The Royal Park office building, on boulevard Royal, has been sold to Pontegadea, an investment vehicle for the family behind the Zara fast fashion chain, for €175m. Illustration: BFF.../Baltisse

The Royal Park office building, on boulevard Royal, has been sold to Pontegadea, an investment vehicle for the family behind the Zara fast fashion chain, for €175m. Illustration: BFF.../Baltisse

The recently completed Royal Park building has just been acquired. Baltisse has sold it to Amancio Ortega’s family holding company, Pontegadea. The Spanish billionaire is none other than the founder of the Inditex group, which owns Zara.

It’s a major deal for the real estate market, which otherwise has been rather quiet: the Pontegadea investment company, owned by Spanish billionaire Amancio Ortega, has just acquired the Royal Park building on boulevard Royal in Luxembourg. The building had undergone extensive renovation and conversion (architect: BFF...) at the initiative of Baltisse, its former owner. This is the first time that the holding company has made a property acquisition in Luxembourg. Reuters reported a sale price of €175m.

Pontegadea invests mainly in high-end real estate and office towers, while recently diversifying its portfolio with energy and logistics properties in Europe and North America. Its capital is estimated at $20.1bn. Earlier this year, the holding company acquired a logistics centre in the Netherlands.

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In total, the Royal Park building has 10,490m2 of office space, plus 124 underground parking spaces and 911m2 of document storage space. The building is currently 95% let, with tenants including CVC Capital Partners and law firms.

This transaction was carried out with the assistance of PWC Legal Belgium. CBRE Belgium and BNP Paribas Real Estate assisted the seller. The buyer was advised by Linklaters, Treex and JLL Belgium.

Originally published in French by and translated for Delano

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