforce.

– The Group will work on the comparability of the EPRA

indicators relating to Diversity-Emp, Diversity-Pay, Emp-Trai-

ning, Emp-Dev and Emp-Turnover for the next year.

GRI code EPRA code Content Reference

Organizational profile

GRI 102-1 Name of the organization Gmp Property, SOCIMI, S.A.

GRI 102-2 Activities, brands, products, and services AR chapter: 2. The Company / 4. The portfolio

GRI 102-3 Location of headquarters Calle Luchana 23, 28010 Madrid

GRI 102-4 Location of operations Spain

GRI 102-5 Ownership and legal form SOCIMI. S. A

GRI 102-6 Markets served Pages 20-28, 50-51 y 64-101

GRI 102-7 Scale of the organization Pages 2, 15, 44-61, 64-65 y 117

GRI 102-8 Information on employees and other workers Pages116-117

GRI 102-9 Supply chain Pages 134-135

GRI 102-10Significant changes to the organization and its supply chain

There have been no changes in size, structure, ownership or supply chain.

GRI 102-11 Precautionary Principle or approach Pages 125-132

GRI 102-12 External initiatives Pages 136-137

GRI 102-13 Membership of associations Pages 136-137

Strategy

GRI 102-14 Statement from senior decision-maker Pages 6-9

Ethics and integrity

GRI 102-16Values, principles, standards, and norms of behaviour

Pages 41-43

Governace

GRI 102-18 Governance structure Pages 34-39

GRI 102-22 EPRA Gov-BoardComposition of the highest governance body and its committees

Pages 34-39 y 145

GRI 102-24 EPRA Gov-SelectNominating and selecting the highest governance body

Pages 34-39 y 145

GRI 102-25 EPRA Gov-Col Conflicts of interest Pages 34-39 y 145

Stakeholder engagement

GRI 102-40 List of stakeholder groups Pages 110-111

GRI 102-42 Identifying and selecting stakeholders Pages 110-113

GRI 102-43 Approach to stakeholder engagement Pages 112-115

GRI 102-44 Key topics and concerns raised Pages 112-115

Reporting practice

GRI 102-47 List of material topics Pages 112-113

INDEX GRI AND EPRA CONTENTS

Continues

1 4 6 1 4 7



Report profile

GRI 102-50 Reporting period Calendar year 2019

GRI 102-51 Date of most recent report Calendar year 2018

GRI 102-52 Reporting cycle Annual

GRI 102-53 Contact point for questions regarding the report

Head OfficesLuchana, 23 (28010 Madrid)Tel.: +34 91 444 28 00 • Fax: +34 91 444 28 [email protected]

GRI 102-54Claims of reporting in accordance with the GRI Standards

Pages 140-141

GRI 102-55 Index GRI contents Pages 146-152

Economic performance

GRI 103-2 The management approach and its components Page 133

GRI 201-1 Direct economic value generated and distributed Pages 133-135

GRI 201-3Defined benefit plan obligations and other retirement plans

Page 133

GRI 201-4 Financial assistance received from government Page 133

Market presence

GRI 202-2Proportion of senior management hired from the local community

Page 118

Indirect economic impacts

GRI 103-2 The management approach and its components Pages 136-138

GRI 203-2 Significant indirect economic impacts Pages 136-138

Procurement practices


GRI 204-1 Proportion of spending on local suppliers Pages 134-135

Anti-corruption


GRI 205-1 Operations assessed for risks related to corruption Pages 41-43

GRI 205-2Communication and training about anti-corruption policies and procedures

Pages 41-43

GRI 205-3 Confirmed incidents of corruption and actions taken Pages 41-43

Anti-competitive behavior

GRI 103-2 The management approach and its components

No risks associated with monopolistic and anti-competitive practices have been identified due to the nature of the activity carried out by Gmp .AR chapter 2.7 Ethics and Compliance

GRI 206-1Legal actions for anti-competitive behavior, anti-trust, and monopoly practices

No risks associated with monopolistic and anti-competitive practices have been identified due to the nature of the activity carried out by Gmp .AR chapter 2.7 Ethics and Compliance


Environment

Materials

GRI 103-2 The management approach and its components Pages 125 and 130-132

GRI 301-1 Materials used by weight or volume Pages 130-132

Energy


GRI 302-1

EPRA Elec-AbsEPRA Elec-LfL

EPRA DH&C-AbsEPRA DH&C-LfLEPRA Fuels-AbsEPRA Fuels-LfL

Energy consumption within the organization Pages 126-129 and 142-144

GRI 302-3 EPRA Energy-Int Energy intensity Pages 128-129 and 142-144

GRI 302-4 Reduction of energy consumption Pages 126-129

GRI 302-5 EPRA Cert-TotReductions in energy requirements of products and services

Pages 125-132, 65-101 and 142-144

Water

GRI 103-2 The management approach and its components Pages 125-126 and 130-131

GRI 303-1 Interactions with water as a shared resource Pages 130-131

GRI 303-2 Management of water discharge related impacts Pages 130-131

GRI 303-5EPRA Water-AbsEPRA Water-LfLEPRA Water-Int

Water consumption Pages 130-131 and 142-144

Emissions


GRI 305-1 EPRA GHG-Dir-Abs Direct emissions of GHG (scope 1) Pages 126-129 and 142-144

GRI 305-2 EPRA GHG-Indir-Abs Direct (Scope 1) GHG emissions Pages 126-129 and 142-144

GRI 305-4 EPRA GHG-Int GHG emissions intensity Pages 128-129 and 142-144

GRI 305-5 Reduction of GHG emissions Pages 126-127

Effluents and waste

GRI 103-2 The management approach and its components Pages 125-127 and 130-132

GRI 306-2EPRA Waste-AbsEPRA Waste-LfL

Waste by type and disposal method Pagess 132 and 142-144

Environmental compliance


GRI 307-1Non-compliance with environmental laws and regulations

There have been no breaches of environmental legislation and regulations.AR chapter 2.7 Ethics and Compliance

Supplier environmental assesment


GRI 308-2Negative environmental impacts in the supply chain and actions taken

Pages 134-135

1 4 8 1 4 9



Social

Employment


GRI 401-1 EPRA Emp-Turnover New employee recruits and employee turnover Pages 117-118, 122 y 146

GRI 401-2Benefits provided to full-time employees that are not provided to temporary or part-time employees

Page 122

GRI 401-3 Parental leave Page 122

Labour / management relations


GRI 402-1 Minimum notice periods regarding operational changesGmp complies with the legislation in force on the subject, applying the deadlines established therein.

Occupational health and safety


GRI 403-1 Occupational health and safety management system Pages 123-124

GRI 403-2Hazard identification, risk assessment, and incident investigation

Pages 123-124

GRI 403-3 Occupational health services Pages 123-124

GRI 403-4Worker participation, consultation, and communication on occupational health and safety

Communications are made to all staff through the intranet and prevention mail where they can write and give suggestions.

GRI 403-5 Worker training on occupational health and safety Pages 123-124

GRI 403-6 Promotion of worker health Pages 123-124

GRI 403-7Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

Pages 123-124

GRI 403-9 EPRA H&S-Emp Work-related injuries Pages 123-124 and 145

GRI 403-10 EPRA H&S-Emp Work-related ill health Pages 123-124 and 145

Training and education


GRI 404-1 EPRA Emp-Training Average hours of training per year per employee Pages 119 and 145

GRI 404-3 EPRA Emp-DevPercentage of employees receiving regular performance and career development reviews

Pages 120 and 145

Diversity and equal opportunity


GRI 405-1 EPRA Diversity-Emp Diversity of governance bodies and employees Pages 35,37-38, 59 and 145

GRI 405-2 EPRA Diversity-Pay Ratio of basic salary and remuneration of women to men Pages 119-145


Non-discrimination


GRI 406-1Incidents of discrimination and corrective actions taken

During 2019, no complaints have been received through the ethics channel in this regard.Pages 141-143

Freedom of association and collective bargaining


GRI 407-1Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

In 2019, the Company has not identified a significant risk in its suppliers regarding cases of child labour, since its service providers are mainly local and from OECD countries, where local legislation ensures compliance with human rights.Pages 134-135

Child labour


GRI 408-1Operations and suppliers at significant risk for incidents of child labour

In 2019, the Company has not identified a significant risk in its suppliers regarding cases of child labour, since its service providers are mainly local and from OECD countries, where local legislation ensures compliance with human rights.Pages 134-135

Forced or compulsory labour


GRI 409-1Operations and suppliers at significant risk for incidents of forced or compulsory labour

In 2019, the Company has not identified any significant risk in suppliers regarding forced work, since its service providers are mainly local and from OECD countries, where local legislation ensures compliance with human rights.Pages 134-135

Security pratices

GRI 410-1Security personnel trained in human rights policies or procedures

Not material for Gmp’s business

Rights of indigenous peoples

GRI 411-1Incidents of violations involving rights of indigenous peoples

Not material for Gmp’s business

Human Rights Assessment


GRI 412-1Operations that have been subject to human rights reviews or impact assessments

Pages 134-135

Local communities

GRI 103-2 The management approach and its components Pages 133 and 136-138

GRI 413-1 EPRA Comty-EngOperations that have been subject to human rights reviews or impact assessments

Pages 133, 136-138 and 145

1 5 0 1 5 1

Continues



Supplier Social Assessment


GRI 414-2Negative social impacts in the supply chain and actions taken

Pages 134-135

Public policy


GRI 415-1Contributions to political parties and/or representatives

As established in the Code of Conduct, it requires the prior express authorisation of the Executive Committee to both offer and accept gifts, gratuities, entertainment or presents of any nature in relations with public officials, politicians and other representatives of public institutions, thus avoiding compromising their independence or integrity. Furthermore, these situations must be brought to the attention of those directly responsible and require their prior approval. In any case, it is necessary to take into account the Procedure, Expense Note and Travel Policy and the Group's Gifts Policy

In this regard, in 2019, no breaches have been recorded in the ethics channel for this reason and no authorizations have been requested for these purposes.Pages 41-43

Client Health and Safety


GRI 416-1 EPRA H&S-AssetAssessment of the health and safety impacts of product and service categories

100% of Gmp's assets are subject to health and safety risk and impact assessments. In 2019, no breaches of regulations have been identified in any of the company's activities or properties, nor have any fines, penalties or warnings been received from the authorities.Pages 113-115 y 145

GRI 416-2 EPRA H&S-CompIncidents of non-compliance concerning the health and safety impacts of products and services

No breaches of regulations have been identified in any of the company's activities or properties, nor have any fines, penalties or warnings been received from the authorities.Page 145

Marketing and labeling

GRI 103-2 The management approach and its components Pages109-112

GRI 417-3Incidents of non-compliance concerning marketing communications

There have been no cases of non-compliance related to marketing communications.Pages 41-43

Customer privacy


GRI 418-1Substantiated complaints regarding concerning breaches of customer privacy and losses of customer data

The organisation maintains an incident log that is kept up to date although it has not identified any substantiated complaints based on a privacy violation in the period under review.Pages 41-43

Socioeconomic Compliance


GRI 419-1Non-compliance with laws and regulations in the social and economic area

There have been no cases of non-compliance with laws and regulations in the social and economic fields.Pages 41-43

1 5 2 1 5 3


6AUDIT REPORT AND FINANCIAL STATEMENTS

Castellana 77

EQUITY AND LIABILITIES 2019 2018

EQUITY 1,424,766 1,275,943

SHAREHOLDERS´ EQUITY 1,435,130 1,279,686

Share capital 9,409 9,409

Share premium 27,852 27,852

Reserves 1,218,633 1,055,922

Treasury shares (237) (320)

Dividends (20,000) -

Profit (Loss) attributable to the Parent 199,473 186,823

VALUATION ADJUSTMENTS (10,364) (3,743)

NON-CURRENT LIABILITIES 945,099 929,032

Long-term provisions 1,686 1,124

Bank borrowings 845,169 835,261

Derivatives 10,364 3,743

Tenant deposits and other financial liabilities 12,272 13,296

Deferred tax liabilities 75,608 75,608

CURRENT LIABILITIES 49,240 78,197

Non-current liabilities held for sale - 16,900

Current payables 9,035 31,759

Trade and others payables 39,634 29,538

Current accruals and deferred income 571 -

TOTAL EQUITY AND LIABILITIES 2,419,105 2,283,172

Note: Annual accounts drawn up applying International Financial Reporting Standards (IFRS) adopted by the European Union.

The Company’s Annual Accounts can be consulted on Gmp’s webpage: www.grupogmp.com

CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2019_(thousands of euros)

ASSETS 2019 2018

NON-CURRENT ASSETS 2,149,653 2,119,383

Intangible assets 180 141

Property, plant and equipment 34,512 30,281

Investment property 2,070,721 2,046,352

Non-current investments in group companies and associates 15,612 14,358

Non-current financial assets 23,095 22,718

Deferred tax assets 5,533 5,533

CURRENT ASSETS 269,452 163,789

Non-current assets classified as held for sale 131,164 65,800

Inventories 25,602 21,555

Trade and other receivables 11,019 12,021

Current financial assets 2,543 557

Current prepayments and accrued income 5,467 4,521

Cash and cash equivalents 93,657 59,335

TOTAL ASSETS 2,419,105 2,283,172

CONSOLIDATED BALANCE SHEET AT 31 DECEMBER 2019_(thousands of euros)



AUDIT REPORT AND FINANCIAL STATEMENTS

1 6 4 1 6 5

ANNUAL REPORT 2019

CONTINUING OPERATIONS 2019 2018

Revenue 94,972 106,697

Changes in inventories of finished goods and work in progress 4,047 (3,102)

Procurements (11,026) (6,252)

Other operating income 20,142 17,961

Staff costs (8,783) (8,099)

Other operating expenses (34,091) (36,006)

Depreciation and amortisation charge (1,266) (1,211)

Impairment and gains or losses on disposals of non-current assets (1,808) 620

PROFIT FROM OPERATIONS 62,187 70,608

Finance income 17,886 9,031

Finance costs (20,090) (19,624)

Gains or losses on changes in market value of assets 138,471 127,936

Impairment and gains or losses on disposals of financial instruments (2) (15)

FINAL RESULTS 136,265 117,328

Result of companies accounted for using the equity method 1,254 798

PROFIT BEFORE TAX 199,706 188,734

Income tax (233) (1,911)

PROFIT FOR THE YEAR FROM CONTINUING OPERATIONS 199,473 186,823

CONSOLIDATED PROFIT (LOSS) FOR YHE YEAR 199,473 186,823

PROFIT (LOSS) FOR THE YEAR ATTRIBUTABLE TO THE PARENT 199,473 186,823



CONSOLIDATED INCOME STATEMENT FOR 2019_(thousands of euros)

1 6 6

ANNUAL REPORT 2019

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Documents

ANNUAL REPORT 2019...Vacant space ERV 9 2 1% ERV Portfolio 85 82 15% EPRA Vacancy Rate Portfolio 11.0% 2.8% (8.2) 2 EPRA NAV (Net Asset Value) 4 EPRA Net initial Yield & Topped-up