Homburg Invest Inc. is pleased that it has reached an agreement through Alliance Group, a Dutch/Swiss investment group with CommerzLeasing und Immobilien AG (CLI), an arms length party in Germany, whereby it will acquire the newly built Head Quarters and
development centre of Infineon Technologies AG located at the south side of Munich, Germany for an aggregate purchase price of approximately €400 million excluding costs.
The acquisition is expected to close on or about June 30, 2006, subject to due diligence and normal conditions. The acquisition will involve a share purchase whereby a Limited Partnership owned 100% by Homburg Invest will acquire the shares of Moto ObjeKt CAMPEON Gmbh & Co KG from CLI. Moto is the owner of the Campus, leased on a triple net basis to Infineon Technologies AG, a DAX and NYSE listed company, for twenty years. Infineon has a purchase option after 15 years or will continue the lease.
The Campus has been built between 2003 and 2005 and exists of six building modules, each app. 23,000 m² in size and an underground parking facility for 1,980 cars. The office premises are modular in design, arranged in a north-south direction campus-style along a generously dimensioned park-like promenade. Thanks to the low level of building and abundant water surfaces Campeon blends harmoniously with the image of the green corridor. The access to the parking space, all situated beneath the buildings, is via an underground ring road so the image is not marred by car parks, multi-story or otherwise. All six modules are linked with one another via an underground ring road and a utility tunnel. Each module is designed with two separate elements (above ground) facing each other, so to the observer, there are twelve separate building elements. All in all, the Campeon covers approx. 150,000 m² floor space above ground including, in addition to the offices, a café, restaurant, various shops for everyday needs, a casino, sports facilities and a health centre, thus creating approx. 6,000 jobs on the site. There is also a day nursery for employees children. The buildings are low-rise and very well-designed. The total land area amounts to 50 ha with app. 150,000 m² of construction.
Deal structure
Of the total purchase price, approximately €275,5 million will be by the assumption of debt and approximately €110,0 million plus costs will be paid in cash for the shares of Moto.
This acquisition will be accretive to the earnings per share and provides the Company with a long term stable cash flow.
Source: Homburg Invest Inc.
