Corio and White Estate Investments execute the sale of the Dutch office and industrial portfolio

Corio and the consortium led by White Estate Investments (WEI) have successfully executed the deal concerning Corio’s Dutch office and industrial portfolio. Corio received payment of € 622 m on 30 September 2008. The proceeds will be used to repay short-term debt and finance Corio’s pipeline. The related assets were transferred to WEI on the same date. As from this transfer, Corio has over 92% of its portfolio invested in retail property. The transfer and payment of four assets have been postponed to fixed dates later in 2008.

On 25 April 2008 Corio and the consortium signed the purchase agreement; the total purchase price amounted to € 650 m. The transfer and payment of four assets have been postponed to fixed dates
later in 2008. A sufficient amount is deposited by the consortium as security for the final payment.

The four assets represent a value of € 25.8 m.The other assets were transferred on 30 September 2008 on payment of € 622.4 m. Corio will contribute € 2 m to additional maintenance work, as earlier
agreed in the sale and purchase agreement, this is deducted from the purchase price. The income from the properties accrues to Corio until the transfer dates. The Dutch office and industrial portfolio
consists of 35 office buildings, 11 industrial properties and 2 parking garages. The gross leasable area totals 430,000 m².

Mr. Jan Visser, until 30 September 2008 CEO of Corio Nederland Kantoren B.V., and his team (11 persons), who have been responsible for asset management of the portfolio, will be employed by WEI as from 1 October 2008.

Part of the cash proceeds will be used to repay the drawings under the bridge facility of € 470 m. The remainder will be used to repay short term debt and to finance Corio’s pipeline. As from this transfer,
Corio has over 92% of its portfolio invested in retail property and can thus offer investors an attractive risk/return profile.

Based on the offers received earlier this year, Corio decided to negotiate a separate sale for the portfolio in the Netherlands as a whole and take a different approach for the French portfolios. More shareholder value is expected to be created through the sale of individual assets or group(s) of assets in France at a later stage.

Corio appointed Jones Lang LaSalle as advisers to guide the sale of the portfolio. De Brauw Blackstone Westbroek acted as legal adviser to Corio.

source : Corio