Savills IM acquires office building in Brussels for €173m

Savills IM acquires office building in Brussels for €173m
Image: Courtesy of Savills IM

Savills Investment Management (Savills IM) has acquired an office building in Brussels for €173 million, on behalf of a foreign investor, from AXA and its current tenant as part of a sale-and-lease-back transaction.

Built in the 1990s, the complex covers 36,000 sqm and was renovated between 2017 and 2018. ”It is fully leased to a leading financial institution under a 12-year agreement,” said the company in a statement.

Situated on the fringe of Brussels North and central business district, near the Petite Ceinture (inner ring), the building enjoys a prime location within close walking distance of a mainline train station.

“We are delighted to have completed this new acquisition within just a few months despite the challenges posed by the pandemic. It demonstrates Savills IM’s ability to position itself in the market for significant and iconic core office assets. Belgium, and more specifically Brussels, remains at the heart of our investment strategy for 2021, both for our funds and dedicated mandates,” said Pierre Escande, Head of Investment, France and BeLux, Savills IM.

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”The Brussels office market is a destination for European institutions and governmental organisations, making it desirable to institutional investors searching for long leases and stable income. The asset is located within an appealing office submarket due to its strong transport links, featuring various high-rise Belgian and multinational company headquarters,” the company added in the statement.

Savills IM was advised by PricewaterhouseCoopers and Treex. The vendor was advised by Loyens Loeff and JLL under an exclusive sales mandate.