Hamburgische Immobilien Handlung (HIH) said on Tuesday that it is bringing its first Belgian closed-end real estate fund to the market. The HIH Global Invest 2003 - Belgium investment vehicle, with a life term of 10 years, has already made its first acquisition with the purchase of an office property in the city centre of Brussels for EUR 31.5 mln, reflecting a yield of 5.96%.
Hamburgische Immobilien Handlung (HIH) said on Tuesday that it is bringing its first Belgian closed-end real estate fund to the market. The HIH Global Invest 2003 - Belgium investment vehicle, with a life term of 10 years, has already made its first acquisition with the purchase of an office property in the city centre of Brussels for EUR 31.5 mln, reflecting a yield of 5.96%.
Located in the Pentagon office submarket, the Rue Royale property was renovated in 2003 and provides around 9,000 m2 of office space across nine storeys. It is 100% leased to the Belgian state with a rental term until March 2021.
'A public tenant and a long-term lease provide income security and meet investors' need,' said Torsten Dean, managing director of HIH. The firm plans to retain the asset in its portfolio for around 10 years. 'Given the current low interest rates, we have chosen an attractive long-term financing with a fixed interest rate,' the German company said.
According to Andreas Schultz, CEO of HIH Global Invest, Brussels is one of the most stable and attractive European office markets, with public tenants and international organisations driving demand for office space. 'Because of the consistently high demand for space, we expect rents to rise in the long term,' added Schultz.
