Belgian property company Cofinimmo said on Thursday that it has sold four leaseholds and freeholds of buildings for EUR 111 mln to raise financing for new investments. The company arranged the sale with a subsidiary of the Société Générale Group for the 15-year leasehold of a building in Brussels let to the European Commission for a total of EUR 23 mln. Cofinimmo is retaining ownership of the building.
Belgian property company Cofinimmo said on Thursday that it has sold four leaseholds and freeholds of buildings for EUR 111 mln to raise financing for new investments. The company arranged the sale with a subsidiary of the Société Générale Group for the 15-year leasehold of a building in Brussels let to the European Commission for a total of EUR 23 mln. Cofinimmo is retaining ownership of the building.
The Belgian company has also sold to Fortis Bank 90% of the finance lease receivables due by the City of Antwerp on the new Fire Station located in Brussels for EUR 28 mln. At the end of the financial lease, the building will be transferred automatically to the City of Antwerp for free. Cofinimmo also sold to the same bank the leaseholds on Colonel Bourg 124 located in Brussels and Maire in Tournai for a total amount of EUR 19.51 mln. Cofinimmo retains ownership of these two assets, which are let to the Belgian state.
The proceeds from the disposals will be used to finance the investment pipeline. Over the years 2009-2010 Cofinimmo has investment commitments amounting to EUR 298 mln, of which EUR 166 mln in the nursing home sector and EUR 132 mln in the office sector (two office business parks and one building). These investments are already 60% pre-let for an average lease term of 21 years.
Additionally, Cofinimmo is negotiating the disposal of a number of properties at or somewhat above book value. Due diligence is being conducted for the sale of real estate for an amount approaching EUR 24 mln.
Finally, Cofinimmo said it is planning to raise EUR 14 mln of extra capital through the issue of new shares.
