Intervest Retail, a 72.5% subsidiary of VastNed Retail, has signed a purchasing contract for the Julianus shopping centre located in Tongeren, Belgium, of approximately 8,900 m². The developer and vendor of the project is IBC Vastgoed, a subsidiary of Heijmans Belgium.
The project is located in the Maastrichterstraat, Tongeren's main shopping street. The total project concerns on the one hand the redevelopment of a former hospital into shops and a hotel, and on the other hand the construction of shops, apartments and an underground parking garage. Intervest Retail will acquire the retail part which consists of 22 shops and one supermarket.
Currently approximately 28% of the shops is prelet to (inter)national retail chains such as Kruitvat, JBC, Torfs, Essenza and Bel Company. Negotiations concerning the remaining shops are at an advanced stage.
Intervest Retail's total investment amounts to approximately €18 mln. (value when sold with purchasing costs payable by the vendor) at a gross initial yield of 6.9%. The net initial yield amounts to 6.7%. Construction started at the end of October 2005.
The shopping centre is due to open its doors in the last quarter of
2007. In view of the current financing ratios, Intervest Retail will be able to finance the project by way of loan capital. The investment will contribute positively to the operating result as from 2008.