22 August 2019, Road Town, Tortola, BVI
Eastern Property Holdings ("EPH" or the "Company") announces the successful signing of the share purchase agreement to acquire 100% of ownership interest in the currently under construction office and retail complexes QBC 1 & 2 as well as the parking garage QBC 7 located at Am Belvedere 10, 1100 Vienna, Austria. The properties are directly adjacent to the QBC 4 property, the BDO Headquarters, acquired by the Company in March 2019.
The closing of the transaction will occur after finalization of construction and is expected for Q1 2021 also subject to various other customary closing conditions.
The QBC 1&2 office properties with over 38,000 m2 of gross leasable space and an underground garage with approx. 580 freehold parking spaces are sold by UBM Development AG and its joint venture partner S IMMO AG for a total purchase price of approx. EUR 230m. The construction shall be finalized by the end of 2020 whereas, already today, approx. 60% of the office and commercial space have been either taken or are under negotiations, among others to well-known names like CBRE, Grant Thornton Austria and the well-known German restaurant chain Hans im Glueck.
Executing on the ongoing strategy to diversify the portfolio across European markets and the favorable development of the three already acquired Western European properties, the Company and its Board of Directors are convinced that it is the right time to add more real estate investments in stable Western European markets.
Austria remains one of the most stable and safe real estate markets in Europe and benefits from its growing strong economy, positive outlook on private consumption, low unemployment, with Vienna being the key market for investments. Following the first successful investment in the QBC area in Vienna - which is considered an optimal location close to the city centre, the mail railway station mobility hub and a diverse infrastructure offering that includes shops, hotels, restaurants and recreational facilities - EPH is convinced of the long-term sustainable performance of the currently constructed properties in the sought-after Quartier Belvedere and the attractiveness of the capital value per sqm.
As a result, EPH believes that the stable economy of Austria together with the sustainable properties create long term value for the Company's shareholders.
This transaction follows the strategy of the Company to focus on investments in premium quality, state-of-the-art income producing commercial property assets in Europe. Given its key investment parameters such as good location, impressive architectural design and high quality construction, the acquisition of QBC 1 & 2 & 7 will further diversify the Company's portfolio and strengthen sustainability of its long-term performance.
Eastern Property Holdings Ltd. is an investment company listed on SIX Swiss Exchange which holds interest in office, residential and retail properties. EPH is managed by Valartis International Ltd. a wholly-owned subsidiary of Valartis Group AG.
Additional information on Eastern Property Holdings is available by contacting Anna Bernhart Tel: +41 44 503 5400.
Attachment
- 190822 Press Release EPH_Acquisition QBC1&2&7 (https://ml-eu.globenewswire.com/Resource/Download/35431306-7618-475b-bc87-0045a3f51571)
