Property investment fund Intervest Offices, quoted on NYSE Euronext Brussels, disinvests its office park located in Ghent, Xavier de Cocklaan 66-72, known as "Latem Business Park", consisting of four office buildings, for a sales value of 7.2 million.
Intervest Offices has obtained an agreement in principle to disinvest the office park "Latem Business Park". The acquirer is a Belgian private investor.
The sales value is approximately 10% above the book value as at 31 March 2010 which amounts to 6.54 million (fair value as determined by the independent property experts of the investment fund). The transaction takes place at a gross initial yield of about 8.2%.
The total surface area of the office park is 5,344 m² which is 1% of the total leasable space of the property investment fund. The office park represents approximately 1.4% of the rental income of Intervest Offices.
The transaction is concluded under the subsequent condition of suspension of a fiscal ruling by which the transfer, by means of the establishment of a long lease right against payment of a one time ground rent, followed by the transfer of the bare ownership, is not susceptible to requalification. Intervest Offices expects that this fiscal ruling will be obtained in the second quarter of 2010.