NSI N.V. (NSI) completed last week the sale of its Swiss office property Silvergate in Thalwil and its retail property Perolles Centre in Fribourg for a total amount of CHF 94.5 million (approx. 78.7 million). NSI's strategy focuses on the Benelux and NSI therefore considers Switzerland no longer as a core market.
As announced in December 2011, NSI is in the process of selling its Swiss assets and has by now sold approx. 70% of its Swiss portfolio, representing a LTV (loan-to-value) reduction of approx. 1.4%.
Both properties were acquired in 2008 and had a book value of CHF 97.6 million (81.2 million) in total. Silvergate is a 12,876 m² office building in Thalwil, a suburb of Zürich and generates an annual gross rental income of 2.4 million. Pérolles Centre is a 13,235 m² shopping center in Fribourg and generates an annual gross rental income of 2.6 million. The disposals will have only a marginal impact on the company's direct result of approx. 0.01 per share for 2012.
The properties have been sold in two separate transactions to two buyers. Both properties were locally financed at fixed interest rates. The proceeds of the sale will be fully used to redeem loans and represent a reduction of the LTV of approx.1.4%.
Johan Buijs, CEO of NSI comments: "We announced our intention to sell our Swiss portfolio in December. I am pleased that we have now completed the disposal of 70% of the Swiss portfolio in six months time, at price levels close to book value, and we are committed to finalize the sale of the two remaining smaller assets in the course of 2012. These transactions prove that we are on track in executing our strategy and reducing our LTV. The proceeds of the sale of the total Swiss portfolio will reduce our loan-to-value by approximately 2-2.5%."
Furthermore NSI continued with disposing it's smaller, non-core office buildings in the Netherlands and sold 3 properties at price levels close to book value for a total amount of 9.4 million. These properties (Herengracht & Lairessestraat in Amsterdam and Plein van de Verenigde Naties in Zoetermeer1, representing 5,500 m² office space in total) generated an annual gross rental income of 0.9 million.