Brussels-based property investor Cofinimmo has entered into an agreement to acquire 90% of Immobrew, a real estate subsidiary of beer brewer Inbev, for EUR 419 mln, reflecting an initial yield of 5.8%. Immobrew directly owns 824 pubs and some residential assets in Belgium and indirectly holds a further 245 pubs in the Netherlands.

Brussels-based property investor Cofinimmo has entered into an agreement to acquire 90% of Immobrew, a real estate subsidiary of beer brewer Inbev, for EUR 419 mln, reflecting an initial yield of 5.8%. Immobrew directly owns 824 pubs and some residential assets in Belgium and indirectly holds a further 245 pubs in the Netherlands.

Inbev is to retain a 10% interest in its real estate unit and will lease the pubs back in a sale-and-leaseback agreement for 27 years, at a starting rent of just under EUR 27 mln a year. The beer brewer said the sale of the pubs was consistent with its commitment to free up capital invested in non-core activities in order to focus on its core beer business.

Cofinimmo is listed on Euronext Brussels and is the largest investor in rental property in Belgium. Offices make up the largest proportion of the company's 1 million m2 portfolio that is valued at EUR 2.4 bn. At the end of May, Cofinimmo acquired nine nursing homes and 25 hectares of land for an undisclosed amount as part of the diversification of its portfolio. The company announced two weeks later that it planned to invest a further EUR 1 bn in real estate in the near future.

Jean-Edouard Carbonnelle, chief financial officer of Cofinimmo, said: 'We are confident that our partnership with Inbev will be successful and that this diversification into a new type of real estate for Cofinimmo will create increased returns for our shareholders and an improved risk allocation.'

The transaction will be financed by new credit facilities and is expected to close by the end of 2007. Investment bank Lazard acted as sole financial advisor to Inbev.