First Sponsor units acquire Rotterdam property for 62 million euros
Navene Elangovan
FIRST Sponsor Group and its units, together with its partners comprising three high net worth individuals, have acquired an office building in Rotterdam at an agreed commercial value of 62 million euros (S$90.6 million).
On Monday (Sep 18), the property developer said that the value excludes debt, as well as the cost for certain capex works and inspection works for the property.
The leasehold property is Allianz Tower, an office building in Rotterdam, Netherlands, with a net lettable floor area of 19,607 square metres.
It is fully leased to insurance agency Allianz Nederland Groep and the lease expires by end-2035.
The lease is renewable for consecutive periods of five years each, though the tenant reserves a one-off right to terminate its agreement by end-2030 with a one-year notice period, subject to a payment.
Based on estimates of the target company’s cash and debt, First Sponsor and its partners paid a preliminary share purchase price of 15.6 million euros to acquire Rotali BV – which holds the title to Allianz Tower – from a French institutional investor.
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First Sponsor’s portion for the share purchase deal was about 5.2 million euros, translating to a 33 per cent stake in Rotali BV.
The group’s indirect wholly owned subsidiary in Singapore paid an additional 46 million euros, or the shareholder loan portion of Rotali BV’s debt.
This brings the group’s total funding of the acquisition to 51.2 million euros, which was funded by existing cash resources and committed credit facilities.
The acquisition is not expected to have any material impact on the consolidated earnings per share and the consolidated net tangible assets per share of the group for the current financial year, said First Sponsor.
The group said that the acquisition offers “a good opportunity” to further expand its recurrent income base of its property holding and property financing business segments.
“The acquisition also aligns well with the group’s long-term investment strategy for capital appreciation,” it added.
The counter closed flat on Friday at S$1.23 without any trades.
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