Leasinvest Immo Lux, a 96.5% subsidiary of Leasinvest Real Estate, has acquired three commercially very well situated retail sites/buildings, rented for 100%, situated in Strassen, Diekirch and Foetz. Through this acquisition Leasinvest Real Estate increases its Luxembourg portfolio by €47.5 million. The total portfolio is now based on a balanced breakdown over three separate asset classes: offices, logistics and retail.
Leasinvest Immo Lux has acquired a retail site in Strassen and two retail buildings, of which one is situated in Diekirch and one in Foetz, for an investment value of €47.5 million (including registration rights & costs). The gross initial yield amounts to 7.68% with a total annual rental income of €3.6 million.
The retail site situated at the important access road to the city of Luxembourg, namely Route d'Arlon nr 2 in Strassen, has been acquired for an investment value of €28.9 million (including registration rights & costs) and consists of 22,721 m² of rentable space and 515 outdoor parking spaces. The site is mainly rented to Bâtiself (German do-it-yourself retailer), Adler Mode (apparel, subsidiary of the German Metro Group) and Roller (furniture). The gross initial yield amounts to 7.97% with an annual rental income of €2.3 million.
The retail building situated at the N7 in Diekirch has been acquired for €11.3 million (including registration rights & costs) and consists of 8,843 m² of rentable space and 204 parking spaces. The building is rented to Bâtiself. The gross initial yield amounts to 7.24% with an annual rental income of €0.8 million.
The retail building situated at the rue du Brill next to the Cora outlet in Foetz has been acquired for €7.3 million (including registration rights & costs) and consists of 4,219 m² of rentable space and 215 parking spaces. The building is rented to Adler Mode. The gross initial yield amounts to 7.2% with an annual rental income of €0.5 million.
All the acquired buildings are 100% occupied and the leases have an average remaining duration of 6.5 years.
The transaction has been entirely financed with newly obtained credit lines from banks in Luxembourg and Belgium.
Leasinvest further invests in retail and in Luxemburg
This acquisition fully fits the well thought-out growth of the portfolio and the further geographical diversification in Luxemburg and asset class diversification.
Leasinvest increases the retail part in its consolidated real estate portfolio through adding the recently acquired retail outlets to its current retail premises rented to Match in Diekirch and Dudelange (nearby Foetz) in Luxembourg and to its retail park situated in Nossegem (Zaventem) in Belgium. The retail portion of the consolidated real estate portfolio of Leasinvest now amounts to nearly 20%.
The total Luxembourg portfolio now represents 40% of the total portfolio (previously 30%).
Jean-Louis Appelmans, CEO of Leasinvest, commented: "In these turbulent times Leasinvest has succeeded in obtaining the necessary financing to seize this opportunity to acquire very well-situated retail locations in Luxembourg at favourable conditions. The breakdown of the total portfolio is now based on three separate asset classes and becomes more balanced with 60% of offices (previously 69%), 21% of logistics (previously 24%) and 19% retail (previously 7%). Leasinvest confirms with this successful acquisition its continued commitment to create shareholders' value."
Source: Leasinvest
