Cofinimmo, the foremost Belgian listed real estate company specialised in office buildings, announced yesterday that, according to the agreement concluded on 08.12.2003 with Compagnie De Promotion SA, Atenor Group SA and Dexia Bank Belgium SA, it has acquired, with its subsidiary Leopold Square, the balance of the North Galaxy SA shares it did not yet own. DTZ Winssinger had initiated the first contacts between the parties.
The investment value of the North Galaxy building amounts to EUR 389.8 million, based on an initial rental yield of 6.1875%. With its 105,000mÂ² of office space, this building is located in the Brusselsâ North Area (CBD) in the immediate proximity of the North Station. The entire complex is let for a fixed period of 18 years ending as per 30.11.2022 to the RÃ©gie des BÃ¢timents (Belgian Federal Government), who has accommodated the Federal Public Service of the Ministry of Finance there.
A bridging loan has allowed Cofinimmo to lend to North Galaxy SA the amount required to refinance the construction loan (EUR 226.5 million) and the advances made by the vendor-shareholders (EUR 39 million) as part of the construction.
Today, Cofinimmo has carried out the merger by absorption with North Galaxy SA. The Cofinimmo shareholders have approved this merger on last April, 8th. 4,079 new Cofinimmo ordinary shares have been issued in favour of Leopold Square.
Cofinimmo has also set up a new company, Galaxy Properties SA, to which it has then granted a 27-year head lease on the North Galaxy building.
Fortis Bank has offered to buy from Galaxy Properties SA the rental receivables under the lease contract signed with the RÃ©gie des BÃ¢timents. This assignment of rents, covering the first 18 years of occupation of the building, enabled Galaxy Properties SA to operate an upfront payment on the head lease with Cofinimmo. This first payment has been deployed by Cofinimmo to repay in full the bridging loan made to Cofinimmo to refinance the construction of the building and to reimburse the advances from shareholders.