On 29 March AXA Belgium SA acquired 100% of the shares of the 3 subsidiaries of Leasinvest SA (Leasinvest-Extensa group), the promoter of Leasinvest Real Estate SCA (LRE), which will contribute in kind(1) into LRE against newly created LRE shares, of the same type as the existing shares(2). This capital increase will subject to the approval of the CBFI - be submitted for approval to the general meeting of shareholders of LRE which will be convened to this end at the beginning of May.
"Through this transaction LRE achieves 4 major objectives: this transaction entirely fits into our strategy, reinforces our position as 4th biggest sicafi, increases our capital basis to finance this growth and improves the most important financial ratios of Leasinvest Real Estate" states Jean-Louis Appelmans, CEO of Leasinvest Real Estate Management SA.
Composition of the portfolio for acquisition
Under reserve of approval by the general meeting of shareholders LRE will acquire 100%1 of the shares in the companies De Leewe SA, Warehouse Finance SA and Logistics Finance I SA.
The principal asset of De Leewe SA is an office building in Malines of approximately 14,000 m². The office building is leased for an irrevocable term of 15 years to Wolters Kluwer Belgium SA (as of 01/06/2002). The fair value amounts to €26.86 million; the estimated investment value amounts to €27.53 million.
The principal asset of Warehouse Finance SA is a logistics centre in Malines of approximately 6,000 m². The warehouse is let as of the beginning of 2002 to Wolters Kluwer Belgium SA for a term of 9 years. The fair value amounts to €5.22 million; the estimated investment value is €5.35 million.
The principal asset of Logistics Finance I SA is a distribution center composed of storage halls and offices, situated Heesterveldweg in Tongres, with a total surface of approximately 26,000 m². On 27/12/2001 a sale & rent back transaction was concluded with SKF SA for an irrevocable term 15 years. The fair value amounts to €14.37 million; the estimated investment value is €14.73 million.
Foreseen contribution in kind by AXA Belgium SA
Within the framework of the collaboration agreement signed in July 2004 by AXA Belgium SA, Leasinvest Real Estate Management SA, LRE and Leasinvest SA, it has been agreed that AXA Belgium SA would subscribe to 1,154,047 new LRE shares by contributing in kind of real estate or real estate companies. AXA Belgium SA has committed to bring in its shares of the aforementioned 3 companies in LRE at the beginning of May 2006. It is expected that with this contribution in kind AXA Belgium SA will entirely fulfill its foreseen commitment in the aforementioned investment agreement. Ackermans & van Haaren and AXA Belgium SA will both own an equally important participation in LRE of approximately 28.9 % each.
The total Shareholders Equity of LRE will increase by 47.7 million EUR by the bringing in.
Acquisition of a semi-industrial building located in Forest
On 29 March Leasinvest Real Estate acquired, directly from Leasinvest SA, at a price of €2.7 million a semi-industrial building composed of offices and storage and situated at the Lusambostreet in Forest (Brussels) and also the long lease on the ground. Aforesaid building is let to Alcan Belgium SA for 10 years as from 16/11/2003. The fair value amounts to €2.65 million; the estimated investment value of the building is €2.72 million.
Consolidated real estate portfolio of Leasinvest Real Estate(3)
On 29 March the fair value and the investment value of the total aforementioned real estate portfolio (including the building in Forest) amounted to 49.10 million EUR and €50.33 million respectively.
With this second important acquisition - after the acquisition of 51.13% in Dexia Immo Lux on last 22 March - subject to the approval of the general meeting of shareholders the fair value of the consolidated real estate portfoli