DW Partners, Whitewood ink value-add tower deal in Brussels

Private equity groups DW Partners and Whitewood have emerged as the buyers of the iconic Brouckère Tower in the city centre of Brussels from Crédit Agricole Corporate and Investment Bank (CACIB).

The deal, whose financial details were not disclosed, took the form of a share deal with CACIB selling the shares of the company owning the tower.

The Brouckère Tower offers 36,000 m2 of office space, a retail portion, and 525 parking spaces. CACIB bought the complex in January 2014 from Morgan Stanley Eurozone Office Funds, which on its turn bought it at end 2006 from developer Banimmo for a price believed to be around €85 mln, or a yield of 6.15%.

Banimmo had spent a total of €56 mln on the asset, including €27 mln of acquisition cost in 1998 and €29 mln of capex.

CACIB said the deal represents a 'successful exit' after working to reposition the asset over the past months.

'When taking over the company, we maintained Bress (Belgian Real Estate Services) as Property Manager under the close supervision of ROM (Roux Oeuvre Maitrise), a Paris based Project Manager. Based on ROM’s studies and contacts with local authorities, we rapidly concluded that a major refurbishment plan to fully repositioning the building might not be achievable before 2019. We subsequently decided to offer the vacant floors on a short-let basis only, which proved to be a successful strategy, stabilizing the tower and providing cash flow to pre-finance redevelopment costs. We are pleased that the acquirers, DW Partners and Whitewood are planning to pursue and expand on the strategy put in place by CACIB,' said Pascal Rouzée, managing director of CACIB.

DW Partners and Whitewood said they aim to re-establish Brouckère Tower 'as a prime location for corporate and institutional tenants'.

'The Brouckère Tower enhances the skyline of Brussels centre, and it has all the key elements to make for a successful investment. When you combine “location, location, location” with size and flexibility, you have the right ingredients. Through the combined vision of DW Partners, complemented with Whitewood’s in-house teams, we will strive to make this tower a beacon at the heart of our capital once again,' said Frédéric Van der Planken, managing director of Whitewood.

DW Partners and Whitewood were advised by Colliers Investment Management Belgium, BNP Paribas Real Estate, PwC and Linklaters.

CACIB employed Baker & McKenzie Brussels and Norton Rose Fulbright Paris as lead counsels.