Valesco Group has refinanced the Finance Tower office skyscraper in Brussels for €600m on behalf of JR Global REIT, Korea’s largest independent real estate investment trust (REIT).
The European real estate manager said the refinancing of the 142-metre tall building in the Belgian capital was secured with the existing lender consortium and is Europe’s largest office refinancing since the pandemic.
The Finance Tower is home to the Belgian government’s Ministries of Finance and Social Security, along with offices for several government ministers.
In 2020, Valesco, in partnership with Korea’s Meritz Securities, acquired the €1.2bn skyscraper in Brussels with support from a €720m debt package provided by a consortium of lenders, including Allianz, Legal & General Investment Management, SMBC and Bayern LB.
Subsequently, JR Asset Management (AMC) launched JR Global REIT focused on the ownership of Belgium’s second-tallest skyscraper, in an IPO underwritten by Meritz Securities and KB Securities.
Shiraz Jiwa, founder and CEO of The Valesco Group, said: “Finance Tower’s robust real estate and sustainability fundamentals, including its long-term government tenant profile, strong income growth prospects, and leading ESG credentials, has seen the asset perform with both resilience and exceptional strength, despite the uncertain geopolitical and macro-economic backdrop of recent years.
“These fundamentals coupled with a highly aligned and committed set of stakeholders, all underpinned by a close-knit partnership between Valesco and JR AMC, has delivered a watershed moment for the European office market.”
Henry Jang, CEO of JR AMC, said: “This landmark refinancing, achieved in close partnership with Valesco, not only highlights the resilience and strategic importance of Finance Tower but also reinforces our long-term commitment to sustainability. Aligned with the EU’s sustainable finance and decarbonisation agenda, we aim to further enhance the building’s strong environmental performance as part of our ongoing business strategy.
“By building on its superior BREEAM rating and outstanding carbon and energy efficiency metrics, we strive to set new benchmarks for sustainable investment practices, ensuring Finance Tower remains a leader in ESG excellence within the European real estate market.”
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