International fund manager M&G Real Estate has acquired a prime office building in Brussels for €41.5 mln, representing a net yield of 4.8%, from an unnamed vendor.
The asset, located on the Rue Guimard in the Leopold district of the city, was acquired on behalf of M&G Real Estate’s core European property strategy.
The 9,913 m2 building is 100% let to 'one of the world’s largest oil and gas companies', according to M&G.
'This latest acquisition stood out as a compelling investment opportunity in line with our core strategy to acquire office buildings in the city centres of major European hubs,' commented David Jackson, fund manager, M&G Real Estate.
'As Europe’s capital city, Brussels offers attractive macro fundamentals with a dynamic economy made up of both a strong Government component and buoyant private sector, which remains the largest driver.
'Transparent and mature European markets like Brussels, where strong fundamentals and economic stability prevail, will continue to be our focus,' he added.
'The location of this building in the heart of Brussel’s Leopold District was very attractive from an investment point of view, given the low vacancy and relatively tight supply of quality office space in this part of the city over recent years. We believe that these local market fundamentals will fuel rental growth, driving long term income returns on behalf of our investors,' concluded Simon Ellis, deputy fund manager, M&G Real Estate.
