Luxembourg

RTL cancels sale of Luxembourg headquarters

The broadcaster has cancelled the sale of its building complex 'RTL City', located on Boulevard Pierre Frieden in Kirchberg.

30.08.2017

European broadcaster RTL Group has cancelled the sale of its Luxembourg headquarters in Kirchberg.

In its half-year results, RTL announced it had decided not to pursue a sale and leaseback transaction for the building complex on Boulevard Pierre Frieden, dubbed "RTL City".

The transaction was originally expected to complete during 2017 – but it has been postponed until "a later point in time".

RTL had entered an agreement in October 2016 to sell the buildings to a third party, but the deal was pulled in May this year.

The new headquarters, inaugurated in April, is valued at €83m and includes three office towers.

In its results, RTL reported a drop in profit by 11% for the second quarter to €209m compared to €235m over the same period in 2016.

However, revenues grew by 8.8% in the second quarter to €1.57bn, largely driven by growing digital businesses. Shares in RTL rose 1.53% to €63.17 at 11am on Wednesday.

(Hannah Brenton, hannah.brenton@wort.lu, +352 49 93 728)