Belgian property investment fund Intervest Retail has sold its factory outlet centre in Messancy, Luxembourg for EUR 12 mln. The management of the fund said that it expects the sale will strongly improve Intervest Retail's operating result despite the fact that the sale price was EUR 10.5 mln below the book price published in September 2007. The buyer was a property fund managed by Henderson Global Investors.
Belgian property investment fund Intervest Retail has sold its factory outlet centre in Messancy, Luxembourg for EUR 12 mln. The management of the fund said that it expects the sale will strongly improve Intervest Retail's operating result despite the fact that the sale price was EUR 10.5 mln below the book price published in September 2007. The buyer was a property fund managed by Henderson Global Investors.
Intervest Retail is a 72.4% subsidiary of Rotterdam-based Vastned Retail, a pan-European retail property investor. According to Intervest Retail, the occupancy rate of its total portfolio will rise from 96.5 % to 99,3 %, as a result of the sale. The company said that despite the commercial efforts of the investment fund, the outlet centre had a negative operating result, and no improvement was anticipated in the short term.
Factory Shopping Messancy, which represents approximately 10% of the value of the investment fund's portfolio, comprises 50 shops on a retail surface area of 18,466 m2.
Jean-Paul Sols, CEO of Intervest Retail: 'This disposal represents a very important step towards improving the return of the investment fund. In spite of the capital loss realised, the sale will have an immediate positive impact on the dividend which Intervest Retail can distribute to its shareholders. The financial means released, moreover, will be used to make investments that yield a solid return.'
