PATRIZIA buys large office building in Luxembourg city centre
Luxembourg’s office market remains resilient due to continued and stable demand
- Around 5,600 sqm property fully let to Brown Brothers Harriman until 2030
- Purchased on behalf of PATRIZIA’s institutional clients
- Increases PATRIZIA’s assets under management in Luxembourg to around EUR 800 million
Augsburg / Luxembourg, 16 April 2020. PATRIZIA AG, the global partner for pan-European real estate investment, announces the acquisition of the AIRE office building in Luxembourg City on behalf of its institutional clients. The acquisition increases the number of properties PATRIZIA manages in Luxembourg to 13, comprising total space of around 87,000 sqm, with a total value of approximately EUR 800 million.
Sheelam Chadha, who is in charge of transactions for PATRIZIA in Belgium and Luxembourg, commented: “We are pleased to have completed discussions to buy this prime asset on behalf of our clients during this current time of uncertainty for the world economy, highlighting our ability to execute transactions during this period. This asset offers highly stable and secure rental income backed by strong collateral which is even more important in today’s market environment. We are confident in the ongoing resilience of the Luxembourg market, which remains a desirable investment location with robust demand for office space and limited vacancy due to its position as a worldwide financial centre and an established hub for major multinational companies in Europe.”
The 5,600 sqm building is fully let to Brown Brothers Harriman, one of the largest private banks in the United States, with a WAULT of 10.5 years. The property, which was completed in 2015, has a BREEAM ‘Very Good’ rating and also includes 362 sqm of storage space, 43 parking spaces and a garden area.
AIRE is located on Route d’Esch 80 in the western part of Luxembourg’s central business district, which is home to embassies, private banks, law firms and financial institutions, as well as prime residential towers. Luxembourg City has one of the lowest vacancy levels in Europe at 2.1% for the overall market and 0.29% in the CBD. The area is currently undergoing extensive redevelopment and a new tram line, now free for all users in Luxembourg city, is due to be completed by 2021.
The asset benefits from an excellent location and is easily accessible via the A4 motorway which provides direct access via car to France, Germany and Belgium. The Park & Ride facility located beside the building is a key transportation hub with local, national and international bus routes, while the nearby railway station connects to Paris in just over two hours via TGV.
PATRIZIA AG has been active as an investment manager in the real estate market across Europe for more than 35 years. PATRIZIA’s activities include the acquisition, management, repositioning and disposal of residential and commercial real estate through its best-in-class local network in all key markets. As a global partner for pan-European real estate investment, PATRIZIA operates as a trusted and independent business partner of large institutional, (semi-)professional and private investors in all major European countries. PATRIZIA manages more than EUR 44 billion of real estate and infrastructure assets, primarily as an investment manager for insurance companies, pension fund institutions, sovereign funds, savings and cooperative banks. PATRIZIA is committed to responsible investments and positive social impact. The PATRIZIA Children Foundation has helped over 200,000 children in need worldwide for over 20 years, giving them access to education and greater opportunities to lead better lives. For further information, please visit: www.patrizia.ag.
Head of Corporate Communications
Phone: +49 (0) 821 5 09 10-636