London-based Savills has acquired an office asset in Brussels on behalf of a private Belgian investor for a sub-4% yield.
London-based Savills has acquired an office asset in Brussels on behalf of a private Belgian investor for a sub-4% yield.
According to well-informed sources who asked to remain anonymous, the 7,600 m2 building on a prime location at Rue Neuve sold for a price just under €20 mln, reflecting a yield of 3.8%. The vendor was Swiss financial services provider Credit Suisse.
Private investors have been quite active in the Belgian real estate market this year. Indeed, some are being more successful than institutional investors in the low-volume lot size segment as they are able to afford keener yields.
The Rue Neuve asset consists primarily of office space and includes 855 m2 of retail. It is understood that one of the options being considered is conversion of the office space into residential. This could potentially lift the yield by at least 200 basis points, one market watcher said.
Elsewhere in Brussels, Belgian developer Wilhelm & Co is reportedly in talks to sell the Médiacité shopping centre in Liège. Market sources say the sale may be finalised by the end of the year for a price tag of around €200 mln. In June 2011, the company aborted plans to list nearly €200 mln worth of certificates backed by the 45,000-m2 shopping centre, citing 'unfavourable market conditions'.
