Leasinvest Real Estate

LRE is the Belgian equivalent of a real estate investment trust and specialises in the country’s business park market. It has recently entered the field of development Leasinvest Real Estate (LRE) is a Belgium Sicafi – the country’s equivalent of a real estate investment trust – which specialises in developing and investing in business parks. Established in 1999, it is listed on the Euronext Brussels stock exchange and owns a property portfolio worth around €225m, which it plans to increase to €500m in the coming years. LRE invests in high-quality office buildings and semi-industrial units, particularly on the edges of Belgian cities, with a special emphasis on the Brussels/Ghent/ Antwerp triangle. The fund has 49 assets totalling 170 000m2 across 12 different locations, including the 36,000m2 Brixton Business Park in Zaventem; the 27,600m2 Prins Boudewijnlaan 7 in Kontich; the 21,750m2 Riverside Business Park in Anderlecht; and the 12,680m2 Extensa Square in Evere. The company’s most recent acquisition was the final two buildings on the Axxes Business Park in Merelbeke near Ghent. It paid €10.2m for the two buildings and now fully owns the 28,000m2 scheme. LRE believes growth is an important element in its development strategy, but does not see it as an end in itself. Its motives for growth are to exploit economies of scale, to increase share liquidity and to attract Belgian and international investors. The fund is considering a number of options for expansion, which include extending its borrowing capacity and possible mergers with other real estate companies. LRE has also made a cautious entry into the property development field by starting to develop projects for its own portfolio. For the half year to 31 December 2001, the fund’s rental income rose 9.5% to €7.75m compared with the previous half year. The rental yield rose to 7.78%, compared to 7.51% in the previous half. The fund also saw its occupancy rate rise three percentage points to 97.04%. The fund has a net asset value of €55.61 per share. LRE also increased its debt ration to 36.88% and it is expected to use its borrowing capacity to back further expansion. A private company called Leasinvest controls LRE, owning 40.77% of its equity. Management of the Sicafi is carried out by a subsidiary 100% owned by Leasinvest, called Leasinvest Real Estate Management (LREM), while another wholly-owned Leasinvest subsidiary, Bopro Real Estate Services, manages LRE’s property portfolio. Jean-Louis Appelmans is managing director of LREM and CEO of Leasinvest. Leasinvest was created in 1983 as a private vehicle to provide alternative sources of finance for major public-sector investments. In 1989 it diversified into the corporate market, and it was acquired by listed services group Ackermans & van Haaren in 1994. Today, LSA is the eighth largest real estate company in Belgium, and it is active in four sectors: real estate asset management, through LREM; property development in Belgium and Luxembourg; real estate structured finance through Deutsche Leasinvest, a joint venture with Deutsche Bank and Deutsche Immobilienleasing; and providing equity for private property companies. Major Leasinvest property developments under way include a 150,000m2 to 200,000m2 offices, retail and residential project in Brussels, in co-operation with developer Robelco; and a phased 150,000m2 office development in Luxembourg. Leasinvest Real Estate CVA Montoyerstraat 63 B-1,000 Brussels Tel 32 2 237 08 20 Fax 32 2 230 47 68 www.leasinvest-realestate.com Financial highlights June 2000-June 2001 Leasinvest focuses on the Brussels/Ghent/Antwerp triangle €m 2001 2000 Value of real estate portfolio 200.94 177.28 Rental income 14.26 13.52 Net profit 11.05 13.01 Source: Leasinvest Real Estate