UK investor M&G Real Estate has acquired a multi-let office asset in Luxembourg from German fund manager Union Investment for €71 mln.
The deal, struck on behalf of its €2.2 bn pan-European growth strategy, represents the business's first acquisition in Luxembourg.
'With office employment growth and GDP likely to be one of the strongest in Europe over the next five years in the city, Luxembourg is a strong financial centre and obvious investment choice as we continue to bolster our presence in Continental Europe,' commented David Jackson, fund manager at M&G Real Estate.
The 12,412 m2 Da Vinci office is located in the Luxembourg airport district, and comprises five floors of office space, plus a restaurant, gym and parking garage. Long term tenants include the State of Luxembourg, Lombard, Bain Capital and Alsa - a government agency which supports the Luxembourg Civil Aviation Authority.
Union Investment bought the property in 2007 for around €67 mln.
M&G Real Estate’s European core strategy has deployed around €700 mln of capital in the last twelve months, with acquisitions made in Denmark, France, Germany, Italy and Portugal.
In May this year, M&G Real Estate invested €94.1 mln in the acquisition of an office building in Germany, on Badensche Strasse in Berlin.
