Cofinimmo disposes of receivables at Brussels office complex

Listed Belgian real estate firm Cofinimmo has sold future lease receivables for two office buildings in Brussels to BNP Paribas Fortis for just under EUR 200 mln.

Cofinimmo said that the banking group paid EUR 199.6 mln for 96% of the future indexed lease rent on the office buildings Egmont I and Egmont II. The transaction also covered an amount due for the works carried out at these buildings for the account of the occupant.

The receivables which are disposed of relate to the year 2011 and beyond. Cofinimmo said that it retained 100% of the lease payments pertaining to the years 2009 and 2010, 'in order not to affect their recurrent cash flow income'.

Subsequent to this disposal, Cofinimmo’s consolidated debt ratio, as laid down by the regulation governing Sicafis1, is reduced by 3.08 percentage points. The ratio stood at 52.94% at end-June 2009. 'Hence, if this disposal would have been carried out before the end of the first half-year, it would have reached 49.86%,' Cofinimmo said.

The Belgian company said the transaction tallied with Cofinimmo's financing policy and allowed the company to efficiently reinforce its capital structure and to balance out its sources and applications of funds.

The proceeds resulting from the disposal, and those expected to be recorded from ongoing office disposals approaching EUR 40 mln, fully cover Cofinimmo's investment commitments for the second half-year of 2009 (EUR 46 mln) and the entire year 2010 (EUR 193 mln), Cofinimmo added.

Cofinimmo indicated that it did not have any other significant investment commitments beyond this timeframe.

The tenants of the Egmont I and Egmont II complex, located rue des Petits Carmes in the Brussels centre, are the Belgian Federal Public Service of Foreign Affairs, Foreign Trade and Development Aid.