Befimmo bags Blue Tower in Brussels

Belgian REIT Befimmo has acquired the Blue Tower office building in Brussels from Morgan Stanley's P2 Value fund.

The investment volume was €78.5 mln, which Befimmo said was in line with an independent fair value appraisal of the asset. BNP Paribas RE and Savills advised the vendor.

Located in the Louise area of the Belgian capital, Blue Tower comprises 24,535 m2 of offices, 3,600 m2 of archiving space, some retail space and 332 parking places. It generates a gross rent of €5.4 mln, which reflects a gross initial yield of 6.9%.

Some 2,000 m2 is vacant and if occupied, would lift rental income to about €5.9 mln and generate a gross potential yield of 7.5%.

To help fund the acquisition Befimmo carried out the private placement of 637.371 treasury shares.

The €31.2 mln raised will be used to partially redeem Befimmo's credit lines that have been used to finance the acquisition and to bring Befimmo's LTV close to its LTV before the acquisition.

Kempen & Co acted as sole bookrunner for this transaction.