Munich-headquartered Catella Real Estate has acquired W4 Office building in Leudelange, Luxembourg, from Parfinimmo.
The asset was acquired on behalf of a German pension fund single mandate in cooperation with Maastricht-based Catella Investment Management Benelux (CIMB).
The fund in question, the AVW European Real Estate Fund, is a German institutional Spezialfonds structure launched at the end of 2020.
Fabian Pick, the fund's portfolio manager said: 'The W4 office building is a perfect match for the profile of the AVW fund investment mandate.
'It is a recently constructed sustainable office asset that also incorporates commercial space on the ground floor, providing a diverse tenant mix.
'The vendor in this deal, the ParFi Group, is also the main tenant, which means the building has been well maintained and managed by them as the current owner.'
The W4 building is located at 17 rue Léon Laval L-3372 Leudelange, Luxembourg on the Am Bann Business Park and has a total gross lettable area (GLA) of 4,955 m2, including 4,519 m2 of office space, 235 m2 of retail and around 201 m2 of storage space, spread over three upper and two basement floors.
It also has 42 indoor and 37 outdoor parking spaces. The property was built in 2020 and will obtain BREAAM ‘Very Good’ sustainability certification. The tenants of the building are Parfinindus, Willemen International and SRB Lux.
Added Pick: 'The property is situated in a growing alternative office sub-market to the Luxembourg CBD and offers very stable cash flows to underpin long-term attractive investment returns.
'It also provides further geographical diversification to the fund’s portfolio in Luxembourg, as one of the more attractive office markets in Europe, following our previous investments under its mandate in Augsburg, Essen, Cologne, Barcelona and Brussels.
'The fund has invested €160 mln since inception and is targeting the continuing enhancement of its real estate portfolio throughout Europe.'
Ralph Willems, senior acquisitionmanager at CIMB, said: 'The acquisition of W4 is the third addition to Catella’s Luxembourg real estate investment portfolio.
'The strong tenant covenants in a flourishing office location support our high confidence in this investment and we are actively seeking similar opportunities in the Luxembourg market.'
Catella was advised by Stibbe, Drees & Sommer and Deloitte in the due diligence process.
