Munich-based investment manager Catella Real Estate AG (CREAG) has acquired an office development in Luxembourg for the Sarasin Sustainable Properties - European Cities Fund (SSP) for around €52 mln from Lafayette.
The building is located in the emerging Howald office district and offers 8,000 m2 of lettable space. Upon completion in Q1 2021 it will be occupied by the Saint Pauls Luxembourg media group, now part of Mediahuis, owner of the Luxembourger Wort, Luxembourg Times and Radio Latina, on a long-term lease.
Axel Bertram, co-portfolio manager of the fund at CREAG, 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.'
The property, at 60 Rue des Bruyeres, lies on the outskirts of Luxembourg-City only a few hundred metres away from the Cloche d'Ór area. It will be certified Breeam 'very good' due to its energy-efficient triple-glazed windows, LED lighting, integrated sun blinds, rainwater harvesting system and 10 charging stations for electric cars.
Ralph Willems, senior acquisition manager Catella Investment Management Benelux (CIMB): '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.'
Maastricht-based Catella Investment Management Benelux will be responsible for the asset management of the property on behalf of SSP.
