Austrian listed property firm CA Immobilien Anlagen said on Friday it has acquired the remaining share it did not already own in the E-Portfolio from investment partner, the European Bank for Reconstruction and Development (EBRD).
Austrian listed property firm CA Immobilien Anlagen said on Friday it has acquired the remaining share it did not already own in the E-Portfolio from investment partner, the European Bank for Reconstruction and Development (EBRD).
The portfolio, until now majority-owned by CA Immo and thus consolidated 'at equity', consists of eight office buildings with a book value of €486 mln as well as four land plots valued at €25 mln.
The package includes several office buildings in Prague (Amazon Court, Nile House, Kavci Hory), Bucharest (Europe House, River Place), Budapest (City Gate, Infopark West) and Zagreb (Zagrebtower).
The gross purchase price amounts to around €60 mln and reflects a roughly 50% discount to the book value of the portfolio.
CA Immo previously owned a 75% interest in the assets.
Following the acquisition, the portfolio will be fully consolidated, adding €500 mln of investment assets to the group's balance sheet and around €35 mln of rents to the group's rental income.
The transaction is expected to close in July, and will be immediately accretive to recurring earnings.
All the properties are let above 90%, with an average occupancy of 94.5% as at March 31, 2015. The gross yield of the portfolio amounted to 7.9% at end March, 2015. The loan-to-value ratio of the portfolio stands at around 50%.
EBRD has been a joint venture partner of Europolis, which was later on taken over by CA Immo, since 2001.
'The buy-out of EBRD is perfectly in line with our strategy to expand existing core office holdings in our core cities and is an important step to further boost our recurring earnings,' said Bruno Ettenauer, Chief Executive Officer of CA Immo. 'Furthermore, the acquisition also increases once more the efficiency of our portfolio management and allows an optimization of the underlying financing structure of the portfolio.'