Sicafi Befimmo SCA has purchased Axento's shares, a public limited company governed by Luxembourg law and owner of the property project developed by CIP Luxembourg S.A. Details of the agreement were not disclosed.
This upmarket project is prominently positioned in Luxembourg on the Kirchberg Plateau (Grünewald district) along avenue John Fitzgerald Kennedy, right opposite the Auchan shopping centre. It aims at building and renting a new office block (10,500 m²) and retail spaces (1,600 m²).
Prize-winner of the July 2006 competition organised by the Fonds d'Urbanisation et d'Aménagement du Plateau du Kirchberg, the sheer quality of its architecture signed by architect Arlette Schneiders is bound to turn it into a landmark in the heart of the Kirchberg.
Building works are scheduled to begin once planning permission is granted in the autumn of 2007. They are to end eighteen months later, in the first half of 2009, by which time the investment value of the project thus held by Axento S.A. will amount to 95.4 million.
Capitalising on an eighteen-month rental guarantee, Befimmo's cash-flow per share should then increase annually by 0.15 (i.e. 3.4%), all other things remaining equal. The transaction, due to be finally completed in 2009, has been managed through Jones Lang LaSalle.