2022-07-08 9:00 CET, Germany | Press release
Munich, 8th July 2022: The W4 office building in the Leudelange district to the southwest of Luxembourg City has been acquired under a single German pension fund mandate by Munich-headquartered Catella Real Estate AG (CREAG) in cooperation with Maastricht-based Catella Investment Management Benelux (CIMB). The property was purchased on behalf of the “AVW European Real Estate Fund”, a German institutional ‘Spezialfonds’ structure launched at the end of 2020. The seller of the asset, which is fully leased, is Parfinimmo S.A.
The W4 building is located at 17 rue Léon Laval L-3372 Leudelange, Luxembourg on the Am Bann Business Park and has a total gross lettable area (GLA) of 4,955 sqm, including 4,519 sqm of office space, 235 sqm of retail and around 201 sqm of storage space, spread over three upper and two basement floors. It also has 42 indoor and 37 outdoor parking spaces. The property was built in 2020 and will obtain BREAAM ‘Very Good’ sustainability certification. The tenants of the building are PARFININDUS S.à R.L., Willemen International S.A. and SRB LUX S.à R.L.
Fabian Pick, Portfolio Manager at CREAG’s AVW European Real Estate Fund, said: “The W4 office building is a perfect match for the profile of the AVW fund investment mandate. It is a recently constructed sustainable office asset that also incorporates commercial space on the ground floor, providing a diverse tenant mix. The vendor in this deal, the ParFi Group, is also the main tenant, which means the building has been well maintained and managed by them as the current owner. The property is situated in a growing alternative office sub-market to the Luxembourg CBD and offers very stable cash flows to underpin long-term attractive investment returns. It also provides further geographical diversification to the fund’s portfolio in Luxembourg, as one of the more attractive office markets in Europe, following our previous investments under its mandate in Augsburg, Essen, Cologne, Barcelona and Brussels. The Fund has invested EUR 160 million since inception and is targeting the continuing enhancement of its real estate portfolio throughout Europe”
Ralph Willems, Senior Acquisition Manager at Catella IM Benelux, said: “The acquisition of W4 is the third addition to Catella’s Luxembourg real estate investment portfolio. The strong tenant covenants in a flourishing office location support our high confidence in this investment and we are actively seeking similar opportunities in the Luxembourg market.”
The Leudelange business district is situated a few kilometres to the southwest of Luxembourg city and is one of the municipalities forming the first belt around the urban centre in an extension of the Howald and the Cloche d'or areas.
Over the last five years, the zone of Leudelange where the property is located has been expanding and now accommodates major insurers (Foyer, La Luxembourgeoise, DKV Luxembourg), banks (Raiffeisen), automotive activities (Car Avenue, Lease-plan, Mercedes dealership) and IT (SIX Payments, Lineheart, 3C payment). More recently, new occupiers that have arrived, or will come to the Leudelange district, include La Baloise, Northern Trust, Regus and BSP, demonstrating the growing occupier interest in the area due to its excellent accessibility, dynamic mix of companies and broad range of local amenities.
Catella was advised by Stibbe, Drees & Sommer and Deloitte in the due diligence process.
Inowai acted as agent to the vendor.
ENDS
About Catella Real Estate AG
Catella Real Estate AG (CREAG), founded in January 2007 and headquartered in Munich, is engaged in the management of real estate investment funds and in providing advice on investing in real estate.
CREAG is a licensed capital management company (KVG) under German investment law (KAGB). The purpose of the company is the conception, development and management of open-ended real estate investment funds based on the expertise and outstanding market position of the Catella Group. CREAG currently manages assets of €7.1 billion in 19 real estate funds (March 2022).
About Catella Investment Management Benelux (CIMB)
Catella Investment Management Benelux (CIMB) is part of the Catella group, a leading specialist in property investments and fund management with operations in 12 European countries and approximately 550 employees, including approximately 25 staff in the Benelux. The group manages assets of approximately €12 billion (May 2022). Catella is listed on Nasdaq Stockholm in the Mid Cap segment.
CIMB is the local office that offers fund, acquisition and asset management for all Catella-managed funds with an allocation to the Benelux region. CIMB has a broad real estate portfolio with some 75% invested in residential property and the balance in commercial assets. CIMB currently has about €1.9 billion (May 2022) in assets under management in the Benelux and is anticipating investing some €600 million per annum in these markets over the next few years. CIMB is a member of the Catella European residential network alliance.
Notes:
The investment offer "AVW European Real Estate Fund" presented here is aimed exclusively at professional investors within the meaning of the German Investment Code (Kapitalanlagegesetzbuch, KAGB). It is an entrepreneurial investment with a long-term commitment that is associated with risks. Investors provide the investment company with equity capital that can be consumed by losses. The investment can only be traded to a limited extent. There is a risk that it cannot be sold. Future performance is subject to taxation, which depends on the personal situation of the respective investor and may change in the future. There are further risks which are explained in the information for professional investors pursuant to Section 307 (1) and (2) KAGB; these are available from Catella Real Estate AG, Alter Hof 5, 80331 Munich.
For more information please contact:
Catella Real Estate AG
Julia Stübler
Marketing & PR Manager
T: (0)89 189 16 65 275
F: (0)89 189 16 65 466
M: +49 (0)152 389 228 65
E: julia.stuebler@catella-investment.com
Catella IM Benelux
Ralph Willems MRICS
Senior Acquisition Manager
T: +31438200302
M: +316 289 45516 (0)152 389 228 65
For further information please visit our website: www.catella.com/immobilienfonds