Paperjam.lu

 Google maps

The offices, just a stone’s throw from Findel airport, were purchased for €100 million via the Fidelity Eurozone Select Real Estate Fund, Paperjam reports.

“We do not seek to position ourselves in the central business district market, but in B-tranche zones, around assets with good fundamentals,” Fidelity International portfolio manager Aymeric de Sérésin told Paperjam.

“Funds attract investors from diverse backgrounds, a lot from Europe, but also from Asia. These are institutional investors of pension funds and insurance, notably investors looking for a sustainable distribution.” The building was constructed in 2000 and Atoz, which sold the building to Fidelity, provides 80% of its rental income.

“We are looking for property via a pan-European team,” de Sérésin said, adding: “The Luxembourg market has positive fundamentals, the office stock is quite modern, there is little rental vacancy and limited over-supply allows rental values to be maintained”, suggesting this could be the first of several real estate acquisitions by the fund in the grand duchy.

The fund is evolving gradually, with a target in the short and medium terms of €100 million in investment following the capital raising of €300 million last year.