Commerz Real Spezialfonds has sold City Garden in Brussels in what is believed to be the largest office transaction in the Belgian capital over the last two years.
Commerz Real Spezialfonds has sold City Garden in Brussels in what is believed to be the largest office transaction in the Belgian capital over the last two years.
Commerz Real was advised by Linklaters, PwC and CBRE.
The identity of the buyer and the financial details were not disclosed but PropertyEU has established from independent sources that the price was around €40 mln, reflecting an initial yield of just over 5%.
The 9,000 m2 property is situated on Rue Joseph II 59 in Brussels' European District. The building has been occupied by the European Commission on a long lease since it was delivered in 2009.
The sale is a sign, sources say, that investor confidence in Brussels' core office sector is returning after several fairly torrid years in the aftermath of the financial crisis. Concerns about the future of the euro led to doubts among many investors of the wisdom of investing in the Belgian capital, which is the de facto capital of the European Union and the country's largest office market.
Investors have in recent years been more active buyers of Belgian retail property due to concerns about the Brussels office occupational market.
In 2012, the largest office deal actually took place in Ghent rather than Brussels. Abu Dhabi Investment Authority paid €110 mln, reflecting a high yield, to acquire the Zuiderpoort complex in the city of Ghent.
The March edition of PropertyEU Magazine includes a special focus on the Belgian market.
