JER Partners ('JER') in joint venture with Catalyst Capital has agreed to acquire eight mixed-use properties in Brussels from Kungsleden AB for €90.5 million. Senior debt will be provided by Barclays Capital.
The portfolio of eight properties is comprised principally of offices but with some elements of retail and residential. The largest asset is the 55,000 m² Manhattan Centre a 1970's office tower with shops, which is scheduled to undergo a €15 million renovation programme to both increase occupancy levels and improve longer-term performance. The transaction is expected to close in January 2007.
Fabrice de Clermont - Tonnerre, Partner at Catalyst Capital, commented: "We are delighted to have acquired this mixed use property portfolio in Brussels with JER, with whom we have a long standing and successful relationship. This is the first acquisition with JER on the Continent and reinforces Catalyst Capital's key strategy of purchasing existing assets where there are significant opportunities to add value through renovation and repositioning."
Malcolm Le May, President Europe at JER, said: "Having already undertaken two successful acquisitions with Catalyst Capital we believe that by working together we can help this portfolio to achieve its full potential."
Bill Hancock, Director at JER, commented: "This deal marks a new phase in our partnership with Catalyst Capital. We are extremely pleased to be able to work with a firm with such expert capabilities as well as a compatible investment philosophy."
JER and Catalyst Capital were advised by Beele & Co. The vendor was advised by Catella.
Source: HeadLand Consultancy
