MERLIN Properties Annual Report 2017 / English

ı 34 ı Acquisition of Marqués de Pombal 3 On 25 September, MERLIN Properties completed the acquisition of Marqués de Pombal 3. The asset is located in the best spot within Lisbon Prime CBD area, in Praça Marques de Pombal, the junction between Avenida da Liberdade and Fontes Pereira de Melo. The 10-storey building comprises 12,460 sqm of lettable area, 9,435 sqm for office and 3,025 sqm of retail. The building, currently running at 63% occupancy, includes tenants such as McKinsey, NOVO BANCO, Banco Best or MDS Portugal. The asset offers significant growth potential through an active asset management to be focused on enhancing the retail area into upper scale, and continue bringing to the office component the best specifications in the market as contracts expire. The acquisition price amounts to € 60.5 million representing a gross yield on current occupancy of 4.0% and an ERV yield of 6.5%. Marqués de Pombal, 3 Acquisition price of the asset (1) (€ thousand) 60,491 Asset debt outstanding as of the date of purchase (€ thousand) - Equity disbursement (€ thousand) 60,491 % Debt to acquisition Price of the asset - ERV (€ thousand) 3,900 ERV Yield (2) 6.5% Total G.L.A. (sqm) 12,460 (1) Excluding transaction costs (2) Calculated as ERV divided by acquisition price plus estimated Capex