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COFINNIMMO sells Egmont complex to a South Korean financial institution



Cofinimmo has announced that it has signed a private agreement with Egmont Luxembourg SARL, by which the latter is granted, under certain conditions in line with market practices, a 99-year leasehold on the Egmont I and II office buildings, located in Brussels. Egmont Luxembourg SARL is an investment vehicle set up by a South Korean financial institution.

The Egmont I (36,616 m²) and Egmont II (16,262 m²) office buildings, located in Brussels’ Central Business District, were built in 1997 and in 2006 respectively to house the Belgian Ministry of Foreign Affairs, Foreign Trade and Cooperation Development. Cofinimmo acquired the Egmont I building in 2004 and built the Egmont II building in 2005-2006. It signed a lease with the Buildings Agency (Régie des Bâtiments) for the letting of the entire office complex, maturing on 31.05.2031. In 2009, it sold 96 % of the future rents from the lease with the Buildings Agency to BNP Paribas Fortis (then named Fortis Banque/Bank). Cofinimmo bought back the future rents from the lease with the Buildings Agency that it had sold to BNP Paribas Fortis in 2009.

The leasehold is granted in exchange of the payment to Cofinimmo at the signature of the deed of a first fee of 369.54 million EUR (i.e. close to 7,000 EUR/aboveground m²), excluding registration rights, a figure above the fair value of the assets on Cofinimmo’s balance sheet at 31.12.2017, plus the price paid to buy back the lease receivables. The current rent stands at 16.7 million EUR. The first fee thus corresponds to a gross rental yield of 4.52 %. Taking into account the estimated rental value of the assets as determined by an independent real estate expert, the gross rental yield stands at 3.30 %.
Tim Harrup
14-02-2018


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