French asset manager La Française and its South Korean partners have acquired their first office building in Luxembourg for an undisclosed sum.
La Française, acting on behalf of a collective real estate investment vehicle, and South Korean investors, advised by Korea Investment Management, have co-invested in DELO 1, a Luxembourg company which owns the seventeen-storey D Square office building.
The financing for the transaction was provided by the German Landesbank Helaba.
The 31,000sqm asset, which is in the final stages of completion, is located just south of the central business district of Luxembourg.
The asset is fully let, under a fifteen-year long term lease, to a single tenant.
David Rendall, CEO of La Française Real Estate Partners International, said this is the eighth European real estate investment sourced on behalf of South Korean investors and the first in Luxembourg.
Shawna Yang, La Française’s director of real estate investor relations for Asia, said: “In the case of D Square, the interests of our South Korean partners are aligned with the growth prospects, in terms of expected rents and capital values, of the Luxembourg real estate market.”
La Française has now completed over €2bn of investments across five UK, France, Germany, Belgium and Luxembourg.