Inovalis Real Estate Investment Trust Announces the Sale of the Rueil Property Located in Rueil Malmaison Paris on a Forward Plan Basis to a Joint-Venture Partnership Between SEDCO and Inovalis SA

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[{"type":"text","content":"\n\n\n\nInovalis Real Estate Investment Trust Announces the Sale of the Rueil Property Located in Rueil Malmaison Paris on a Forward Plan Basis to a Joint-Venture Partnership Between SEDCO and Inovalis SA\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nTORONTO, May 7, 2020\n\n\n\n/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES/ \n TORONTO, May 7, 2020 /CNW/ - Inovalis Real Estate Investment Trust (the \"REIT\") (TSX: INO.UN) announced today the Rueil property (\"Rueil\" or \"Property\"), located in the Rueil Malmaison business district in Paris, has been disposed of on a forward sale basis to a joint-venture between SEDCO and Inovalis SA (\"Transaction\") and the repayment of mezzanine financing provided by the REIT for acquisition and redevelopment of the Property in 2016.\n\n \n \n \n \n \n \n\n \nThe acquisition and redevelopment of the Property was performed in a partnership between Inovalis SA (80%) and a tier-one French real estate developer (20%). The new building complex of approximately 260,000 sq.ft. includes 334 parking spaces and will largely comprise of office space (91% of GLA) with the remaining area occupied by restaurant, retail and storage areas. The property is set for delivery in May 2020 to Danone, a French multi-national food products firm, under a 12-year lease for 100% of GLA.\nThe mezzanine loan carried an 8.5% interest rate and represented 40% of the equity required for the acquisition and redevelopment of Rueil. Additionally, the REIT is entitled to receive 20% of the profit from the Transaction. The REIT's overall IRR on the committed €17.2 million ($24.9 million) should be in the mid to high teens for a period of three and a half years. \nKhalil HANKACH, CFO and CIO of Inovalis REIT commented: \"This  further evidences Inovalis REIT's ability to execute on unique value-add opportunities that provide both attractive cash flow profiles and upside profit participation. This transaction continues to illustrate management's commitment to simplifying the balance sheet a...

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