Leasinvest Real Estate acquires the 2nd Knauf shopping center in the Grand Duchy of Luxembourg

- Non-regulated press release

1. Acquisition of economic property shopping center Knauf Pommerloch

The in principle agreement signed in August 2012 with the owner of the two Knauf shopping centers located in the North of the Grand Duchy of Luxembourg has been fully realized on 10 September 2013, after the acquisition of the real estate certificates of the first Knauf shopping center Schmiede in September 2012, by the acquisition of the economic property of the second Knauf shopping center in Pommerloch.

On 10 September 2013 Leasinvest Real Estate has acquired, in execution of this agreement, through its 100% subsidiary Leasinvest Immo Lux SA located in Luxembourg, the economic property of Knauf Pommerloch for a value of € 96.5 million through the issue of real estate certificates. This shopping center consists of 60 shops with over 26,000 m² of commercial space and more than 1,000 parking spaces, and 2,700 m² of new offices currently commercialized. The shopping center is entirely let to different renowned retailers and attracts after more than 10 years visitors from both Luxembourg and Belgium.

With the acquisition of these 2 Knauf shopping centers, Leasinvest Immo Lux acquires over 20%[1] of the current total commercial space in the Grand Duchy of Luxembourg and a leading market position in the North of Luxembourg.

2. Stake of retail and Luxembourg increases in the real estate portfolio of Leasinvest Real Estate

By this acquisition the fair value of the consolidated real estate portfolio of Leasinvest Real Estate increases from € 637 million to € 734 million (including developments and the participation in Retail Estates of € 39.1 million based on the share price on 30/06/2013).

Following this acquisition, retail becomes at present the main asset class and represents 40% (30/06/2013: 30%) of the consolidated real estate portfolio of Leasinvest Real Estate. The offices part drops from 44% to 38% and the logistics part amounts to 22% coming from 26%. Luxembourg becomes currently even more important than Belgium with 58% (30/06/2013: 51%) of the total consolidated real estate portfolio.
After this acquisition Leasinvest Immo Lux owns in the Grand Duchy of Luxembourg nearly 100.000 m² of shops in 6 regions, namely Schmiede, Pommerloch, Diekirch, Strassen, Foetz and Dudelange.

The amount of the successful capital increase of end-June 2013 of € 60.7 million, together with the available credit lines, has been used to finance this acquisition of € 96.5 million.

Jean-Louis Appelmans, CEO: "This important investment represents for Leasinvest Real Estate the successful realization of its strategic reorientation towards more retail in our portfolio. As announced in the outlook in the half-year financial report 2013, this investment will also have an important positive impact on the results of the last quarter of 2013, but mainly on the entire year 2014."

For more information, contact:
Leasinvest Real Estate
Jean-Louis Appelmans
T: +32 3 238 98 77
E: jeanlouis.appelmans@leasinvest.be

Leasinvest Real Estate SCA

Real estate investment trust (sicafi/vastgoedbevak) Leasinvest Real Estate SCA mainly invests in high quality and well-located shops, offices and logistics buildings in the Grand Duchy of Luxembourg and in Belgium. The consolidated real estate portfolio comprises 53 buildings and represents a total surface of 424,858 m².
The sicafi is listed on Euronext Brussels and has a market capitalization of € 333 million (value 9 September 2013).


[1] Source: Cushman & Wakefield, Marketbeat Retail and Office market spring edition, based on m².