NEXTENSA SA PRESS RELEASE
www.leasinvest.be
Regulated information under embargo till 18/02/2016 - 7.30 AM
Global real estate portfolio1increases to € 940 million thanks to the acquisition of the Royal Depot at the Tour & Taxis site
Net asset value (group share) per share EPRA of € 81.3 (+ 7.6%)
The outlook for 2015 has been confirmed by the realized figures
High occupancy rate of the real estate portfolio at 96%
Rental income stable at € 50.5 million
Net current result is in line with 2014 and amounts to € 25.6 million
Net result amounts to € 30.6 million (2014: € 32.6 million)
Dividend increase to € 4.70 gross per share (+ 3.2%)
1 The global real estate portfolio consists of the direct (buildings) and indirect (mainly participation in Retail Estates) real estate portfolio.
1. Activity report
On 17 December 2015 Leasinvest Real Estate (LRE) has acquired 100% of the shares of T&T Royal Depot SA from Extensa Group SA, owner of the iconic building called 'Royal Depot', on the basis of a long-term lease initially granted by the Port of Brussels2. This acquisition represents a fair value of € 108 million3with a yearly rental income of € 6.06 million resulting in an initial yield of 5.61%, in line with the market. The funding of this acquisition was entirely secured by using available credit lines.
The construction of the Royal Depot was started between 1904 and 1906 based on a design of the architect Ernest Van Humbeeck. The building dates from 1910 and was, used for long-term storage of goods under government supervisions. The Royal Depot was entirely renovated in 2000-2004 into a multifunctional and multi-tenant building with a very diversified rent risk with some 50 tenants spread across 4 floors with a total of 45,204 m² offices, commercial spaces and archives.
Ever since its renovation, the Royal Depot has been nearly fully occupied and the average rent per m² has gradually increased over this period. The Royal Depot is a niche building and an 'experience hub' for the entire Tour & Taxis site. The central location and the combination of an historic building with facilities and the event-like character of the Tour & Taxis site make the Royal Depot a very sought after and unique investment object.
As Extensa Group SA is a 100% subsidiary of Ackermans & van Haaren SA, a company related to LRE4, this transaction was realized in accordance with art. 524 of the Company Code and art. 37 of the RREC Law. This acquisition is in the interest of LRE and fits within its strategy.
In May 2015 the BE-REII GVV Retail Estates SA has realized a public capital increase of € 76.2 million, of which LRE subscribed € 7.6 million. The participation of LRE in Retail Estates amounts to a little over 10%.
2 A 100% subsidiary of LRE will acquire the residual rights at the beginning of 2016.
3 The value agreed upon comprises both the value of the long-term lease and the residual rights, and is not higher than the valuation by the independent real estate expert of LRE in accordance with article 49 of the law of 12 May 2014 on RREC.
4 For more information on this we refer to the corporate governance chapter in the annual financial report over 2015.
Grand Duchy of Luxembourg
On 16 March 2015 Leasinvest Real Estate, via its 100% Luxembourg subsidiary, Leasinvest Immo Lux, has sold the office building located rue Kiem in Strassen in the Grand Duchy of Luxembourg to a private investor for an amount of € 6.3 million (excluding costs) 5.
The building comprises 1,700 m2and 50 parking spaces. The building is located in the periphery and is part of a complex of 3 similar office buildings located between the route d'Arlon and the rue Kiem. The occupancy of the building was only 20% and due to its scale it was not considered as being strategic.
On 20 April 2015 LRE, via its 100% Luxembourg subsidiary, Leasinvest Immo Lux, has concluded a future sales agreement ("vente à terme "), subject to the completion of the building, that was confirmed by a notary deed dated 18 May 2015, for the office project under construction Royal20, located boulevard Royal in the center of the city of Luxembourg in the Grand Duchy of Luxembourg, for an amount of € 62.5 million (excluding VAT) 6. The buyer is a family fund under Luxembourg law, directed by Banque Privée Edmond de Rothschild (Europe). The foreseen reception of the office building and the transfer of the property rights are expected to take place in the second quarter of 2016.
End 2014 a rental contract for the entire building was already concluded with China Merchants Bank for a fixed period of 10 years that will start as of the reception of the building.
Belgium
As already mentioned in the press release on the year results 2014, on 31 December 2014 a sales agreement was signed relating to the divestment of the logistics building Canal Logistics Phase 2 in Neder-over-Heembeek for an amount of € 16.75 million net6. On 29 June 2015 this sale was recorded by a notary deed.
The building, that was sold to an end user, comprises 20,664 m² of storage space and 1,250 m² of offices and is very well located alongside the Brussels -Charleroi canal.
On 20 October 2015 the notarial deed for the sale of a less important non-strategic storage building located Wenenstraat in Meer was recorded for a sales price of € 1.5 million6.
5 The value agreed upon takes into account the provisions of article 40 §1 of the RREC law.
6 The value agreed upon takes into account the provisions of article 40 §1 of the RREC law.
Grand Duchy of Luxembourg
In the Grand Duchy of Luxembourg the spectacular façade of the office project 'Royal20' located boulevard Royal in the centre of the city of Luxembourg was finalized. The complexity of the façade construction demands a high level of high tech engineering in order to realize the building as a unique diamond sculpture.
The reception of the office project and the transfer of property are expected to take place in the second quarter of 2016.
The office building Monnet in the Grand Duchy of Luxembourg, that became vacant as of January 2015, was substantially renovated (a/o new airco system and BREEAM 'excellent' certificate expected). The renovation was finalized end September 2015 and the building of 3,866 m2is again entirely let to different tenants since October 2015.
Via its 100% subsidiary Leasinvest Immo Lux, LRE plans the redevelopment of the existing retail site called Einkaufszentrum Strassen of 22,721 m² at the route d'Arlon in Strassen into a shopping center concept that will, beside shops, a/o comprise a restaurant. The redevelopment will take place in 2 phases in order to take into account the current tenants Adler Fashion, Bâtiself and Roller. The first phase is due for reception in 2017. The reception of phase 2 is foreseen in 2020. This site will be the largest retail park in the Luxembourg periphery at the entrance of the city of Luxembourg.
Belgium
At the request of the tenant SKF their logistics site in Tongres was extended with an additional warehouse of 6,800 m². SKF Logistics Services supports the global supply and distribution chain of the SKF Group, a leading global supplier of products and solutions within rolling bearings, seals, mechatronics, services and lubrication systems. The European distribution center in Tongres takes care of the distribution of spare parts in the EMEA region and plays an essential role within the strong transportation network of SKF.
The rental contract for this new building was concluded for a fixed term of 10 years starting on 04/12/2015.
This building of +/- 6,000 m², located in the central business district (CBD) of Brussels, will be entirely demolished and rebuilt as an AAA building that will meet the highest quality standards as to technology and sustainability (BREEAM
'excellent' certificate expected). Square de Meeûs benefits from a unique location amidst the European district. The urban permit for this project was recent delivered and the foreseen provisional reception of the new building is
LeasInvest Real Estate SCA issued this content on 18 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 18 February 2016 08:35:39 UTC
