M&G Real Estate has expanded its office portfolio in Belgium by acquiring the Trio office scheme in Brussels for €42 mln.
Trio is a 15,383 m2 modern office scheme on Chaussée de Charleroi in the Louise district of Brussels. Located on the edge of the central business district, Trio’s tenants include Pernod Ricard, the Belgian State and Rail Europe.
The deal was made on behalf of the M&G European Property Fund managed by David Jackson and Simon Ellis. This follows the purchase of a prime office building on Rue Guimard in Brussels and brings M&G Real Estate’s overall exposure to the Belgian market to €267 mln.
M&G Real Estate said that as the economic and political centre of Europe and thus its high exposure to European political institutions, the Brussels market was considered more stable and less exposed to cyclical fluctuations than its other European counterparts. To tackle congestion issues, the government plans to invest circa €5.2 bn into the city’s infrastructure by 2025, enhancing mobility and business efficiency.
Olivier Vellay, head of investments for Continental Europe, said: 'Belgium is also a key market for M&G’s European long lease property stragegy – the first pooled institutional fund to invest in Continental European long lease real estate. Launched in early 2016 in response to the changing dynamics of the European financing landscape, it provides institutional investors with income growing in line with inflation through investment into real estate leased to tenants over the long term.'
M&G Real Estate’s European offices are located in Frankfurt, Madrid, Paris and Stockholm.
