AXA Real Estate completes first acquisition in Luxembourg on behalf of the Caesar Fund (LU)

AXA Real Estate Investment Managers, announce that it has completed the acquisition of all the shares of a company owning a core office building in the Kirchberg area of Luxembourg, “Monnet 6”, from Deka Immobilien GmbH for €32.2 mln.
The transaction was made on behalf of the Caesar Fund, a regulated fund for Italian institutional investors, launched by AXA Real Estate Investment Managers SGR S.p.A., an Italian regulated subsidiary of AXA Real Estate.
The multi-let asset comprises 4,485 m² of office space over five storeys and is currently fully let to five high quality tenants. The property also includes around 650 m² of storage and archiving space, as well as parking for 141 cars.
Built in 1992, Monnet 6 was extensively refurbished and modernized in 2012. The asset is located in the highly accessible Kirchberg area of Luxembourg’s central business district, which is conveniently situated adjacent to a motorway within 30 km of the French, German and Belgian borders. The Kirchberg also benefits from excellent public transportation links with multiple train and tram lines connecting to the area, and is just 7 km from Luxembourg’s international airport.
The Fund has now invested €326.5 mln and the acquisition is both its first in Luxembourg and is consistent with its strategy to acquire well-let, core office buildings located on the periphery of central business districts in main European cities. At its last close in October 2012, the Fund had raised €209 mln in equity from 12 Italian institutional investors alongside AXA insurance companies, giving it a total potential fund size of €415 mln once fully invested.
Guy Van Wymersch, Head of Benelux at AXA Real Estate, commented: “This transaction is illustrative of AXA Real Estate’s aim to capitalize on the resilient economic fundamentals and established real estate market that the Benelux region provides. The Kirchberg office market in Luxembourg is characterized by a remarkably low vacancy rate of 1.8% and strong rental growth, appealing to an increasing number of international companies.”
Source: AXA Real Estate