Hannover Leasing, part of the Corestate Group, has confirmed the sale of the Melius office building in Luxembourg to a fund managed by Italian insurer Generali, as tipped by PropertyEU last week.
The building, which houses the headquarters of global trust service provider Alter Domus, changed hands for over €105 mln, according to market sources.
Delivered in late 2018, the asset is located in the heart of the new Cloche d’Or district and is entirely leased to Alter Domus which signed a 12-year lease on the asset, with 10 years remaining. Hannover Leasing bought the property on completion directly from its developers, Extensa and its Luxembourg-based partner Promobe, for a price of €85 mln, or a 4.25% yield.
Hannover Leasing is selling the asset on behalf of its clients, the Finnish mutual pension insurance company Ilmarinen and an unnamed French institutional investor.
Domus boasts a BREEAM Very Good rating and offers 11,700 m2 of space as well as 70 parking spaces.
René Parmantier, CEO of Corestate Capital Group said: ‘The Luxembourg office market is highly competitive with low vacancy rates and only a limited number of new buildings. With this first-class office building, we have again demonstrated our market and investor access and, above all, our long-standing asset management experience in the Benelux countries. We are very pleased that we can now hand over this top-quality, modern and long-term profitable property over to its new owner Generali.’
Savills acted for the buyer.
