Business
Acquisition
Acquisition.
About this update from Livermore Investments Group Limited
[{"type":"text","content":"\n Livermore Investments Group Limited\n03 July 2007\n\n\n 3 July 2007\n\n\n Livermore Investments Group Limited ('Livermore')\n\n First Real Estate Acquisition of Wylerpark in Bern, Switzerland for CHF110\n million\n\n\nLivermore is pleased to announce the completion of its first real estate\ninvestment. Livermore has purchased a 34,000 square metre commercial freehold\nproperty, Wylerpark, in Bern, Switzerland, from the Swiss national railway\ncompany, SBB. The acquisition is being made on a sale and lease back basis for\nCHF93.5 million (£38.3 million) and is the first of this kind to be completed by\nSBB.\n\nThe commercial premises, which include 4,800 square metres of office space\ncurrently occupied by SBB (Wyler1) and 13, 200 square metres of newly built\noffice space (Wyler 2) will be leased by SBB for a minimum of twelve years under\nthe terms of the deal. The total annual rent of these premises is CHF4.3 million\n(£1.77 million) for the first twelve months, which will be fully indexed to the\nSwiss consumer price index on an annual basis.\n\nLivermore has also agreed to build 39 luxury apartments overlooking the Alps on\nthe acquired land, which are expected to be completed in 2008 at a total cost of\nCHF16 million. The project further includes rights over 8,000 square metres for\nfuture commercial development, which Livermore intends to pursue.\n\nFollowing the development of the residential assets, Livermore expects to\ngenerate a return on equity on this investment in excess of 8 per cent and\nanticipates generating further gains from exercising the additional development\nrights.\n\nLivermore will establish a wholly owned special purpose vehicle (SPV)\nincorporated in Switzerland to purchase this asset, 85 per cent of which will be\nfinanced though non-recourse debt to the SPV, with the balance through equity.\n\nWithin the Company's overall investment strategy, Livermore is currently dealing\nwith a massive deal flow and intends to establish a real estate portfolio in a\nrange of US$1 billion. Such assets would be predominantly located in\nSwitzerland, generating secure income streams from tenants with high credit\nratings, where possible.\n\nNoam Lanir, Chief Executive Officer of Livermore, commented, 'the purchase of\nWylerpark will grant Livermore ownership in one of the highest quality\nproperties in Switzer...