DTZ Investors has acquired the newly developed City Station mixed-use building in Luxembourg from Belgian developer Pylos for €31 mln on behalf of an unnamed client.
DTZ Investors has acquired the newly developed City Station mixed-use building in Luxembourg from Belgian developer Pylos for €31 mln on behalf of an unnamed client.
Delivered earler this year, City Station is located at Avenue de la Gare 8-10 in Luxembourg. The complex offers 2,550 m2 of office accommodation and 810 m2 of retail space.
The office space is let to Centralis Group, Russian Commercial Bank and Alpha Private Equity Fund 6 Management. The ground floor is let to retailer New Yorker.
Cushman & Wakefield advised Pylos on the deal.
‘This transaction confirms, once again, that in the current challenging times, investors are looking at prime assets that are well located and, most importantly, generate a secured cash flow during the investment period. These values are reflected in all our developments and remain our strategy for future developments,' commented Jurgen Trappeniers, CEO of Pylos BeLux.
‘City Station is one of those rare assets which brings together all of the qualities investors are looking for, namely: an ideal location right in the heart of the station district, a modern building and a letting situation with a diverse risk profile. We are seeing yields being squeezed in Luxembourg and this is even more marked in quality buildings such as City Station,' added Michael Despiegelaere of C&W.
Luxembourg's real estate investment market is expected to come close to €1 bn of transactions this year, representing the largest investment volume since the peak year of 2007. To date, over €600 mln has been invested in commercial real estate in the country, putting pressure on prime yields which currently stand at 5.20% in CBD locations.