Brookfield’s RE Invest Belgium investment arm said on Friday that it has launched a €47.50-a-share takeover offer for listed Belgian property landlord Befimmo.
The bid, which has the support of Befimmo’s board of directors, values Befimmo’s total 28.5 million shares at a total of €1.35 bn and represents a premium of 29.3% to the 52-week share price high of €36.75 per share for the period ended February 24, 2022.
The offer is conditional upon Re Invest Belgium securing at least 50%+1 of capital of Befimmo and has the support of major shareholders such as AXA IM Alts, acting on behalf of AXA Belgium and AG Real Estate. This support will enable RE Invest to acquire roughly 15.2% of Befimmo’s shares.
In a statement, RE Invest said that the operation ‘provides Befimmo’s shareholders with value certainty and an immediate 51.8% premium over the last closing price on February 24’.
It added: ‘RE Invest Belgium seeks a controlling position as it believes Befimmo will be able to realize its potential with an experienced strategic and financial partner that supports Management in unlocking the full potential of the business through capex initiatives and capturing future growth opportunities,’ Brookfield’s RE Invest said.
Befimmo is a Belgian REIT focused on office buildings, meeting centres and coworking spaces. Its portfolio is located in Brussels, the main Belgian towns and cities, and the Grand Duchy of Luxembourg. It is worth €2.7 bn and comprises close to 63 office buildings and more than 950,000 m2 of space.
Closing of the takeover offer is expected in Q3, 2022.
Jean-Philip Vroninks, CEO of Befimmo said ‘We are pleased that Brookfield recognizes the value and quality of our portfolio, the dedication of our team and the future growth opportunities for the Company. We believe this transaction represents the best path forward for our company to benefit from the strategic partnership of one of the world’s most experienced real estate investors as we navigate the evolving environment for office real estate.’
‘Befimmo has built a high-quality irreplaceable office portfolio in attractive European markets,’ said Brad Hyler, managing partner and head of European Real Estate at Brookfield. ‘We look forward to working with the management team and the opportunity to combine our global experience of owning and operating premier office real estate with Befimmo’s established operating platform and attractive development pipeline. We are committed to supporting the Company in unlocking its full potential.’
