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Immobel resilient real estate development strategy in the current COVID-19 crisis situation

Real estate developer Immobel has outlined some of the impact of the current coronavirus crisis on its business, and has released details of a major transaction.Starting with the impact of the crisis, Immobel says that while there is a noticeable impact on the business and a delay in residential property sales, the company had already contracted 65% of targeted sales for 2020 as at the end of March and it is on track with the permit applications for its new projects. Construction has been impacted in most countries where Immobel is active. In Belgium, larger construction sites were halted at the start of the lockdown but have resumed in the meantime. Smaller sites nevertheless continued operating. Still with coronavirus in mind, the company says that it has also reviewed its fixed costs, which could be reduced by up to 30% if necessary.

Immobel goes on to say that its strategy – a focus on residential real estate projects along with top-tier office projects in prime locations – allows for sustainable growth. Its portfolio at the end of 2019 consisted of some 4.5 billion Euros worth of projects, of which residential real estate assets in prime locations across major European cities accounted for around 75%.

Major lease deal
Moving on to the latest transaction, Immobel points out that on April 22nd, it signed a 9-year lease for a new BREEAM-excellent office building in the European quarter in Brussels offering surface area of around 14,200 m², with ING bank. The building is designed by a duo comprising Jaspers-Eyers and ‘Office’ architects (Kersten Geers and David van Severen). Broker JLL acted for ING.
The building itself is located at Rue du Commerce 46 and is a 12-floor office building of around 14,200 m². It also offers 70 underground parking spaces and some electric vehicle charging points, along bicycle parking spaces. Two rooftop terraces and a private garden complete the offering.
Delivery is expected during the third quarter of 2022.
Tim Harrup
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