Eurocommercial Properties NV is in exclusive negotiations and due diligence to acquire the Woluwe shopping center in Brussels for a gross investment of about €468 million, reflecting an initial yield of just under 4%.
The company said in a release that it plans to purchase 23,000 square meters of lettable area, including the public mall, parking levels and surrounding land. Zara, H&M, Superdry, Calvin Klein and C&A are among the tenants at the shopping center.
Eurocommercial Properties expects to sign the purchase agreement by November-end, with completion and payment expected in the 2018 first quarter.
The company will finance the acquisition via its existing asset rotation program and an 18-month loan facility. ABN AMRO and ING will provide the loan facility, half of which will convert to a seven-year mortgage loan at an all-up fixed interest rate expected to be under 2%.
The company expects to receive approval for a proposed 10,000-square-meter extension at the facility, improving the overall yield when leased. A refurbishment program will start promptly following the acquisition, with the extension to follow once the company receives the final planning and building approvals.
Eurocommercial Properties noted that it expects to be able to maintain its current dividend level, adding that it aims to sell certain of its properties in Italy, France and Sweden.
Degroof Petercam is the company's adviser on the Woluwe deal, while CBRE and JLL are acting for the vendors.