German property company IVG Immobilien is buying the Luxembourg headquarters of Clearstream International, Deutsche Boerse Group's securities settlement and custody provider, for EUR 350 mln. The complex in the Kirchberg area of Luxembourg City comprises four buildings, and Clearstream is to lease back the two it is using. Deutsche Boerse, the German stock exchange group, rents all its other office space.
German property company IVG Immobilien is buying the Luxembourg headquarters of Clearstream International, Deutsche Boerse Group's securities settlement and custody provider, for EUR 350 mln. The complex in the Kirchberg area of Luxembourg City comprises four buildings, and Clearstream is to lease back the two it is using. Deutsche Boerse, the German stock exchange group, rents all its other office space.
'The sale-and-leaseback arrangement will see Deutsche Boerse Group apply this concept to the Clearstream headquarters in Luxembourg too, and will allow the company to benefit, at the same time, from the very positive current market environment for commercial real estate in Luxembourg,' Deutsche Boerse said in a statement.
The sale price is considerably higher than the book value of around EUR 230 mln. Deutsche Boerse will receive the book profit in 2008 via dividend payments from Clearstream. The transaction requires approval by the supervisory board of Deutsche Boerse but the deal is expected to close before the end of this year.
The lease agreement between Clearstream and the related real estate companies who own the buildings has a 10-year term from the conclusion date of the transaction, with two five-year extension options each for Clearstream.
