Following an earlier agreement, Cofinimmo Group has concluded an agreement with the shareholders of Belgian European Properties SA (BEP) on May 6, 2006, by which it acquires all the shares of this company.
BEP SA owns the construction works of an office building complex of about 16,500m, located in the heart of the Leopold District, a few steps away from the European Parliament. At the occasion of the Extraordinary General Assembly of 13.06.2006 (or 03.07.2006 if the legally required presence quorum has not been reached), the Cofinimmo shareholders will be invited to approve the absorption through partial division of the company Financière Belge dInvestissement SA (FBI SA), making Cofinimmo the owner of the land on which the office building complex has been built. As a counterpart of this partial division, the shareholders of FBI SA, which will not be winded up, will receive 152,002 newly issued ordinary Cofinimmo shares, entitled to share in the Cofinimmo results as of 01.01.2007.
The complex is composed of two connecting buildings, located along the Square de Meeûs, the rue du Luxembourg and the rue Marie de Bourgogne. There is a liaison from one building to the other on each floor.
Some 7,500 m are newly built and delivered and about 9,000 m (on the corner of the Square de Meeûs) have to be entirely renovated. The facade of the second building is classified and therefore has to be protected.
Both buildings have a common underground parking of 90 places.
At present, the building is vacant, but its prestigious location as well as the technical quality and finishing of the new construction have already attracted several potential candidates.
After renovation, the investment value of the building would amount to about €60 million, which generates an expected rental yield of about 6.5%.
This acquisition fits with Cofinimmos current investment strategy, as it allows the Group to reinforce its position in optimal locations.