Belgian listed real estate developer Immobel has announced that it will not exercise its call option to purchase Proximus Towers in Brussels.
Following extensive negotiations, the company and Belgian telecommunications operator Proximus were unable to reach a mutually beneficial agreement.
Given the current market conditions and the high purchase price of €143 mln, Immobel determined that proceeding with the acquisition would have a substantial negative impact on its financial health.
In March 2022, Proximus reached an agreement with Immobel for the renovation and sale of the building in addition to leasing back part of the renovated space. The closing period was extended in December 2023, and Immobel was required to confirm the purchase by 21 August. Failing to do so, Proximus will retain full ownership of the headquarters.
Immobel will write off the project, resulting in a €48 mln impairment charge, due to costs incurred in 2023, including a €30 mln payment to Proximus in December of that year. The write-off will not affect the company's liquidity. Immobel said it is exploring options in order to maximize the recovery of this impairment.
Immobel secured a building permit for the Proximus Towers project in June 2024 from the Brussels region. The project was to transform the complex into a tower dedicated to Proximus offices and another residential one.
The company remains the sole owner of both the permit and the intellectual property rights related to the project.
Immobel said it regrets the cancellation of the project and the negative impact it will have on stakeholders, especially the 6,000 employees of Proximus. The project was developed in collaboration with Proximus' employees and other stakeholders to create a landmark, sustainable campus that would serve as a thriving hub in the North District of Brussels.
Immobel remains open to exploring alternative options with Proximus that could potentially lead to the realization of the Proximus Towers project.
