The Extraordinary Shareholders' meeting of Wereldhave Belgium has approved the contribution by Redevco Retail Belgium, by means of a partial demerger, against new shares issued by Wereldhave Belgium, of the real property rights in the shopping center 'Shopping I' and in the commercial part of the complex 'Stads- en Sint-Martinusplein', located in Genk.
This transaction amounts to approximately 69 million against the issuance of 976,251 new shares at net asset value, minus the gross dividend for the financial year ended on
December 31, 2011. The new shares are entitled to dividend as from January 1, 2012 and will be listed on NYSE Euronext Brussels.
Wereldhave NV has acquired 70% (683,375) of the new shares in order to keep its (direct and indirect) stake in Wereldhave Belgium at a similar level. Although the shareholders of Redevco have not committed to hold their participation in Wereldhave Belgium, they have no intention to transfer their participation a ratio of 4.6% (approximately 292,000 shares) in the capital of Wereldhave Belgium to a third party as this fits into their current investment strategy.
This transaction fits into the strategy of Wereldhave Belgium to concentrate its activities on (the redevelopment of) shopping centers.
Genk Shopping I
Genk Shopping I is located in the center of Genk and is Belgium's oldest shopping center. The most important tenants are Carrefour, Sportsdirect, MS Mode, WE, America Today, Lunch Garden.
The shopping center will be fully renovated and extended. The plans in this respect, including those of the extension of 11,500 m², are established. All permits were delivered, thereby implying that the construction works can be started this year. After completion, the total lettable area will amount to 27,100 m².
Stads- en Sint Martinusplein
This mixed-used, inner-city development dates back to 2007/2008. The commercial part, of which Wereldhave Belgium becomes the owner, comprises about 30 commercial units including Delhaize, C&A, H&M, ZARA, JBC, Hema, with a total lettable area of approximately 15,600 m².
Through coordinated management of both shopping complexes, an attractive and balanced offer can be provided for within the city center of Genk.
Redeveloping a shopping center such as Genk Shopping I is to be carried out by experts and for such a complex operation, it is better to have only one leader in charge, according to Eric Van Dyck, COO Redevco BV.
Wereldhave Belgium has in this respect more than proven to have sufficient expertise in house. Recently, a comparable project has been delivered with the renovation and extension of the shopping center in Nivelles.
Redevco specializes in the (re)development of integrated retail parks and commercial real estate situated in high streets top locations. As investor, Redevco also holds participations in a number of shopping centers such as Waasland, Westland and Ring Shopping. Wereldhave Belgium primarily focuses on shopping centers. From this angle and given their track record a participation in the real estate investment fund Wereldhave Belgium is considered as fitting their actual investment stategy.
Source: Thomson Reuters