Patrizia AG has acquired the AIRE office building in Luxembourg City on behalf of its institutional clients. The acquisition increases the number of properties Patrizia manages in Luxembourg to 13, comprising total space of around 87,000m², with a total value of approximately €800m. The purchase price was not disclosed.
The 5,600m² building is fully let to Brown Brothers Harriman, one of the largest private banks in the United States, with a WAULT of 10.5 years. The property, which was completed in 2015, has a BREEAM ‘Very Good’ rating and also includes 362m² of storage space, 43 parking spaces and a garden area. The asset benefits from an excellent location and is easily accessible via the A4 motorway which provides direct access via car to France, Germany and Belgium.
Sheelam Chadha, who is in charge of transactions for Patrizia in Belgium and Luxembourg, commented: “We are pleased to have completed discussions to buy this prime asset on behalf of our clients during this current time of uncertainty for the world economy, highlighting our ability to execute transactions during this period. This asset offers a highly stable and secure rental income backed by strong collateral which is even more important in today’s market environment. We are confident in the ongoing resilience of the Luxembourg market, which remains a desirable investment location with robust demand for office space and limited vacancy due to its position as a worldwide financial centre and an established hub for major multinational companies in Europe.”
