Tuesday, July 10, 2007

InBev Enters EUR 419 Million Sale Leaseback of 824 Pubs in Belgium and the Netherlands

Cofinimmo Web Site - July 7, 2007

InBev (Euronext/INB) announced today that it has entered into an agreement with Cofinimmo (Euronext/COFB) under which InBev Belgium will sell 90% of Immobrew S.A./N.V., a subsidiary which directly owns 824 pubs and some residential real estate locations in Belgium and indirectly 245 in the Netherlands, for 419 million euro for 90%, on a debt and cash free basis. At the same time InBev will enter into a lease agreement with Immobrew and some of its affiliates.

Consistent with InBev’s commitment to free up capital invested in non-core activities, InBev has decided to sell parts of its real estate assets in Belgium and the Netherlands, thereby enhancing the focus on its core beer business. The portfolio is sold to Cofinimmo, the largest listed real estate company in Belgium. The structure of the transaction ensures that InBev Belgium will retain a 10% interest in Immobrew. Immobrew will hold lease agreements (commercial types) of 27 years (plus renewal mechanism) with InBev for an initial rent of 26.8 million euro per annum (i.e. a 6.4% cap rate) indexed to CPI.

The commercial relationship between the pub tenants and InBev will not change. Cofinimmo has committed to further investments in the properties, and it is the aim of both parties to assure the continued success of the property portfolio. InBev’s Zone President for Western Europe, Stéfan Descheemaeker, said, “Freeing up resources will allow us to concentrate on winning with consumers, via our beer brands."

The transaction is expected to close by the end of 2007. Lazard acted as sole financial advisor to InBev in the transaction. Sphere: Related Content

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