The iconic Century Center complex, located on the Keyserlei in Antwerp, first served as a hotel and was transformed into a shopping mall and office complex in 1979.
The part of the Century Center owned by Qrf is valued at MEUR 26.8 (Fair value of the leasehold rights estimated at MEUR 26.0 million and MEUR 0.8 million for the participation (51%) in Century Center Freehold BVBA), representing 9.2% of Qrf's total real estate portfolio. The Qrf part comprises a shopping mall with about thirty units and a parking garage.
The other parts of the complex are owned by investment company Baltisse. After years of standstill to develop the project, Qrf signed a binding agreement with Baltisse for the joint redevelopment of the Century Center complex.
Thanks to this collaboration, the entire complex will be redeveloped as one whole into a project that combines retail with parking garages and offices, which meet today's needs.
The collaboration will take the form of a contribution by Baltisse and Qrf of their respective property components in several joint ventures. Qrf will as a consequence of this agreement receive, after contribution, 30% shareholdings in the joint venture companies (valued at MEUR 19.2) as well as a cash payment of MEUR 7.6. These transactions are valued at current fair value. The parties aim for a contribution in the second half of 2020, depending on obtaining the necessary urban development permits. During the period up to the contribution, Qrf retains the rental income on its property components.
William Vanmoerkerke, CEO Qrf City Retail:
“This transaction means value creation for the shareholder in both the short and the long term. First of all, we are reducing our position in the Century Center, thus reducing the weight of the Century Center in the total portfolio. Secondly, we are entering a strong development story, at one of the best locations in Antwerp, together with a party that has proven expertise and know-how in realising such projects."