The fair value of the real estate portfolio of Leasinvest Real Estate rises by 54.3% compared to 31/12/2005 from €272.2 million to €420.3 million due to the acquisition of a controlling interest in the Luxembourg sicav Dexia Immo Lux. The increase of occupancy rate raises to 94.7% (compared to 93% on 31/12/2005).
Dexia Immo Lux
Acquisition of controlling interest
On 22 March 2006 Leasinvest Real Estate (LRE) acquired the joint controlling interest of Dexia Bank Belgium and Ethias group of in total 51.13% in the listed sicav Dexia Immo Lux (DIL) and their share of 100% in Dexia Immo Lux Conseil SA (DIL Conseil). This acquisition for an amount of approximately €111 million has been entirely paid in cash. The capitalisation and distribution shares of DIL are listed on the Luxembourg stock market and on Euronext Brussels. The global transaction price is based on a price, for 100% of the DIL and DIL Conseil shares, of €177.3 million.
Public takeover bid
Since 15 May a voluntary public takeover bid has started, at the same conditions, in Belgium and in the Grand Duchy of Luxembourg, on all remaining capitalisation and distribution shares of DIL for respectively €3,150.20 and €1,467.57 (coupon number 15, equal to a gross dividend of €70, detached).
The offer is subject to the suspensive condition that Leasinvest Real Estate acquires, after the end of the takeover bid, directly or indirectly, at least 67% of the shares issued by DIL and more than 50% of the distribution shares of DIL. In case of acquisition of 100% of the remaining shares of DIL, the total investment, within the framework of the abovementioned public takeover bid, amounts to 6€6.3 million.
Dexia Immo Lux
Dexia Immo Lux (DIL) is a real estate investment fund with variable capital (sicav) established in the Grand Duchy of Luxembourg. DIL owns 13 buildings, exclusively situated in the Grand Duchy of Luxembourg. Most of the buildings are multi-tenant and they consist of offices (78%), 1 semi-industrial building (14%) and two supermarkets (8%). Geographically the buildings are well spread across the City of Luxemburg (78%) and the periphery (22%). The occupancy rate is 94.39% and the total surface amounts to 48,651 sqm. The actual rental yield compared to the fair value is 7.04% and compared to the investment value is 6.87%; the weighed average duration of the leases is 2.66 years.
Acquisition Leasinvest-Extensa group portfolio
Direct acquisition by LRE of a semi-industrial building located in ForestOn 29 March Leasinvest Real Estate acquired, directly from Leasinvest SA, at a price of €2.7 million in cash, 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. The fair value amounts to €2.65 million; the estimated investment value of the building is €2.72 million. The occupancy rate is 100% and the remaining duration of the lease is 7.6 years.
Foreseen contribution in kind by AXA Belgium SA
Also on 29 March 2006 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 be contributed in kind into LRE against newly created LRE shares, of the same type as the existing shares. This capital increase will be submitted for approval to the general meeting of shareholders of LRE foreseen on 29 May.
This contribution in kind fits within the framework agreement signed in July 2004 by AXA Belgium SA, Leasinvest Real Estate Management SA, LRE and Leasinvest SA, in which has been agreed that AXA Belgium SA would subscribe to 1,154,047 new LRE shares by the contribution in kind of real estate or real estate companies. It is expected that with this contribution in kind AXA Belgium SA will entirely of for the major part fulfill its foreseen commitment in the aforementioned investment agreement.
Ackermans & van Haar