?atella Real Estate AG (CREAG) in cooperation with Maastricht-based Catella Investment Management Benelux (CIMB) has acquired the W4 office building in the Leudelange district of Luxembourg City. The property was purchased on behalf of the “AVW European Real Estate Fund”, a German institutional ‘Spezialfonds’ structure launched at the end of 2020. The seller of the asset, which is fully leased, is Parfinimmo S.A.
The W4 building is located at 17 rue Leon Laval L-3372 Leudelange and comprises 4,955m², including 4,519m² of office space, 235m² of retail, and around 201m² of storage space, spread over three upper and two basement floors. It also has 42 indoor and 37 outdoor parking spaces. The property was built in 2020 and will obtain BREAAM ‘Very Good’ sustainability certification.
Fabian Pick, Portfolio Manager at CREAG’s AVW European Real Estate Fund, said: “The W4 office building is a perfect match for the profile of the AVW fund investment mandate. It is a recently constructed sustainable office asset that also incorporates commercial space on the ground floor, providing a diverse tenant mix. The vendor in this deal, the ParFi Group, is also the main tenant, which means the building has been well maintained and managed by them as the current owner. The property is situated in a growing alternative office sub-market to the Luxembourg CBD and offers very stable cash flows to underpin long-term attractive investment returns. It also provides further geographical diversification to the fund’s portfolio in Luxembourg, as one of the more attractive office markets in Europe, following our previous investments under its mandate in Augsburg, Essen, Cologne, Barcelona and Brussels. The Fund has invested €160m since inception and is targeting the continuing enhancement of its real estate portfolio throughout Europe.”
Ralph Willems, Senior Acquisition Manager at Catella IM Benelux, said: “The acquisition of W4 is the third addition to Catella’s Luxembourg real estate investment portfolio. The strong tenant covenants in a flourishing office location support our high confidence in this investment and we are actively seeking similar opportunities in the Luxembourg market.”
