Belgian REIT Leasinvest has expanded its portfolio in Luxembourg with the acquisition of an office building for €35 mln.
The Mercator property at 110-112 route d'Arlon in the City of Luxembourg comprises 8,641 m2 across five floors and 104 parking spaces. Route d'Arlon is one of the main access roads to Luxembourg City. The building is currently let for 42% for an annual rent of just over €1 mln.
Leaseinvest's Luxembourg subsidiary is tasked with increasing the occupancy rate to maximise the rental income.
The investment volume of €35 mln would reflect a gross rental yield of 6.75% if and when the property is fully leased out, the company said. The transaction involved the acquisition of the Mercator holding company that owns the building.
Leaseinvest said that the deal was part of its strategy to strengthen the geographical diversification of the portfolio towards Luxembourg.
Leaseinvest CEO Jean Louis Appelmans said the company expected to increase the occupancy rate by the end of 2017.
Listed in Brussels, Leaseinvest has a market capitalisation of over €515 mln. The company owns and manages €895 mln of office, retail and logistics real estate across Luxembourg (51% of the portfolio), Belgium (40%), Switzerland (5%) and Austria (4%).
