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Impact of Covid on Cofinimmo’s 30 million Euro annual rental income from AB InBev



Cofinimmo generates yearly rental income of 30 million Euros from AB InBev from around 1,000 cafés and restaurants in Belgium and the Netherlands. This represents 11.6 percent of all its rental income. In 2007, Cofinimmo paid 357 million Euros for the 90 percent acquisition of 1,068 ABN in InBev’s catering establishments, of which 823 in Belgium. It was a remarkable contract. A lease concluded for 27 years, whereby the rent due by the operator is automatically indexed annually and paid by the main tenant.

With the Corona-Crisis, AB-InBev annulled the café operators’ rent for April. There is a deferment of payment for May. AB InBev wants Cofinimmo to make a contribution. Cofinimmo will only confirm that discussions are ongoing. If a series of operators go bankrupt, the chances that AB InBev will immediately find a new operator are slight. Nor is it certain that Cofinimmo will be able to sell the property for a capital gain or rent it to another operator. This could, in addition, affect Cofinimmo’s financial results in 2020.

Read more in the report of De Tijd [ AB InBev riskeert fikse vastgoedkater door corona ]
Tim Harrup
28-05-2020


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