CA Immo buys out Union Investment Real Estate AG
CA Immo has concluded negotiations with Union Investment Real Estate AG on buying the company out by purchasing a 49% share in Prague’s Danube House and Budapest’s Infopark A office buildings, according to a press statement sent to the Budapest Business Journal today.
The deal, which has already been closed, will make an immediate positive contribution to long-term profitability (FFO I) by around EUR 3 million. CA Immo is raising its stake from 51% to 100% in the two buildings through the deal.
As a result of this transaction, investment properties worth around EUR 80 mln will be included in the balance sheet; due to full consolidation of assets (on an annualized basis), the groupʼs rental income will go up by around EUR 6 mln.
With an occupancy rate of 97.5% (gauged at September 30, 2016), both the Danube House office building in Prague, with an area of 21,400 square meters, and the Infopark building in Budapest, covering 13,700 sqm, are almost fully let; the gross yield of the portfolio was 7.0% as at the last balance sheet date. The loan-to-value ratio of the portfolio comes to around 40%, and liabilities will be fully repaid with equity in the wake of the purchase process.
“This further reduction of our minority shareholdings increases the efficiency of our portfolio management, strengthens our long-term profitability, and represents another major step towards expanding the core office property portfolio in our core cities,” said Frank Nickel, CEO of CA Immo.
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