On April 11, 2012, the Cofinimmo Group acquired 100% of the shares in the company Immopol Dendermonde SA held by the companies Cordeel Zetel Temse SA and Cordeel Zetel Hoeselt SA. The company Immopol Dendermonde SA has as sole asset a building located in Dendermonde, Kroonveldlaan 30, where construction work finished at the end of March.
The building is rented for a 18-year period to the Buildings Agency (Belgian Federal State), through a lease contract that started on April 1, 2012. It will be occupied by the Federal Police as from this month, the exact entry date not yet being defined.
The rent will be indexed annually. At the end of the lease, the Buildings Agency can choose to a) renew the lease for a minimum period of three years, b) vacate the building, or c) buy the building at a price equal to the conventional value depreciated at a 3% rate per year.
The conventional value of the building is equal to 15.57 million, land included. This value is not superior to the fair value of the asset as determined by the independent real estate expert.
The initial gross yield stands at 7%. The price of 100% of the shares of Immopol Dendermonde SA is equal to the value of its equity on the acquisition date, plus the difference between the conventional value of the building and its book value.
The building, which has an area of over 9,000 m², enjoys an excellent energy performance and thermal isolation level: E 12 (compared to a maximum level allowed in the Flemish Region of E 100) and K 20 (compared to a maximal level allowed in the Flemish Region of K 45).
This transaction fits perfectly in Cofinimmo's investment strategy, since it concerns a real estate asset dedicated to public use, rented on a long term basis to a first-class tenant.