Sicafi Befimmo SCA has struck a deal relating to the purchase of Axento's shares - a public limited company governed by Luxembourg law and owner of the property project developed by CIP Luxembourg S.A.
This upmarket project is prominently positioned in Luxembourg on the Kirchberg Plateau (Grünewald district) along avenue John Fitzgerald Kennedy, right opposite the Auchan shopping centre. It aims at building and renting a brand new office block (10,500m²) and retail spaces (1,600 m²).
Prize-winner of the July 2006 competition organised by the Fonds d'Urbanisation et d'Aménagement du Plateau du Kirchberg, the sheer quality of its architecture - signed by architect Arlette Schneiders - is bound to turn it into a landmark in the heart of the Kirchberg.
Building works are scheduled to begin once planning permission is granted in the autumn of 2007. They are to end eighteen months later, in the first half of 2009, by which time the investment value of the project thus held by Axento S.A. will amount to €95.4 million.
Capitalising on an eighteen-month rental guarantee, Befimmo's cash-flow per share should then increase annually by €0.15 (i.e. 3.4%), all other things remaining equal.
This latest purchase fully squares with Befimmo's strategy. Indeed, the quality and location of this project make it an object of envy indicating promising prospects of value creation, not least in a Luxembourg property market hampered by a supply of new office accommodations structurally below demand.
The transaction, due to be finally completed in 2009, has been managed through Jones Lang LaSalle.
Befimmo is a fixed capital real estate investment trust (Sicafi) that, as an Asset Manager, manages an office building portfolio mainly located in Brussels. Befimmo seeks to develop a strategy geared to maximizing its cash-flows over long periods of time and creating added value. Befimmo aims at offering its shareholders a steadily increasing dividend.
Further information
Further information may be obtained at the head office:
Emilie Delacroix
Corporate Communication Officer
Befimmo SCA
Chaussée de Wavre 1945
1160 Brussels.
Tel: 02/679.38.60
Fax: 02/679.38.66
Email :contact@befimmo.be
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