As of 30 March 2009 the Belgium Buildings Agency notified the award to Fedimmo SA (a 90% subsidiary of Befimmo SCA) of the contract as promoter of the work to provide a building to house the Finance Federal Public Service in Liège.
It is a project to redevelop the Fedimmo site at rue Paradis in Liège opposite the new TGV station (Liège‐Guillemins) by building a completely new office building to house a top‐flight tenant, the Belgium Government (Buildings Agency). The lease, for a fixed 25‐year term, is due to begin as of 1 June 2013 while the building works, according to the agreed timetable, should start in early 2011.
Fedimmo has taken all the necessary steps to apply the required permits, confirming the urban development certificate it has. It has also teamed up with first‐rate builders to ensure that the costs of the new building are kept in line with the specifications.
The initial annual rent is 5,428,367.24. It will be indexed each year on the anniversary of the lease and for the first time in 2014, using as base health index November 2008.
This operation is in line with the strategy of Befimmo (and its subsidiary) as a pure player investor, and demonstrates its skill in enhancing the value of its real estate property.
This investment strengthens Befimmo's defensive profile by guaranteeing long‐term, regular and indexed cash flows, strengthening the sustainability of the dividend.