BayernLB's real estate fund provider Real IS has acquired an office building in Brussels for its Bayerische Grundvermögen VI (BGV IV) special alternative investment fund.
South City Fonsny is a fully let office scheme in Brussels, with four tenants occupying a 14,200 m2 rental area. The transaction volume was not disclosed.
'The superior quality of the property, its excellent location in the centre of the Brussels metropolitan region, as well as the high credit rating of the anchor tenant, which is comparable to a public-sector institution, were compelling arguments for us,' commented Georg Jewgrafow, Real IS's CEO.
'As the seat of the European Commission, of the European Parliament and NATO, Brussels is especially characterised by its public and business-related service sector, which is also reflected in the strong demand for office space,' Jewgrafow added.
The asset is located in Brussels' south (Midi) office submarket. Alongside the office space, the ground floor houses three retail units used as restaurant facilities.
Real I.S. announced in July that it had successfully raised more than €600 mln for its core / core plus BVG VI fund focused on the euro area.
The fund's country allocation provides for an investment of up to 40% in Benelux countries, almost 50% of which has been achieved through this deal. In Germany, BGV VI is invested in Berlin, Munich, Bonn, Rostock and Buchholz, and in Amsterdam and Moerdjik in the Netherlands.
The fund has also bought properties in Dublin, Ireland and in Brussels, Belgium.
