Belgian real estate player Codic has completed a deal for a strategic plot of land in Luxembourg, in the Cloche d'Or district, acquired from real estate investor and developer Nextensa for €110 mln.
Known as the Titanium site, Codic will redevelop the 3.3 ha land plot which currently hosts a logistics asset, into a mixed-use development that includes offices, services and a hotel.
Codic, which operates in Belgium, Luxembourg, France, Spain and Hungary, initially reached an agreement with Nextensa in November 2021 to acquire 100% of the shares of the Luxembourg company GK5, owner of the Titanium site.
The effective transfer of the shares took place on 29 December.
The deal sees Nextensa realise a significant capital gain in the last quarter of 2022, and complete the year in a positive vein thanks to the rental income from the Titanium building on the site, which represented approximately €2.6 mln in 2022.
'The sale of this site is part of Nextensa's debt reduction strategy and provides a significant capital gain that will have a strong positive impact on the 2022 results,' said Michel Van Geyte, CEO of Nextensa.
The Titanium site is located on the west of the Cloche d'Or district in the city of Luxembourg. This new urban district is the result of a long-term urban planning process, which originated from the southward expansion strategy of the Luxembourg capital.
Today, Cloche d'Or is being developed as a sustainable, hyper-connected, mixed-use neighbourhood.
Said Thierry Behiels, CEO of Codic International: 'We are pleased to have reached a closing with Nextensa to acquire this site in the Cloche d'Or district, located between the Route d'Esch and Avenue Guillaume Kroll.
'We will develop a largescale project with strong architectural, environmental and social features. This acquisition also
marks the first success of our new department Codic Invest, which has managed to raise significant funds from investors, together with Bank Degroof Petercam.'
The reconversion of an industrial site is not a first for Codic in Luxembourg. The former Ford garages and the AEG Siemens site on the Kirchberg Plateau were successfully developed as part of The Square and K2 projects.
