Belgian listed property company Cofinimmo said it had sold its long-lease rights on a number of office buildings in the periphery of Brussels for EUR 77 mln, equivalent to a realised gain of 40 euro cents per ordinary share.
Belgian listed property company Cofinimmo said it had sold its long-lease rights on a number of office buildings in the periphery of Brussels for EUR 77 mln, equivalent to a realised gain of 40 euro cents per ordinary share.
Specifically, Cofinimmo sold long-lease rights of 99 years on 19 buildings in the Keiberg Business Park, or its entire portfolio in this park, as well as the two buildings Woluwe Garden 26 and 30. The lease rights were sold to an indirect subsidiary controlled 90% by insurer AIG and 10% by property investment managers Rockspring.
Cofinimmo said the lease transfers are part of an active asset management strategy aimed at ensuring effective use of the company’s capital. Cofinimmo said it realised a gain of EUR 4 mln from the sale, 5.58% higher than an expert investment value and 8.2% above fair value.
Cofinimmo said the transaction was indicative of the fact the real estate investment market has remained active despite the subprime crisis. Following the deal, the share of office buildings located in the Brussels outskirts as a percentage of Cofinimmo’s total portfolio value declined to 5.8% from 8%.
Colliers-EPMC acted for Cofinimmo.
