Leasinvest Real Estate SCA: Leasinvest Real Estate acquires office building at top location in European district in Brussels (BE) & concludes important lease in Cloche d’Or (LU)

1. Acquisition office building Montoyer 14 in 1000 Brussels (BE)

On 14 September 2018 Leasinvest Real Estate signed a binding agreement with the fund Next Estate Income Fund ("NEIF”), managed by BNP Paribas REIM Luxembourg, relating to the acquisition of 100% of the shares of the company NEIF Montoyer SPRL, holding a leasehold with a remaining duration of 94 years on the office building Montoyer 14, situated at the angle of the rue Montoyer and rue de l’Industrie in BE-1000 Brussels. This transaction represents an investment of € 11.35 million, in line with the value estimated by the independent real estate expert. This agreement is subject to a number of usual conditions precedent. The Closing of this transaction is expected in the second half of October 2018.

Montoyer 14, after the departure of the current tenant, the United Nations, beginning of next year, will be entirely redeveloped into a prominent office building, corresponding to the current and future standards of sustainability and design/experience. Within this scope, Leasinvest Real Estate entered into a partnership with a young and dynamic promotor ION that will, in collaboration with Leasinvest, manage the entire development program, and will be responsible for coordination and project management. The new building is expected to comprise approximately 4,000 m² of state-of-the-art office space.

The redevelopment would be designed by A2RC Architects (Brussels), and is expected to be completed in the first quarter of 2021. The expected rent amounts to € 275/m², with an ERV of € 1.2 million.

For Leasinvest Real Estate this is the third office project in the European district in Brussels in two years of time, after Treesquare (Square de Meeûs), let for 70%, and Montoyer 63/65 (rue Montoyer), for which a 21-year leasehold was granted to the European Parliament, and this confirms Leasinvest Real Estate’s strategy to further develop its current offices portfolio with high-quality projects at top locations.

For ION, after past successful developments in Molenbeek, Anderlecht and diverse projects in the Brussels’ periphery (Tervuren, Halle, Sint-Pieters-Leeuw, Leuven…) this is the first office project in Brussels, which confirms, considering the planned opening of an office in the capital in the course of October of this year, its ambition to further extend its current projects portfolio with a pipeline of € 1.2 billion, with projects in Brussels.

 Michel Van Geyte, CEO Leasinvest Real Estate: "Thanks to this transaction, Leasinvest Real Estate strengthens its position in the Leopold district of Brussels, the prime office location in Belgium, and confirms the development of its Core Activities”.

Karim Zouaoui, Business Development Director ION: "We are pleased with this transaction and with our partnership with Leasinvest, proof of our ambition and strategy for main cities in general and Brussels in particular”.

2. Lease Cloche d’Or in the Grand Duchy of Luxembourg

End December 2018 the current tenant leaves the building located Rue Guillaume J. Kroll in the Cloche d’Or district in the Grand Duchy of Luxembourg.

A new rental agreement was concluded in the meanwhile with Mazars Luxembourg SA for a fixed 9-year term, starting on 1 May 2019. This rental contract relates to 2,200 m² of office space and 69 parking spaces, and also comprises an option on the lease of the remaining office space (approximately 1,400 m²). After the departure of the current tenant, renovation works to the façade and the restaurant are scheduled, besides the refurbishment of the outdoor space. Consequently, the rent level will increase from € 17/m²/month to € 24/m²/month.

Mazars is an international, integrated and independent organisation, specialised in audit, accounting, tax and outsourcing.

After Kirchberg, Cloche d’Or is the new district with large-scale mixed-use developments for the further extension of Luxembourg-city. The site comprises a total of 80 ha and is the main urban development project in ‘La Grande Région’.
The abovementioned mixed-use building of Leasinvest is part of the portfolio since 2006 and comprises a total of 19,987 m², with an industrial complex which serves as service center, distributer, wholesale in sanitary fittings, on the one hand, and office complex on the other hand.

For more information, contact

Leasinvest Real Estate
Michel Van Geyte
Chief Executive Officer
T: +32 3 238 98 77
E: michel.van.geyte@leasinvest.be

ON LEASINVEST REAL ESTATE SCA

Public BE-REIT (SIR/GVV) Leasinvest Real Estate SCA invests in high quality and well-located retail buildings and offices in the Grand Duchy of Luxembourg, Belgium and Austria.
At present the total fair value of the directly held real estate portfolio of Leasinvest amounts to € 922 million, spread across the Grand Duchy of Luxembourg (54%), Belgium (35%) and Austria (11%).
Moreover, Leasinvest is one of the most important real estate investors in Luxembourg.
The public BE-REIT is listed on Euronext Brussels and has a market capitalization of approximately € 490 million (value 13 September 2018).

ON ION

ION is a fast growing promotor and real estate investor located at Waregem, founded in 2011 by Davy Demuynck, Kristof Vanfleteren and Paul Thiers. Its portfolio consists of over 40 real estate projects spread across Belgium, with a market value of ca 1.2 billion euro, high-quality architecture and sustainability being its core focus.
A strong and dynamic team of 56 people disposes of the required commercial, technical, financial and legal expertise to realize different complex residential and commercial property developments according to the latest high standards for all its stakeholders.
Besides its head office in Waregem, IO, will open, in October 2018, its office in the centre of Brussels.
More information on current projects on www.ion.be.

Attachment

• 2018 09 14 LRE acquisition M14_ENG