As part of its asset arbitrage policy, Cofinimmo announces the sale of the Citylink office park in Antwerp to Mercator Verzekeringen N.V. for 63.17 million.
The business park comprises four office buildings totaling 27,108m² and 587 parking spaces, completed in 2009. It is currently 100% rented to several tenants, Mercator Verzekeringen N.V. being the main tenant.
The sale price is in line with the latest investment value (including the transfer taxes) determined by the independent expert. The proceeds of this sale will be reinvested within Cofinimmo's investment program.
Cofinimmo SA and Foncière Atland and the MAAF mutual insurance group also announce the acquisition in partnership of 285 sites (branches and offices) of MAAF, located in France, amounting to 60,411 m² for a total investment of 107.6 million.
The portfolio comprises a group of 267 commercial premises used by MAAF as customer agencies, 15 properties used mainly as offices and three mixed-use buildings, all also occupied by MAAF.
The rental income comes to a total of 7.86 million. These rents will be subject to annual indexation. Of this total rental income 83% comes from fixed leases for nine or 12 years, 3% from six- or nine-year leases and the remaining 13% from three-, six- and nine-year leases (10 sites were vacant at the time of going to press) i.e. the average weighted duration is 9.7 years for the leases as a whole. The investment's initial rental yield therefore amounts to 7.31%.
The direct and indirect operating costs are estimated to reach 1.13% of the acquisition value, bringing the initial net yield to 6.18%.
Foncière ATLAND REIM will be in charge of the assets and property management for the entire portfolio on behalf of the acquisition structure co-jointly detained by Cofinimmo S.A. and Foncière ATLAND.
MAAF has also undertaken to carry out renovation and upgrading work at more than two third of the sites for a total amount of 79.3 million by 2017.
The acquisition of this portfolio of branches and offices is to take place before the end of 2011 by Cofinimur I S.A., a company under French law, newly set up by Cofinimmo S.A., which will hold 97.65% of its capital and voting rights.
The balance of the capital and voting rights will be held by an entity of the Foncière Atland group. The capital will amount to 48.9 million. The two shareholders will grant loans to this company, pro rata to their respective holdings in the capital, for a total amount of 6.7 million.
Cofinimur, as a subsidiary of listed companies qualifying for the SIIC (real estate investment trust) regime, will also benefit from this tax regime.
Cofinimur has issued mandatory convertible bonds (MCBs) to the amount of 52.0 million. This issue was placed by Bank Degroof and has been subscribed, primarily by French and Belgian insurance companies. The conditions attached to the MCBs are described in an appendix to this press release.
Etude Cheuvreux (notaries), Gide et Wragge & Co (lawyers), Banque Degroof (finance structuring), and CETIM (real estate) acted on behalf of the purchasers. Etude Allez (notaries), PA LG (lawyers) acted on behalf of the sellers.