Cofinimmo has purchased shares in four companies, each owner of an office building in Brussels, in a transaction valuing the buildings at €57.9 mln.
The acquired portfolio, representing a total above-ground area of 22,959 m², comprises three properties in the city’s European district and another in the decentralised area of Brussels.
‘The acquisition of the four real estate companies and the four buildings they own are in line with Cofinimmo’s announced strategy,’ said CEO Jean-Edouard Carbonnelle.
‘Besides renovating and redeveloping the buildings already in our portfolio which require it, we also seek to acquire medium-sized assets, partially empty, located in the Central Business District of Brussels, where our current portfolio is fully occupied. These types of buildings can be purchased at attractive prices in the current market conditions, and have a significant value-creation potential,’ Carbonnelle added.
The buildings are currently 88% let with several tenants in occupation. The average weighted residual lease length is 3.3 years until the first break option for the tenants, and 5.8 years until the end of the leases.
The transaction values the buildings at €57.9 mln, an amount in line with an independent valuation, and corresponding to an investment value, parking spaces excluded, of €2,100 / m².
Cofinimmo said the ‘double net’ gross rental yield currently stands at 6.41% and could reach 7.43% in case of full occupation.
The acquisition comes after Cofinimmo purchased another office property in the European district at the end of May, at Avenue des Arts/Kunstlaan 46. Carbonnelle said in both cases, refurbishments were planned.
Cofinimmo’s recent half-year results showed a net current result (group share) of €60 mln, compared to €63 mln the previous year.
