Property investment fund Intervest Offices acquires the present operational main office of Siemens located along the Atealaan in Herentals and concludes a framework convention for the acquisition of the adjacent vacant land parcels along the motorway E313. These parcels are meant for the future development of 40.000 m² logistic buildings, which will be realised by Intervest Offices in two phases as from the beginning of 2008.
Intervest Offices acquires with both transactions 14 hectare of the Siemens site which covers a total surface area of 18 hectare. On the part of the site that is not acquired by Intervest Offices, new office buildings of Siemens-Nokia Networks are constructed.
The acquisition of the existing Siemens building comprises 1.549 m² office space and 23.431 m² space for multifunctional use (located on a total surface area of 79.767 m²). This acquisition comprises the purchase of the shares of Nieuw Temse Recycling SA. The economic transfer took place on 30 November 2007.
Furthermore, a management agreement has been concluded with the sellers whereby Intervest Offices benefits from a fixed rental income of 500.000 per year till December 2010. At the expiry of the management agreement two options are possible: demolition of the building for the redevelopment of a new and larger distribution centre of about 40.000 m² or further optimization of the present building and re-rental.
The framework convention for the acquisition of the logistic development concerns in a first phase the construction of 20.000 m² (2 units of 10.000 m²). The delivery is presently planned for August 2008. This part of the transaction comprises the purchase of the shares of Edicorp SA, foreseen after the delivery of the logistic object. The economic transfer of the building and the entire land (62.335 m²) will take place at the time of the acquisition of the shares. After the transfer of the shares, Intervest Offices obtains during one year a rental guarantee, conforming market conditions.
In a later phase, Intervest Offices can proceed on this land to a further development of 20.000 m² logistic buildings for its own account (2 units of 10.000 m²).
The investment value of the transaction amounts to about 8 million for the acquisition of the existing building (which is lower than the value determined by the independent property expert) and 15 million for the first phase of the logistic development. The transaction contributes directly to the operating result of 2007. The net initial yield after the complete development of the logistic site will amount to about 7%.
The building to be constructed corresponds to all characteristics of a state of art distribution center. The logistic development will be realised by Cordeel, a company specialised in industrial constructions.
"Intervest Offices acquires with this acquisition an ideal located site on one of the important logistic corridors in Belgium, near the access of the E313 and with high visibility. This acquisition offers a perfect relation risk/yield through the combination of certainty of direct rental income and the development potential on the long run" according to ceo Jean-Paul Sols.
Source: VastNed
