Belgian REIT Immobel has secured €80 mln of equity commitments at the first closing of the Immobel BeLux Office Development Fund, to invest a volume of up to €230 mln in office development projects in Belgium and Luxembourg.
The fund will develop office projects at core urban locations in Belgium and Luxembourg through a targeted equity commitment of €200 mln, allowing for an investment capacity of up to €550 mln.
Following this first commitment of €80 mln, raised from a limited number of institutional and private investors, further closings are expected to take place before the end of 2021.
The fund will acquire the first seed assets before the summer of 2021, comprising the redevelopment of the iconic Total headquarters in Brussels’ European district and an office development project in Cloche d’Or, Luxembourg.
Immobel said that the fund would also address the changing needs of office tenants in a post-Covid environment. The REIT anticipates further consolidation in the sector due to downsizing, as well as heightened expectations from tenants in the future, in terms of additional services in offices, more social experiences and higher-quality space.
The firm noted that Total has recently sold its former headquarters totalling 28,000 m2, before signing a 12-year rental agreement for 17,000 m2 in the Multi tower. This high-quality, carbon-neutral office building in the Brussels city centre is being developed by Immobel.
This first closing is part of Immobel’s overall strategy to develop its real estate investment management business further.
As well as the Immobel BeLux Office Development Fund, Immobel said it intended to establish additional real estate funds and real estate investment partnership solutions for institutional and qualified investors who wish to grow their real estate portfolio with acquisition, development and asset strategies in Europe.
