“AvH, which owns today both 30.01% of LRE and 100% of
“’Leasinvest 2.0’ will become a real estate player with a unique market position that combines the best of both worlds: recurring rental income from real estate investments and added value potential from development activities. In addition, ‘Leasinvest 2.0’ will operate from a thorough sustainability vision in which it will make a lasting contribution to the development and optimization of its real estate portfolio in
A unique combination
This is in line with the intention to transform the Company into a listed integrated real estate player, which on the one hand will invest and on the other hand will develop real estate, either to sell or to keep in portfolio. This new business model implies several fundamental changes to the framework in which the Company operates today.
“Leasinvest 2.0” will combine a proven track record of an international real estate investor with leading (re)development capabilities.
This is made possible by the business combination of:
-
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Bringing together the real estate positions and the complimentary expertise of the teams of both companies will create synergies and form a solid base for a strategy focused on realizing and managing innovative mixed-use urban developments, thus creating new city districts or reviving existing ones. With this focus, the Company can combine recurring rental income with attractive capital gains.
This structure will provide LRE increased agility in the current volatile market environment through targeted arbitrages in its portfolio or redevelopments of existing buildings. In addition, the reinforced balance sheet structure will allow to take a proactive approach towards new opportunities in its core or even in new markets.
The new structure will have a consolidated balance sheet total of approximately € 1,9 billion with equity capital of +/- € 800 million. The combined investment portfolio will mainly consist of offices (47%) and secondly retail (39%). The “other” section includes on the one hand the remaining logistic buildings from the Leasinvest portfolio and on the other hand the buildings on the Tour & Taxis site that serve for events (The Sheds and
By acquiring the iconic heritage buildings of Tour & Taxis (“T&T”), with “Gare Maritime” as its flagship, coupled with Leasinvest’s CSR-strategy, the new entity has all the strengths to be a reference in terms of sustainability in the real estate market.
The development potential, which arises entirely from
xResidential 208 300 m²
xOffices 124 300 m²
xRetail 3 400 m²
xOther 5 900 m²
About two thirds of these developments are planned on the site of Tour & Taxis in
Through the participation (50%) of
“The complementarity of our assets and know-how provides a very solid foundation for further development and at the same time encourages us to further translate our vision into projects that have a positive impact for all stakeholders.
A new structure
In the context of this proposed transaction, 100% of the shares of
Additionally, it will be proposed to give up the BE-REIT status and to convert the Company into a limited liability company with a (collegial) board of directors under the CCA (Code of Companies and Associations), whereby the management of the Company will be internalized by means of a contribution in kind of the shares of
The aforementioned decisions will be submitted for approval to an Extraordinary General Meeting of the Company after (i) approval of the Board of Directors of
The exit of the BE-REIT status triggers, under most credit agreements concluded by
The exit of the BE-REIT status will also activate a clause of reimbursement under the outstanding bond loan of
Subject to the completion of the due diligence, LREM and
Leasinvest 2.0 will pursue a dividend policy based on a payment of 40-60% of the EPRA Profit linked to the investment portfolio. Based on this basis, Leasinvest 2.0 strives moreover towards an increase of its dividend, partly thanks to the potential of exceptional realized gains on the sale of investment properties or profits from development projects.
“Leasinvest 2.0” has the ambition to maintain the EPRA status and as such to create a unique investment opportunity within the Belgian EPRA universe.
The management will be available for further explanation as from Wednesday evening and will also make a video cast available on the website www.leasinvest.be as from
For more information, contact Chief Executive Officer T: +32 3 238 98 77 E: michel.van.geyte@leasinvest.be |
On At present, the total fair value of the directly held real estate portfolio of Leasinvest amounts to € 1.12 billion, spread across the Grand Duchy of Moreover, Leasinvest is one of the most important real estate investors in The public BE-REIT is listed on Euronext Brussels and has a market capitalization of € 465 million (value on 12 May 2021). This announcement contains statements that are "forward-looking statements" or may be considered such. These forward-looking statements may be identified by the use of forward-looking terminology, including the words "believe," "estimate," "anticipate," "expect," "intend," "may," "will," "plan," "continue," "ongoing," "possible," "predict," "intend," "pursue," "try," "would" or "will," and include statements from the Company about the intended results of its strategy. Forward-looking statements, by their nature, involve risks and uncertainties, and readers have been warned that none of these forward-looking statements warrant any guarantee of future results. The Company's actual results may differ materially from those predicted by the forward-looking statements. The Company makes no commitment to provide updates or adjustments to these forward-looking statements unless legally required. |
Attachment
- 2021 05 12_LRE Growth story_ENG_Final
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