DEGI GLOBAL BUSINESS buys its first property in Luxembourg (LU/DE)

The property fund company DEGI Deutsche Gesellschaft für Immobilienfonds mbH acquires for around €46 million a three-storey office building in the Grand Duchy of Luxembourg through a property holding company.

The property features 7,328 m² of office space, 2,270 m² of archival area, plus parking for 81 cars, and is fully let. The office areas can be flexibly used, and divided up into rental units of around 500 m². The principal tenants are SEB Bank and the European Court of Auditors. Following purchases in Paris, Cologne and Zagreb, this is the fourth property for DEGI GLOBAL BUSINESS, which focuses particularly on the needs of institutional investors and affluent private customers.

Luxembourg's GDP is predicted to grow by around 3.0% in 2006 as well. The office property market, driven by the strong performance of the fund and finance sectors located there, is riding a stable uptrend. In terms of both macro-economic and property-sector factors, Luxembourg ranks 11th out of 69 locations in global location scoring of DEGI, the real estate investment manager of Allianz.

Completed in 2000, the "6, Circuit de la Foire" property is located in Luxembourg's submarket of Kirchberg, a fully established and together with the CBD most important office location of Luxembourg. Banks, financial service providers and European institutions like the EU Commission and the European Court have taken up residence there. The submarket's vacancy ratio lies at 3%.

Kirchberg has excellent links to the motorway network and the airport. By 2007, the submarket will be even more closely integrated into the public urban transport system once the tram line from the city centre to the airport has been completed.

Source: DEGI

Related News