End 2017 Leasinvest Real Estate realized the further extension of an indirect investment in the Grand Duchy of Luxembourg and leased 100% of the Mercator building in Luxembourg and 25% of the office building under construction Treesquare in Brussels. The extension of the Frun© Retail park Asten in Austria that will soon be delivered, is also nearly entirely leased.
1. Listed real estate certificate Lux Airport
Leasinvest Real Estate has over the last years systematically increased its participation in the listed real estate certificate "Lux Airport" that comprises 2 office buildings (block B and E) of approximately 8,465 m² in the business park EBBC. European Bank & Business Center (EBBC) consists in total of 6 office buildings with a global surface of 26,000 m² located in the immediate vicinity of the Luxembourg airport. In the course of the fourth quarter of 2017, Leasinvest Real Estate has crossed the 2/3rd threshold of the issued Lux Airport real estate certificates, which, according to our valuation rules, leads to this investment no longer - according to IAS 39 - having to be considered as a non-current financial asset, but as an investment property according to IAS 40. Consequently, the distributed coupons by the real estate certificate received end March 2017, and the future coupons, will from now on be recognized as rental income, and the booked capital gains historically booked in equity will as a one off be recycled through the portfolio result in 2017. For the financial year 2017 ca
€ 1.3 million of additional rental income and ca € 7.1 million of revaluation capital gain, will as a result positively influence both the net result and the EPRA earnings (only for the impact on rental income).
Jean-Louis Appelmans, CEO: "This investment strengthens our position in the Grand Duchy of Luxembourg at this top location near the Luxembourg airport, as Leasinvest is already the full owner of the building EBBC (block D) on the same site, a multi-tenant building of 3,623 m² with an occupancy rate of over 95%."
2. 2 Mercator in Luxembourg 100% leased
On 3 May 2017, subsidiary Leasinvest Immo Lux became the owner, via the take-over of 100% of the shares of the company Mercator Sàrl, of the office building Mercator situated route d'Arlon, no 110 - 112 in the City of Luxembourg, comprising 8,641 m² of offices, spread across 5 floors, and 104 parking spaces. This building is excellently located in the capital of the Grand Duchy at the route d'Arlon, one of the main access roads to Luxembourg City. At the time of the acquisition Mercator was leased for 42%. Following the high demand for offices in Luxembourg, the occupancy rate amounts to 100% in the meantime, by the conclusion of 2 new rental contracts for respectively 1,918 m² and 2,770 m² of office space.
Jean-Louis Appelmans, CEO: "Mercator is a typical 'value-add' building for which we succeed in realizing that kind of opportunity as well as a higher average yield thanks to our sound expertise of the Luxembourg office market."
2. 1 Redevelopment Treesquare in CBD of Brussels already pre-let for 25%
For the building Treesquare 3 rental contracts could already be concluded prior to its delivery at the end of Q1 2018. These rental contracts all enter into force as of 1 March 2018 and concern a total of 1,600 m2.
These three leases confirm the potential for new high-quality and sustainable buildings in the Central Business District of Brussels. Further negotiations with potential tenants are ongoing and are expected to soon result in the conclusion of new rental contracts.
3. Extension Frun© Retail park Asten
For the Frun© Retail park Asten an extension is built, that is nearly entirely leased and that will be delivered shortly. With this extension of over 1,000 m2 the Frun© Retail park Asten reaches at once the top 10 of largest retail parks in Austria (> 20,000 m2 of gross letting area).
For more information, contact
Leasinvest Real Estate Leasinvest Real Estate
Jean-Louis Appelmans Michel Van Geyte
Chief Executive Officer Chief Investment Officer
T: +32 3 238 98 77 T: +32 3 238 98 77
E: firstname.lastname@example.org E: email@example.com
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 (including the transactions after the closing of the 3rd quarter 2017) the total fair value of the directly held real estate portfolio of Leasinvest amounts to € 902 million on 24 January 2018, 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.