JER Europe Fund III, L.P., the third pan-European real estate fund of JER Partners ('JER'), has acquired a 30.53% holding in the capital of the Compagnie Immobilière de Belgique from Suez-Tractebel for an aggregate purchase price of €47.8 million, with an additional potential earn-out of up to €2.5 million.
The Compagnie Immobilière de Belgique has been a leader in the Belgian real estate sector for over 140 years. It operates as a real estate developer in three areas:
- offices and corporate real estate
- residential property
- land banks
JER Partners is the global real estate investment arm of the J.E. Robert Companies, a real estate investment management company with 26 years of experience in sourcing, underwriting and managing a broad spectrum of real estate equity investments and debt products. In June, JER Partners announced the closing of JER Europe Fund III, having raised €809 million. The fund will focus on property investment opportunities across all sectors throughout Europe.
This acquisition is JER Partner's second transaction in Belgium this year and underlines the firm's strong interest in the office and residential sector within this market. JER believes that the acquisition of this successful real estate company, which has a strong brand and well developed real estate operation represents an attractive platform on which to expand its Belgian real estate investments. Following the acquisition, JER intends to encourage the company to continue to invest in large office and residential development projects within the Belgian market. JER also intends to review the company's corporate structure.
Malcolm Le May, President Europe at JER Partners, commented, "This deal emphasizes JER's commitment to complex, corporate transactions in the European market place. In particular, JER is delighted to be able to benefit from the real estate development expertise of Compagnie Immobilière de Belgique's management in maximizing value for the company's shareholders."
Crédit Suisse is advising JER on this transaction.