Pan-European real estate investment firm PATRIZIA AG has purchased AIRE, an office building in Luxembourg City on behalf of its institutional clients. The purchase price was not disclosed.
AIRE is located on Route d’Esch 80 in the western part of Luxembourg’s central business district, which is home to embassies, private banks, law firms and financial institutions, as well as prime residential towers.
The 5,600 sqm 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 362 sqm of storage space, 43 parking spaces and a garden area.
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”We are confident in the ongoing resilience of the Luxembourg market..”
“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 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,” aid Sheelam Chadha, who is in charge of transactions for PATRIZIA in Belgium and Luxembourg.
The acquisition increases the number of properties PATRIZIA manages in Luxembourg to 13, comprising total space of around 87,000 sqm, with a total value of approximately EUR 800 million, said the company.