Clearstream sells Luxembourg HQ for EUR350m

Clearstream sells Luxembourg HQ for EUR350m

Securities depository Clearstream has agreed a EUR350 million deal with German property company IVG Immobilien for the sale and leaseback of its headquarters in Luxembourg.

Deutsche Börse-subsidiary Clearstream says the sale price is "considerably higher than the book value of around EUR230 million", adding that it is taking advantage of positive market conditions for commercial real estate in Luxembourg.

Deutsche Börse will receive the book profit over the course of 2008 via dividend payments from Clearstream.

Four buildings in the Kirchberg area of Luxembourg City are to be sold with Clearstream leasing back the two that it currently uses. The lease agreement will run for 10 years from the conclusion date of the transaction, with two five year extension options for Clearstream.

The deal, which still requires approval by the supervisory board of Deutsche Börse, is expected to be completed by the end of the year.

The sale and leaseback arrangement brings Clearstream into line with the rest of Deutsche Börse, which rents all of its other office space.

Earlier this month Deutsche Börse said it is axing 300 jobs, primarily at its Frankfurt headquarters and its Luxembourg operations, under a restructuring and cost cutting programme designed to generate annual savings of EUR100 million from 2010 onwards.

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