In particularly difficult financial and economical market circumstances, Leasinvest Immo Lux SICAV-SIF (a 100% subsidiary of Leasinvest Real Estate) sold on June 24, 2009 its entirely renovated and extended office building Bian, situated in the Cloche d'Or activity zone of the City of Luxembourg, which has been delivered at the end of the previous and at the beginning of this month.
The building has been sold to an end user. The sale took place through the intervention of the Luxembourg real estate agent Property Partners.
Thanks to this sale by Leasinvest Immo Lux SICAV-SIF (a 100% subsidiary) and taking into account the substantial investment that Leasinvest Immo Lux has made for the modernization and extension of the building, Leasinvest Real Estate will realise a consolidated capital gain of approximately €3.5 million euro in addition to the one already recorded in the accounts on 31/03/09 - in application of IAS 40.
Leasinvest Real Estate realizes a cash proceed which will reduce the debt ratio of Leasinvest Real Estate below 50%.
Jean-Louis Appelmans, CEO of Leasinvest Real Estate comments: "Taking into account the expected high availability of new offices in the Cloche d'Or zone (approximately 50,000 m²) in the coming two years, we preferred to choose for the sale of the new office project on which a capital gain is realized. The quality architecture and degree of finishing of this building explain the choice of the buyer for our building, who only took into account an acquisition scenario."