Cofinimmo sells Brussels office building for 475 mln euros

BRUSSELS Tue May 13, 2014 3:56am EDT

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BRUSSELS May 13 (Reuters) - Belgian real estate group Cofinimmo said on Tuesday that it had sold an office building in Brussels for 475 million euros ($653.4 million) to reduce its exposure to the office market in the Belgian capital.

Ninety percent of the North Galaxy Building, which currently houses the Belgian finance ministry, will be bought by Danish pension fund ATP while AXA Belgium will take a 10 percent stake.

As part of the transaction, Cofinimmo also restructured certain interest rate hedges, which cost the group 57 million euros, but will result in lower interest payments over the coming four years.

The group said that after the transaction it would have 200 million euros available to invest in other sectors to bring the share of offices in its portfolio to about 40 percent.

With the sale of the North Galaxy building that percentage fell to 41.7 percent from 45.6 percent before.

Cofinimmo also said the deal sustained its forecast for a 2014 dividend, to be paid in 2015, of 5.50 euros gross per share. ($1 = 0.7270 Euros) (Reporting by Robert-Jan Bartunek; editing by Philip Blenkinsop)

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