Photo credit: Iko Real Estate 

The 5,000 square metre site is located about 800m from the Howald train station and 900m from the Luxembourg Sud park and ride.

“The location of the site is a key element of the transaction,” Martine Rorif, COO of Befimmo, stated in a press release. “We anticipate that this area will be a good alternative to the Cloche d’Or and in this perspective, we expect rents to increase and yields to decrease in the coming years.”

“Based on the current leases, the initial yield on investment is 5.6%,” the company said on 17 February.

The building was developed by Iko Real Estate in 2008-2010. Current tenants include the law offices of Bonn Steichen & Partners, the National Institute for the Development of Continuing Vocational Training (INFPC), Sumitomo Mitsui Trust Bank and Vantage Data Centers.

Befimmo is a real estate investment trust listed on the Euronext Brussels exchange. According to the firm, it “is a real estate operator specialising in office buildings, meeting centres and coworking spaces” in Belgium and Luxembourg. The company said that its portfolio, which includes its Silversquare subsidiary, had a fair value of €2.9bn as of 30 September 2020.