BuyerSide advised a Belgian investment fund on the non-market acquisition of a real-estate company that owns two investment properties, fully leased, in the north of Brussels.
The two buildings, one located in Laeken and the other in Koekelberg, each comprised about six residential units.
A transaction completed in just under a year for several reasons:
- the complexity of the dossier and its particular features, including several urban planning infringements which required a risk analysis and which impacted on the property valuation stage;
- the challenging negotiation that followed;
- the seller’s great indecision on whether or not to accept our offer;
- the submission by the seller of several counter-offers using different methods of valuing the shares of the company;
- the significant difficulty in obtaining the written agreement of the seller’s partner, who lives abroad and proved very difficult to reach at each stage in the acquisition process (Letter of Intent, Share Transfer Agreement, etc.).
At the end of the day…
The very attractive return obtained from this transaction is linked to the location of the properties in the north of Brussels and the general condition of the buildings, but also to the urban planning infringements revealed. Despite the difficulties mentioned, the intervention of BuyerSide made it possible to maintain a good understanding between the parties so as to bring the transaction to a successful conclusion