Intervest Offices has obtained an agreement in principle to disinvest the office
buildings Zaventem, Lozenberg 15/18/23 (Airway Park), Zaventem, Weiveldlaan 41 (Atlas
Park), Leuven, Interleuvenlaan 15 (Greenhill Campus), Kortenberg, A. de Coninckstraat 3 and Zaventem, Imperiastraat 12 for an amount of 92,5 million.
Presently, the occupancy rate of the sold portfolio amounts to 42 %. Consequently, this transaction has an important positive effect on the total occupancy rate of Intervest Offices, which will increase with this sale with 8,6 % points to more than 90%.
Intervest Offices divests these properties, making use of the favorable investment market. The sale takes place at a value that is fractionally below the present book value (fair value) that amounts to 94,6 million.
The total result of the sale of the portfolio in 2006, after reversal of the provisions for refurbishment and future reductions on rent, is a limited loss of value of 1,3 million (1,4%).
The total surface area of the buildings sold amounts to 71.210 m², which is 11,9% of the total lettable surface area. The sold properties represent 9,3% of the rental income of Intervest Offices.
The transfer takes place at a gross initial yield of approximately 4%. The buyer is a group of British private investors. This group is already an important real estate investor in Belgium.
Jean-Paul Sols - CEO: "We take the chance now the possibility occurs to sell, at favorable conditions, the properties difficult to let and buildings with increased risk in order to improve the general quality of the portfolio. This transaction puts us in a better position to commercialize purposefully the other available spaces. It is also the aim to improve through adequate new acquisitions in 2007 the risk profile of the investment fund."
Source: Intervest Offices