Disposal of North Galaxy SA to Cofinimmo

Cofinimmo SA has signed today, 8 December 2003, an agreement with Atenor Group SA, Compagnie De Promotion SA and Dexia Bank Belgium SA regarding the acquisition of 25% of the shares, with successive options for the balance, in North Galaxy SA, the company that develops the project of the same name located in the “North Space” in Brussels.

This building is currently in construction and will offer 105,500m² of office space, 13,500m² of archives and 684 inside parking spaces.

On 17 February 2003, an 18-year lease contract was signed with the Régie des Bâtiments (Belgian Federal Government). This lease starts on 1 December 2004 and relates to nearly 72% of the surfaces. The Federal Public Service of the Ministry of Finance will take residence there. The Council of Ministers recently approved to let the remaining surfaces, for an identical term. These surfaces are intended for the same occupant.

The North Galaxy shares were so far owned by Atenor Group (47%), Compagnie De Promotion (47%) and Dexia Bank Belgium (6%). On 8 December 2003, Cofinimmo has acquired, for almost EUR 20.0 million, 25% of the shares. The capital is now distributed as follows: Atenor Group 22%, Compagnie De Promotion 47%, Cofinimmo 25% and Dexia Bank Belgium 6%.

The shareholders have agreed to exercise a joint control on the company, which will be subject to a proportional consolidation in the Atenor Group and Cofinimmo consolidated financial statements.

Cofinimmo has a call option on the remainder of the shares and has granted a put option to the other shareholders, which can be exercised when the building is completed, but not later than 30 December 2005.

All parties of this agreement are pleased to have come to terms on this important transaction in a mutually advantageous way. The current shareholders are now ensured of the disposal of their participating interests in the development company, which will complete the construction of the building. Cofinimmo enlarges its consolidated portfolio by including a new building with a long-term lease contract with the Belgian Federal Government, in “North Space” in Brussels, where it was not yet present.

Source: Cofinimmo