Inovalis Real Estate Investment Trust announces plans for Arcueil asset upon receipt of formal notice of non-renewal from long-term tenant
TORONTO, November 04, 2022–(BUSINESS WIRE)–Inovalis Real Estate Investment Trust (the “REIT”) (TSX: INO.UN) announced that it is proceeding with its plans to redevelop and revitalize the 110,000 square foot Arcueil property located in the urban privilege of the Vache Noire in Paris, now that he has been given formal notice by Orange SA, the sole tenant of the building, not to renew his lease.
In August, the board of directors had already considered the risk of non-renewal of the lease of Orange SA when it had reduced by 50% the annual distributions of the REIT to unitholders. This prudent step was taken in part due to the uncertainty surrounding this lease renewal as well as the anticipated reduction in revenue from other strategic vacancies in the REIT’s properties marketed for sale and redevelopment. Orange has now confirmed that it will vacate the property in mid-2023. This lease currently represents 28% of the REIT’s overall real estate portfolio and contributes 36% to the REIT’s annual rental income.
The REIT had previously adjusted the book value of the Arcueil property and deducted potential rental costs assuming there was a 75% chance of non-renewal. As a result of these modifications, the book value of the building had previously been reduced by 12%.
The delivery of the official notice of non-renewal now allows the REIT to advance its alternative plans for a mixed-use redevelopment of this asset which will provide the best operational, environmental, life safety and certified health and well-being systems. LEED. . Inovalis SA, the manager of the REIT, has a proven track record of transforming real estate projects using specialized financing structures to significantly improve working environments.
Stéphane Amine, Chairman of the FPI declared: “Management is drawing up plans for a mixed-use redevelopment of this 335,000 square foot asset. Its strategic location, 5 minutes from Paris’ southern ring road, and planned emphasis on LEED certification will elevate this asset into the prime asset category. so in high demand in central Paris. Management is exploring strategic financing structures similar to those used for the 2016 – 2018 Rueil redevelopment project which provided a 20% return to unitholders. We are very pleased with this welcome opportunity.”
Certain statements contained in this press release may constitute “forward-looking information” within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors that may cause results, performance or actual achievements are materially different from any future ones. results, performance or achievements expressed or implied by such forward-looking information. The use of any of the words “anticipate”, “continue”, “estimate”, “expect”, “intend”, “may”, “will”, “plan”, “should ‘, ‘believe’, ‘confident’, ‘plan’ and ‘intend’ and similar expressions are intended to identify forward-looking information, although not all forward-looking information contains these identifying words. Specifically, the forward-looking information contained in this press release includes, but is not limited to, statements made regarding the impact that the non-renewal of the sole lease on the Arcueil property could have on the overall financial condition of the REIT. These statements involve known and unknown risks, uncertainties and other factors that may cause the actual results or events, performance or achievements of the REIT to differ materially from those anticipated or implied by such forward-looking information. The REIT believes that the expectations reflected in the forward-looking information included in this press release are reasonable, but there can be no assurance that such expectations will prove to be correct. In particular, there can be no assurance that the REIT will achieve any of its corporate objectives. Given these uncertainties, readers are cautioned that the forward-looking information included in this press release is not a guarantee of future performance, and such forward-looking information should not be relied upon unduly. Further information on the risks and uncertainties affecting the REIT’s activities and the activities of its royalty partners can be found in the “Risk Factors” section of its Annual Information Form and in its most recent MD&A, copies of which are available. under the REIT’s profile on SEDAR at www.sedar.com. All forward-looking statements made in this press release are qualified by such cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that actual results or developments will occur or, even if substantially realize that they will have the intended consequences or effects on the REIT. The forward-looking information included in this press release is made as of the date of this press release, and the REIT undertakes no obligation to publicly update or revise such information to reflect new events or circumstances, except as required by applicable law. requires it.
About Inovalis REIT
Inovalis REIT is a real estate investment trust listed on the Toronto Stock Exchange in Canada. It was founded in 2013 by Inovalis and invests in office buildings in the main markets of France, Germany and Spain. It holds 14 assets representing €470 million of AuM. Inovalis REIT acquires (indirectly) real estate via CanCorpEurope, Alternative Investment Fund (AIF) authorized by the CSSF in Luxembourg, and managed by INOVALIS SA
About the Inovalis Group
Inovalis SA is a French alternative investment fund manager, approved by the Autorité des Marchés Financiers (AMF) under the AIFM laws. Inovalis SA and its subsidiaries (Advenis SA, Advenis REIM) invest and manage Real Estate Investment Companies like Inovalis REIT, open funds (SCPI) with a stable real estate vocation like Eurovalys (for Germany) and Elialys (Southern Europe), Thematic Private Funds raised with Inovalis partners to invest in defined real estate strategies and direct co-investments on specific assets
Inovalis Group (www.inovalis.com), founded in 1998 by Inovalis SA, is a recognized pan-European player in real estate investment with 7 billion euros in assets under management and offices in all the main financial and economic centers of the world in Paris, Luxembourg, Madrid, Frankfurt, Toronto and Dubai. The group is made up of 300 professionals, providing advisory, fund, asset and property management services in real estate as well as wealth management services.
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David Giraud, General Manager
Inovalis real estate investment fund
+33 1 5643 3313
Khalil Hankach, CFO
Inovalis real estate investment fund
+33 1 5643 3323