Leasinvest builds new office for Cegelec

Belgian real estate investment trust Leasinvest Real Estate said it has closed a leasing agreement with Cegelec for a new office that LeaseInvest will build within the Alpha Campus business park in Antwerp. Cegelec, a French technological services company, will lease the asset for a fixed term of 15 years starting from completion of the building which is scheduled for the end of 2009.

Cegelec wanted to occupy a new tailor-made corporate building as part of a relocation of its Antwerp activities. Under the agreement, Leasinvest will acquire the land with a surface of 6,725 m² from Baarbeek for a market price. The newly planned building will consist of 3,487 m² of office space, a warehouse of 639 m² and 125 outdoor parking spaces. It will be the second building developed and financed by Leaseinvest for Cegelec.

The gross initial yield of this deal amounts to 7.5%, based on cost for the building of EUR 6.2mln, Leasinvest said in a statement.

Jean-Louis Appelmans, CEO Leasinvest: 'With the conclusion of this real estate leasing we will be adding a very good tenant Cegelec and a highly accessible site to our portfolio. This long-term agreement also improves the duration of our portfolio.'

Leasinvest Real Estate invests in high-quality and well-situated office, logistics and retail buildings in Belgium and the Grand Duchy of Luxembourg. At present, the real estate portfolio of Leasinvest comprises 53 buildings, of which 42 situated in Belgium and 11 in the Grand Duchy of Luxembourg, with a total value of nearly EUR 500mln.