Union Investment Real Estate has acquired two assets in the largest office investment transaction in Luxembourg over the last six years.
Union Investment Real Estate has acquired two assets in the largest office investment transaction in Luxembourg over the last six years.
The K2 Ellipse and K2 Forte properties were sold by Aberdeen Asset Management Deutschland.
The financial details were not disclosed but CBRE, which acted for Aberdeen, said this was the largest office investment transaction in Luxembourg since 2007.
K2 Ellipse and K2 Forte are located at Avenue Kennedy 33 and Rue Borschette 2-2A in Luxembourg on the Kirchberg Plateau in Luxembourg.
The K2 Ellipse is a mixed-use building while K2 Forte is an office building developed respectively in 2008 and 2007 by Belgian developer Codic. K2 Ellipse consists of about 4,300 m2 retail space and about 4,150 m² of office space. K2 Forte comprises 8,250 m2 of office space.
K2 Ellipse is fully let, the office area being occupied by the law firm Allen & Overy while the six retail areas are let to different retailers and restaurants. K2 Forte is fully let to four office tenants: Allen & Overy, Fidelity Investments, JTC Luxembourg and Swiss RE.
K2 Ellipse and Forte are located on the Kirchberg Plateau - one of the three core office markets in Luxembourg - which has become increasingly attractive to international investors over recent years.
Maxime Kumpen, head of capital markets CBRE Belgium and Luxembourg, said: 'The strong fundamentals of the Luxembourg real estate market (low vacancy rate, sustained take-up, limited speculative development) have increasingly attracted cross-border real estate capital. The economic performance of Luxembourg itself has further increased the attractiveness of the country as a target, in particular for institutional real estate funds and asset managers seeking core sector acquisitions.'
