Cofinimmo - Annual Financial Report 2014

Main achievements in 2014

Disposal of the Montoyer 14 building

April 2014: disposal of a 99-year long lease on the Montoyer 14

office building in Brussels for €13 million, above the investment

value determined by the real estate expert at 31.12.2013. The lessee

is an investment company acting on behalf of several institutional

investors.

Disposal of the shares of the company Galaxy Properties,

owner of the North Galaxy office building

May 2014: sale of all shares of Galaxy Properties SA/NV, owner of

the North Galaxy office building, located in the Northern district of

Brussels. This building was constructed in 2005 and bought by

Cofinimmo the same year for €390 million. It is let to the Buildings

Agency (Belgian Federal State) and occupied by the Belgian

Ministry of Finance until 2031. It offers almost 105,000m² divided

between two towers.

ATP, the largest Danish pension fund, acquired 90% of the shares

of Galaxy Properties SA/NV and AXA Belgium the remaining 10%. The

value agreed for the building between the parties was €475 million.

The building’s internal rate of return over its ownership period by

Cofinimmo amounted to 14.9% per year. The transaction resulted in

a realised book loss for Cofinimmo of €24 million. This is due mainly

to the difference between the price received by Cofinimmo for the

shares of Galaxy Properties SA/NV and their book value and, inci-

dentally, from the cancellation of the writeback of lease payments

sold and discounted booked since 01.01.2014.

The operation implied the payment of registration rights for

€27 million.

Letting of the Livingstone II building

May 2014: the European Commission and Cofinimmo sign a

usufruct agreement relating to the entire Livingstone II building

in Brussels. The contract is for a 15-year term, indexed annually. It

began in August 2014, with an initial annual rent set at €2,715,000.

See also our press release dated 13.05.2014, available on our website www.

Over 23% of the offices are let to the Belgian and

international public sector

86% of the offices are located in

the Brussels Region

Occupancy rate above the Brussels office market

Park Hill, Diegem (BE)

Park Lane, Diegem (BE)

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