During the financial year 01/07/2003 - 30/06/2004, Leasinvest Real Estate has entered into a long term lease with purchase option, with the European Union, for a duration of 27 years, concerning the building situated rue de Trèves in the Central Business District of Brussels. The long term lease has started on 01/02/2005.
Leasinvest Real Estate has sold without recourse the long term lease receivables to ING Belgium SA. At the same time, the relative interest hedging contract concluded at the time has been sold. The net impact of these operations will positively influence the portfolio result and consequently the net result on 30/06/2005 for an amount of 0.85 million. Due to this transaction, only the naked ownership of this building will be taken down in the balance sheet of Leasinvest Real Estate, for an amount of 1.
The above mentioned sale proceeds will in the first place reduce the existing lines of credit, and will be used to finance afterwards new investments.