Union Investment acquires K2 Dolce, Luxembourg (LU)

A German Fund has sold K2 Dolce, a state-of-the-art office building located rue Borschette 2B-2C in the Kirchberg office district of Luxembourg, to Union Investment. CBRE advised the Seller. The purchase price was not disclosed. K2 Dolce is a seven-storey office building delivered in 2007.
It is part of the larger scheme consisting of the six K2 office buildings developed by CODIC between 2006 and 2008. After K2 Ellipse and K2 Forte, which Union Investment acquired in 2014 for its retail fund UniImmo: Deutschland, and K2 Ballade, K2 Dolce is the fourth building of this recent development scheme to be traded in 2014.
K2 Dolce is added to one of Union Investment’s institutional funds. The property totals approximately 8.700 m² of office areas, 630 m² of archive areas and 114 parking units. It is fully let to a mix of strong tenants.
K2 Dolce is located in the heart of the well-known and internationally recognized Kirchberg office district of Luxembourg, one of the most sought after office districts for large international institutional investors.
This transaction evidences the strong attractiveness and depth of the Luxembourg real estate market due to extremely strong market fundamentals, i.e. low vacancy rate, sustained take-up, limited speculative development and increasing rental levels. These market fundamentals, in combination with the economic performance of Luxembourg, have continued to attract international investors looking for core real estate investment products.
Source: CBRE