PATRIZIA acquires large office building in Luxembourg city centre
PATRIZIA has acquired 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 sq m, with a total value of approximately EUR 800 million.
Sheelam Chadha, who is in charge of transactions for PATRIZIA in Belgium and Luxembourg, says: “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 sq m 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 sq m 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 per cent for the overall market and 0.29 per cent 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.