REInvest Asset Management has purchased the fully-let Bronze Gate office property in Luxembourg for €65 million.
The company acquired the property from the developers Nextensa and Promobe for the DEREIF SICAV-FIS fund which invests in European real estate.
The main investor in the Luxembourg-based real estate special fund is a major German insurance company.
Bronze Gate is set to receive a BREEAM “Excellent” sustainability certification.
The Bronze Gate office building is located at 5, Rue Charles Darwin in the new part of the Cloche d’Or quarter in Luxembourg City, a neighbourhood which is evolving with a mix of residential, working, shopping and recreational uses.
The entire Cloche d’Or quarter has been awarded the German DGNB Platinum sustainability standard, which also reflects the environmentally friendly design of the overall infrastructure. The quarter will also shortly be connected by Luxtram to the tram network of the city of Luxembourg.
“We are delighted to have acquired Bronze Gate, a modern and sustainable office property in the ever-growing southern gateway to Luxembourg City. The Luxembourg real estate market, with its favourable underlying conditions, offers very good investment opportunities, as is evident from the early and long-term full occupancy of the property,” adds Daniel Hohls-Larsson, Head of Transaction International and project manager at REInvest.
Bronze Gate, with its signature bronze facade, comprises six aboveground and two below-ground floors and around 5,040 sqm of rental space. It was completed in September 2022. The office property has already been pre-let on a long-term basis to the atHome Group research and brokerage company which specialises in real estate and vehicles, and the international law firm CMS DeBacker Luxembourg.
The law firms Linklaters LLP and Clifford Chance provided buy-side and sell-side advice respectively during the transaction. Drees & Sommer
advised REInvest on the technical issues associated with the purchase and were responsible for monitoring the construction phase.
“With Bronze Gate, we have secured a modern office property for our DEREIF SICAV-FIS real estate fund, fully let over the long term. The location is forward-looking and one of the up-and-coming districts in Luxembourg. We have also achieved high standards in the building’s ESG features. I would particularly like to highlight the excellent and very close partnership with the developers Nextensa and Promobe (Grossfeld),” declared Hans Stuckart, Managing Director of REInvest.