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Leasinvest Real Estate Comm. VA (EBR:LEAS) Leasinvest Immo Lux, 96,5% subsidiary of Leasinvest Real Estate, has acquired a strategically located office project at the avenue Monterey 35 in the City of Luxembourg. By this acquisition Leasinvest Real Estate will increase its Luxembourg portfolio by almost 10 million euros, after completion and delivery of the project.
Leasinvest Real Estate acquires top location in Luxembourg
Leasinvest Immo Lux, subsidiary of Leasinvest Real Estate, has acquired, directly, 100% of the Luxembourg company Montimmo SA for an amount of 3.1 million euros[1]. The expected total investment of this acquisition and the further completion of the office project of Montimmo SA will amount to approximately 10 million euros. An initial gross return of nearly 7% on the project is expected, after completion, delivery and letting.
The project is located at one of the main streets of the Central Business District of the City of Luxembourg and comprises 1,585 m² of office space and 15 underground parking spaces. The constructed building will be further completed by Leasinvest Immo Lux, through Montimmo SA.
The demand for these top located office buildings remains very strong on the Luxembourg market and it is expected that the building will be entirely let, even before the completion, foreseen for mid-2009.
This acquisition entirely fits within the well-considered growth of the portfolio and the further geographical diversification of Leasinvest Real Estate.
Leasinvest invests and further (re)develops in Luxembourg
Since the major take over, mid 2006 of the Luxembourg open-ended real estate fund (sicav/bevek) Dexia Immo Lux (currently Leasinvest Immo Lux) Luxembourg is the second home market of Leasinvest Real Estate after Belgium with approximately 33% of the total consolidated portfolio. The take over of Montimmo SA is the first purchase in Luxembourg since this important acquisition. The total Luxembourg portfolio, including Montimmo SA and after its completion and delivery, will comprise 12 buildings with a value of approximately 180 million euros. In Luxembourg Leasinvest Real Estate (re)develops successfully through Leasinvest Immo Lux, next to the realisation of the redevelopment project of the CFM site located at Cloche d'Or in Luxembourg, finished and completed during the 2nd quarter of 2008 and already pre-let to the current tenants, the ongoing redevelopment of the Bian site also at Cloche d'Or, and now, the development project of the top location 'avenue Monterey'.
Jean-Louis Appelmans, CEO of Leasinvest: 'Leasinvest Real Estate, as a professional real estate asset manager, has also acquired an important in-house building expertise, which we successfully apply in our real estate portfolio, confirming our strategy of value creation for our shareholders'. .
For more information, contact: Leasinvest Real Estate Jean-Louis Appelmans CEO T: +32 3 238 98 77 E: jeanlouis.appelmans@leasinvest.be
Real estate investment trust Leasinvest Real Estate SCA invests in high-quality and well located office, logistics and retail buildings in Belgium and the Grand Duchy of Luxembourg. At present the real estate portfolio of Leasinvest comprises 52 buildings in operation, of which 41 in Belgium and 11 in the Grand Duchy of Luxembourg, with a total value of the real estate of nearly 490 million euros. The real estate fund is listed on NYSE Euronext Brussels and has a market capitalisation of approximately 277 million euros.
[1] For the definition of the acquisition price, the value taken into account for the constructed building is 4.8% higher than the value as defined by the independent valuer of the constructed building, which takes into account the potential gain after completion of the office project.
