Union Investment acquires K Point scheme in Luxembourg

German real estate investor Union Investment has acquired K Point office scheme in Luxembourg for an undisclosed sum.

K-Point is a core H-shaped building developed in 2008 by Belgian developer Allfin and consists of 8,169 m² of office space, 1,041 m² of retail space, 655 m² of archive space and 87 parking units. It is built on five upper floors and two basement levels. The building is fully let, the office area being occupied by law firm Loyens & Loeff while the four retail areas are let to different retailers.

The property was sold by AXA Real Estate, acting on behalf of one of its clients.

Union Investment acquired the holding company that owns K Pont and intends to add the asset to its open-ended UniInstitutional European Real Estate fund.

K-Point is located on the Kirchberg Plateau - one of the three core office markets in Luxembourg - which have become increasingly attractive to international investors over recent years. Since the end of 2011, the strong fundamentals of the Luxembourg real estate market (low vacancy rate, sustained take-up, no speculative development) have increasingly attracted cross-border real estate capital.

AXA Real Estate was advised by Jones Lang LaSalle, while Union Investment was advised in the acquisition by CBRE.