Catella Real Estate and Bank J Safra Sarasin’s sustainable properties fund has added an office development in Luxembourg to its portfolio.

Munich-based Catella said it has invested €52m on behalf of the Sarasin Sustainable Properties - European Cities Fund (SSP) to buy the office development from Lafayette.

The building at 60 Rue des Bruyeresis is located in the emerging Howald office district and offers 8,000sqm of lettable space. Upon completion in the first quarter of the year, it will be occupied by the Saint Pauls Luxembourg media group.

Axel Bertram, co-portfolio manager of the fund at Catella Real Estate, said: “This is a great addition to SSP’s Benelux portfolio at the heart of Europe, where the Luxembourg office market has become one of the top Brexit destinations as a number of UK and US financial institutions relocate there to maintain their presence within the EU.

”With its modern design, blue-chip tenant and green credentials it ticks all the boxes in terms of the fund’s acquisition criteria.”

Ralph Willems, senior acquisition manager at Catella Investment Management Benelux, said: “This is our second acquisition in Luxembourg in a year and demonstrates our commitment to all the countries that make up the Benelux.

”A good local team with sound market knowledge and understanding of the regulations and culture is essential to making a difference and enables us to identify opportunities more quickly through our network. We are ready to invest more in real estate in Luxembourg.”

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