Cofinimmo has acquired all the shares in AMCA SA, company]owner of the office building Avenue Building, and the office area of the adjoining building London Tower (the London Tower building also includes a number of apartments that are no longer the property of AMCA SA).
The buildings are valued at 29.2 million. This price exceeds by 2.1 million or 7.7% the investment value determined by the independent real estate expert. The explanation of this divergence lies in the considerably altered property investment market conditions between today and May 2007, the date on which Cofinimmo signed the agreement under which it agreed to acquire the two assets after delivery of the works. Moreover, at present the rental vacancy of the two properties is more significant than what was initially expected.
Nevertheless, at their acquisition, the properties already present a total occupancy rate of 33%, the in-house commercial teams of Cofinimmo commercializing actively the remainder.
The targeted gross rental yield is expected to range between 6.70% and 7.10%, depending on the type of leases concluded and their duration, which would substantially reduce the gap between the acquisition price and the market value determined by the expert.
Both properties enjoy an excellent energy performance level (E‐level) compared to the maximum level allowed in the Flemish Region (being E 100), namely E 75 for Avenue Building and E 74 for London Tower. In addition, the properties were certified 'BREEAM In Use'. Both their conception ('Asset rating') as their property management ('Business Management rating') were granted a 'Good' rating.
Cofinimmo was also associated in the development of the apartments in the London Tower. Their sales, which are now fully completed, allow the company to earn a commercialization profit of 1.9 million for the ongoing financial year.