Ariel-Bêta portfolio

I
n December 1985, a few months after its inception, Larmag acquired a large portfolio on the Dutch property market; the Ariel Bêta portfolio. This portfolio, purchased for Euro 82.7 million, included office buildings in various locations in Amsterdam, Rotterdam, Frankfurt and Paris. Larmag took over management of the portfolio and in less than a year, in October 1986, successfully completed the reorganisation and sale of the portfolio.

Keizersgracht 555, Amsterdam
The Netherlands


E
ncouraged by this success, Larmag extended its interests in The Netherlands. In October 1986, Larmag acquired a controlling interest in Pronam NV, a company listed on the Amsterdam Stock Exchange. At the beginning of 1987, Larmag placed all its recently acquired property, with a value of Euro 78.2 million, under the umbrella of Pronam. This was the first step in Larmag's plan to make Pronam the basis for future property investments and to attract additional finance for ongoing investment opportunities.

Veerkade 4-7, Rotterdam
The Netherlands

D
uring 1987, approximately 740,000 new shares in Pronam were issued at a price of Euro 56.4 per share to part finance acquisitions totalling Euro 159.1 million. Among these acquisitions were two of the three Rotterdam Europoint Towers. The total assets of Pronam rose from Euro 1.4 million at the beginning of 1987, to Euro 272.7 million at the end of that same year. At that point, the total property portfolio amounted to 350,000 m2, with a yearly rental income of Euro 24.5 million.

222 North Lasalle street, Chicago
The United States


B
y mid 1988, Pronam shares had risen on the Amsterdam Stock Exchange from a low of Euro 40.90 in November 1987 (one month after Black Monday) to Euro 70.90. Mr. Magnusson commenced negotiations to sell Pronam to a Swedish investment company.

I
n the summer of 1988, the sale of Pronam was concluded for a total value of Euro 283.6 million, giving the company a net value of more than Euro 90 per share. This sale generated a 60% return on shareholders' equity over a period of only one year.