Property investment fund Intervest Offices concludes an agreement with tenant Tibotec-Virco regarding its departure from Malines and receives a compensation of 8.1 million.
Tibotec-Virco is an important tenant of Intervest Offices which represents approximately 8% of the rental income of the property investment fund and occupies about 19.526 m² office space and laboratories in the premises of Intervest Offices in Malines. On request of Tibotec-Virco, which will transfer its activities to the plant of Janssen Pharmaceutica (Johnson & Johnson) in Beerse, the current rental contracts and the property lease contracts have been terminated in advance.
Tibotec-Virco will make all premises available to Intervest Offices before 30 September 2010 and will pay a fixed compensation consisting of the entire rent and the property lease compensations till the expiry dates of the contracts (resp. 30 November 2013 and 31 October 2014), as well as all rental charges and compensations linked to the execution and termination of these contracts. The received compensation for the rental income related to the future, will for IFRS purposes be spread into profit till the original expiry date of the lease contracts, unless an earlier re-letting would occur.
Subsequently, Intervest Offices offers the spaces to be re-let. Within this context, an agreement has been made with Tibotec-Virco that in case of possible re-letting, 5 % of the net received rental income of the new tenant till respectively 30 November 2013 and 31 October 2014 will be retroceded to Tibotec-Virco.
For 2010, the impact of the departure of Tibotec-Virco is relatively limited (approximately 450.000 rental income). Through the spread of the rental income the impact of the departure of Tibotec-Virco can be estimated as from 2011 at approximately 4 % of the rental income of Intervest Offices (approximately 1,65 million). This impact can be limited in case of re-letting of the buildings.
"With this agreement Intervest Offices receives on 30 September 2010 the immediate payment of the rental income of Tibotec-Virco for approximately four years. Besides the offices will already be available for re-letting as from the end of September 2010. " commented CEO Jean-Paul Sols.
Source: Intervest Offices