M&G Real Estate has acquired a 15,383 m² office scheme "Trio" in Brussels for €42m. The deal was made on behalf of the M&G European Property Fund managed by David Jackson and Simon Ellis. The transaction follows the purchase of a prime office building on Rue Guimard in Brussels and brings M&G Real Estate’s overall exposure to the Belgian market to circa €267m.
Located on the edge of the central business district, Trio’s tenants include Pernod Ricard, the Belgian State and Rail Europe. As the economic and political centre of Europe and thus its high exposure to European political institutions, the Brussels market is considered more stable and less exposed to cyclical fluctuations than its other European counterparts. To tackle congestion issues, the government plans to invest circa €5.2bn into the city’s infrastructure by 2025, enhancing mobility and business efficiency.
David Jackson commented: “The economic stability, growth prospects and low vacancies in the office markets make Northern Europe an attractive place to invest. These markets fundamentals are in line with our core European Strategy and our ongoing commitment to Northern Europe will help us deliver long-term income driven returns for our investors.”
Olivier Vellay, Head of Investments for Continental Europe, explained:“Belgium is also a key market for M&G’s European long lease property strategy – the first pooled institutional fund to invest in Continental European long lease real estate. Launched in early 2016 in response to the changing dynamics of the European financing landscape, it provides institutional investors with income growth in line with inflation through investment into real estate leased to tenants over the long term.”
