Brussels-based Befimmo has raised EUR 261 mln in the largest capital increase by a listed real estate company in Belgium in order to reduce debt and build up its reserves for further acquisitions. The operation in early June followed the coup late last year when Befimmo beat off stiff competition to acquire a 90% stake in Fedimmo, the company that owns 62 office buildings occupied by federal government departments. The investment value was EUR 725 mln as of 31 December 2006.
Brussels-based Befimmo has raised EUR 261 mln in the largest capital increase by a listed real estate company in Belgium in order to reduce debt and build up its reserves for further acquisitions. The operation in early June followed the coup late last year when Befimmo beat off stiff competition to acquire a 90% stake in Fedimmo, the company that owns 62 office buildings occupied by federal government departments. The investment value was EUR 725 mln as of 31 December 2006.
Befimmo said that the capital increase had been completed successfully in a highly competitive environment and that it had 'received the support of its shareholders and a favourable response from new institutional investors'. About 70% of the 3.2 million new shares - worth EUR 182.4 mln - were already assigned with preferential rights at the end of the subscription period, while the balance of EUR 78.8 mln - was immediately subscribed by institutional investors.
The share increase operation reduced Befimmo's debt ratio from 61% to 47%, freeing up an investment capacity of almost EUR 1 bn. 'The company is now equipped to pursue its strategy of growth, essentially based on investing in office buildings generating value over time and quality cash flows,' Befimmo said in a statement.
