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.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
