(14/05/2004) Cofinimmo acquires the Egmont I building and the land intended forthe construction of a new buildi

Brussels, 14.05.2004 - Cofinimmo, the listed real estate investment company specialised in office properties, today announces the acquisition of the Egmont I building and the land on which will be built the new Egmont II building, adjacent to the Palais d'Egmont. The seller is the Belgian State. The acquisition price, transfer tax included, amounts to EUR 173.7 million. The initial yield of the investment is estimated at 6.15%. The Egmont I building, located rue des Petits Carmes in 1000 Brussels, comprises about 38,000 m² above ground and 34,000 m² of basement and parking. The Egmont II building, which still has to be built and is located across the street, will offer 16,000 m² of area above ground and 6,000 m² basement and parking. Egmont I will be let to the Régie des Bâtiments of the Belgian State for a period of 18 years, starting on 01.06.2004. Egmont II will also be let to the Régie des Bâtiments for a period starting on the first day of the month after provisional acceptance (estimated at 01.06.2006), and ending the same day as Egmont I. The occupant will be the Public Federal Service of Foreign Affairs, Foreign Trade and Development Aid. About half of the acquisition amount will be financed by a capital increase in cash, by public subscription - with preferential rights for the existing shareholders - of new preference shares convertible into ordinary shares. The Extraordinary General Meeting of 30.04.2004 of Cofinimmo has introduced in the Articles of Association the possibility to issue preference shares, with the following main characteristics: - Priority right to an annual fixed gross dividend of EUR 6,37, capped at this amount ; - Priority right in case of liquidation to a distribution equal to the issue price, capped at this amount; - Option for the holder to convert his preference shares in ordinary shares from the 5 th anniversary of their issue date, at a rate of one new ordinary share for one preference share ; - Option for a third party designated by Cofinimmo (for example one of its subsidiaries) to repurchase in cash and at their issue price, from the 15 th anniversary of their issuing, preference shares that have not yet been converted ; - The preference shares are registered and carry a voting right identical to ordinary shares. A first series, issued for the merger through absorption of Belgian Office Properties SA (1*) with Cofinimmo, is listed on Euronext Brussels since May 3 d (COFP). The issue, which is subject to the approval of the prospectus, will take place during the months of May and June 2004. It will be lead managed by Bank Degroof. As of now, Cofinimmo benefits from a firm underwriting by Bank Degroof, the conditions of which will appear in the prospectus. The bank has committed to subscribe the shares that would not be subscribed by the public. This acquisition leads, when the payment of the price takes place during the month of May 2004, to a temporary excess of the debt ratio foreseen in the legislation applicable to Sicafis (ratio of 50.9 % instead of 50.0 %). The capital increase should allow the company to bring back its debt ratio below 50 % in the short term. The construction of the Egmont II building as well as some liaison works inside the Palais d'Egmont will be realised and financed by CIT Blaton SA, until their acceptance by the Régie, foreseen in June 2006. At this date, Cofinimmo will pay their cost, which is estimated at EUR 41.1 million overall, VAT and fees included. By this project, Cofinimmo further executes its strategy and acquires, at favourable financial conditions, office properties let on the longest possible terms. Following the integration of the North Galaxy project scheduled for early 2005, also let to the Régie des Bâtiments for 18 years, Cofinimmo will possess two key sites in Brussels occupied by the Public Federal Services of Foreign Affairs, Foreign Trade and Development Aid on the one hand, and Finances, on the other hand. It is anticipated that the "Egmont" acquisition alone will have an accretive effect on the net current result of the ordinary share of almost EUR 0.20 per share on average during the following 5 years. Moreover, in a market made more difficult by the weak demand for office space from the private sector, the inclusion of a long-term index-linked rental will have a favourable stabilising impact on Cofinimmo's future income streams. 1* See press release of 25.02.2004. For more information: Laure le Hardy de Beaulieu - Investor Relations Officer Tel. +32 2 373 00 09 - llehardy@cofinimmo.be Séverine Van der Schueren - Corporate Communications Officer Tel. 32 2 373 00 04 - svanderschueren@cofinimmo.be © CompanynewsGroup