REInvest snaps up Bronze Gate office in Luxembourg

The fully-leased asset was purchased from developers Nextensa and Promobe Grossfeld for €65 mln.

The property was acquired by REinvest for the Dereif SICAV-FIS fund which invests in European real estate and is majority backed by a major German insurance company.

Daniel Hohls-Larsson, head of transaction international and project manager at REInvest said: 'We are delighted to have acquired Bronze Gate, a modern and sustainable office property in the ever-growing southern gateway to Luxembourg City.

'The Luxembourg real estate market, with its favourable underlying conditions, offers very good investment opportunities, as is evident from the early and long-term full occupancy of the property.'

Bronze Gate, which is set to receive a BREEAM Excellent sustainability certification, is located at 5, Rue Charles Darwin in the new part of the Cloche d'Or quarter in Luxembourg City, a neighbourhood which is evolving with a mix of residential, working, shopping and recreational uses.

The entire Cloche d'Or quarter has been awarded the German DGNB Platinum sustainability standard, which also reflects the environmentally friendly design of the overall infrastructure. The quarter will also shortly be connected by Luxtram to the tram network of the city of Luxembourg.

With its signature bronze facade, the office comprises six above-ground and two below-ground floors and around 5,040 m2 of rental space. It was completed in September 2022.

The office property has already been pre-let on a long-term basis to the atHome Group research and brokerage company which specialises in real estate and vehicles, and the international law firm CMS DeBacker Luxembourg.

Law firms Linklaters and Clifford Chance provided buy-side and sell-side advice respectively during the transaction.

Drees & Sommer advised REInvest on the technical issues associated with the purchase and were responsible for monitoring the construction phase.