Züblin Immobilien has announced several positive developments in its European real estate portfolio. After its approx. €60 million (CHF 104 mln) capital increase in October 2006, Züblin has concluded an acquisition of a logistics property in Germany and signed a letter of exclusivity for the purchase of an office building on Ile de la Jatte in Paris. Zueblin further has sold its vacant property in Berlin, and has entered into a long-term lease with purchase option at a property in Brussels. All of these transactions will have a positive impact on the Company's vacancy rate going forward.
Purchase of prime logistics building in Frechen, Germany
At the end of December 2006, Züblin expanded its investment in logistics properties with the acquisition of a new logistics and office building with approximately 22,000 m² of usable space. The building is 100% leased to a single tenant, Antalis GmbH in Köln, for a period of 15 years. The value of the property is approximately €30 million, and will be financed through a mix of 35% equity and 65% debt.
Exclusive purchase agreement in Paris
Züblin Immobilière France (ZIF), a subsidiary in France, announced that it had signed an agreement with Oppenheim Immobilien Kapitalanlagegesellschaft GmbH, granting ZIF exclusivity through mid-February 2007, to purchase an office building with approximately 9,115 m² of usable space. The building is located on the Ile de la Jatte, 26 Bd du Parc - Neuilly, in the western business district of Paris. The completion of the acquisition is subject to satisfactory due diligence, finalization of the legal documentation and statutory approvals.
Sale of office property Maxstrasse 2-4 in Berlin
The Company had two office properties on the Maxstrasse in Berlin, the largest being a building with 9,112 m² of usable space. This building at Maxstrasse 2-4 has been 100% vacant for several years and was sold at the end December 2006 for a price above its current appraised value.
Long-term lease of office property in Belgium
The Company announced that it had signed a 6-year lease for 100% of the office space at its building at Avenue Hermann Debroux 17-19. The lease contains a purchase option after three years, whereby the lessee can purchase the building at a price which currently exceeds market value. The building had previously been 84% vacant.