Rubicon Europe Trust Group is pleased to announce that it has agreed to acquire a Class A office property 100 percent leased by Nike, located in Hilversum, the Netherlands (Nike HQ) for €90.4 million (A$155.8 million). This follows REU's recent acquisition of the Hermes Plaza development in Brussels, Belgium announced on 10 July 2006.
Nike HQ is a 31,539 square metre office property located in Hilversum, 30 kilometres southeast of Amsterdam. The property is 100 percent leased by the European operations of Nike (NYSE: NKE) as its Europe Middle East and Africa headquarters. The initial yield on acquisition is 6.3 percent and the weighted average remaining lease term is 6.5 years.
On completion of the Nike HQ acquisition and the Phase I Hermes Plaza acquisitions, REU will have five Class A income producing properties covering 178,091 square metres in Germany, Belgium and the Netherlands and a further three development opportunities with in place approvals for 34,207 square metres of Class A office space. Further details on the REU Portfolio are attached.
Distributions are forecast to increase to 9.50 cents per security in 2007 – an increase of 5.6 percent on the expected distribution of 9.0 cents per security in 2006.
The acquisition will initially be 100 percent debt funded, using senior debt at the asset level and a corporate debt facility. Consistent with existing policies, REU has fixed the interest rate exposure on senior debt at 4.86 percent for a period of five years.
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