Dream Global, a Canadian REIT focused exclusively on Europe, has entered the Belgian market by acquiring an office property next to Brussels Airport for €95.9 mln. 

airport plaza office complex in brussels

Airport Plaza Office Complex in Brussels

The investment volume for the acquisition of the Airport Plaza complex reflected a 'going in' capitalisation rate - return on expected income - of 7.1%, the Toronto-listed REIT said. 

Airport Plaza is a multi-tenant office complex built in 2011. Located next to the Belgian capital's Zaventem Airport, the 36,000 m2 BREEAM-certified complex consists of five multi-story office buildings linked by a shared lobby, providing internal access to restaurants and amenities. The property is 97% occupied, with a weighted average lease term of 8.1 years.

Dream Global said that the purchase was funded with the proceeds from an equity offering in March and a revolving credit facility. The REIT is also in negotiations to place long-term mortgage financing for a term of up to seven years and an interest rate of 1.8% based on the current market rates.  

Belgium is now the third country alongside Germany and Austria in Dream Global's €2 bn portfolio of office, industrial and mixed-use properties. 

The vast majority of the 170 assets are in Germany. Dream Global entered Austria in 2015 by partnering with an Asian sovereign wealth fund to acquire the 50,000 m2 Rivergate office building in Vienna for €189 mln.

Commenting on the Brussels acquisition,  Alex Sannikov, senior vice president of commercial properties at Dream Global, said that Brussels shared favourable characteristics with both Germany and Vienna in terms of strong corporate demand, rising rents and compressing yields. 'We have been looking for opportunities to enter this market and believe that Airport Plaza is an excellent first step, with a strong yield and great tenant roster,' he said.