AXA Belgium is exchanging two office properties valued at €37 mln to increase its stake in Brussels-listed real estate company Befimmo.

AXA Belgium is exchanging two office properties valued at €37 mln to increase its stake in Brussels-listed real estate company Befimmo.

Befimmo is paying a consideration of 70% in new shares and 30% in cash for the assets, Toison d'Or 72 and Rue aux Choux 35 in Brussels.

The current annual rents of these properties, with an average residual term of around 11 years, amount to €2.6 mln, generating a current gross yield of around 7%.

The deal sees the Belgian arm of French insurance group AXA increasing its holdings in Befimmo from 9.6% to 11.4%.

Befimmo plans to increase its shareholders’ equity by almost €26 mln by issuing around 450,000 new shares at €57.65 per share once the transfer of the assets is completed before end-November.

Toison d'Or 72, located at avenue de la Toison d'Or 72, provides 7,500 m2 of office space, and is fully let to the Flemish government agency Vlaamse Landmaatschappij for a residential fixed term of 13 years.

The 5,100 m2 Rue aux Choux 35 building is fully occupied by the Flemish Community for a residual fixed term of 8.5 years.