Penta Real Estate has sold the Business Centrum Tesla (BCT) 2 office building in Košice to Austrian-based European City Estates (ECE). It has also agreed to sell BCT 3 upon completion.
BCT 2 provides 14,600 square meters of office space. The largest tenants include T-Systems Slovakia, Deloitte, Diebold-Nixdorf and Colonnade. The purchase price was not disclosed.
A building permit has already been issued for the BCT 3, and the start of construction is planned for next spring. The total leasable area of BCT 3 will be 15,500 square meters.
Juraj Nevolník, Chief Executive Officer of Penta Real Estate Slovakia, says, “BCT 2 is one of our most successful office projects. Demand for its modern premises has been so high, that the building was almost fully let since its opening. We are pleased that this property will be part of the portfolio of such an important investor – for us, it is a good testimony that we implement quality projects that are interesting for investors from both commercial and technical view.”
Outstanding quality of BCT 2
Dejan Mansfeld-Rupnik, Member of the Board at ECE European City Estates Group, explains, “Our decision to invest in Košice was driven by the outstanding quality of BCT 2 as an office building and the very positive sentiment we have about the Košice region in general and especially the office market there. We appreciate also the very professional transaction management by Penta Real Estate Slovakia.”
JLL acted for the seller. Rudolf Nemec, Capital Markets JLL Slovakia, says, “In the capitals of Central Europe, we currently see a strong competition among investors during bidding processes. It forces investors to look for interesting opportunities beyond the usual areas.
“With the exception of Polish regional cities, where foreign and even institutional capital is present, the decision of investors to direct capital into the office sector in regional cities in Central Europe is relatively rare. Therefore, those who are able to properly assess investment potential and are not burdened with prejudices can benefit from less competition and higher returns on their investment.”
Together with the fully leased BCT 1 office building of 17,650 square meters and the planned construction of the third phase, the BCT will form a large office and technology park providing 48,000 square meters of leasable space in Košice, with good transport and communication connections.
PATRIZIA buys AIRE office building
PATRIZIA AG, the global partner for pan-European real estate investment, has acquired the AIRE office building in Luxembourg City on behalf of its institutional clients.
The acquisition increases the number of properties PATRIZIA manages in Luxembourg to 13, comprising total space of around 87,000 square meters, with a total value of around €800 million.
Sheelam Chadha, who is in charge of transactions for PATRIZIA in Belgium and Luxembourg, says, “We are pleased to have completed discussions to buy this prime asset on behalf of our clients during this current time of uncertainty for the world economy, highlighting our ability to execute transactions during this period.
Ongoing resilience of market
“This asset offers highly stable and secure rental income backed by strong collateral which is even more important in today’s market environment. We are confident in the ongoing resilience of the Luxembourg market, which remains a desirable investment location with robust demand for office space and limited vacancy due to its position as a worldwide financial centre and an established hub for major multinational companies in Europe.”
The 5,600 square meter building is fully let to Brown Brothers Harriman, one of the largest private banks in the United States, with a WAULT of 10.5 years. The property, which was completed in 2015, has a BREEAM ‘Very Good’ rating and also includes 362 square meters of storage space, 43 parking spaces and a garden area.
AIRE is on Route d’Esch 80 in the western part of Luxembourg’s central business district, which is home to embassies, private banks, law firms and financial institutions, as well as prime residential towers.
Luxembourg City has one of the lowest vacancy levels in Europe at 2.1% for the overall market and 0.29% in the central business district. The area is currently undergoing extensive redevelopment and a new tram line, now free for all users in Luxembourg city, is due to be completed by 2021.
The office building is easily accessible via the A4 motorway which provides direct access via car to France, Germany and Belgium. The Park & Ride facility located beside the building is a key transportation hub with local, national and international bus routes, while the nearby railway station connects to Paris in just over two hours via TGV.
Three warehouses purchased
Edmond de Rothschild REIM has acquired an industrial property at Rutherfordweg 75 in Utrecht, Netherlands, for the Edmond de Rothschild Euro Industrial Real Estate Fund.
The seller is a private investor. The parties have agreed not to disclose the purchase price.
It comprises three warehouses, one of which has been converted into a double storey building to provide a showroom and offices. The lettable area of the asset totals around 2,100 square meters on a plot of land of around 11,000 square meters.
The property is occupied on a long lease to a manufacturer and wholesaler of brick paving, ceramic tiles, garden sheds, garden timber, synthetic turf and other garden products.
More purchases under consideration
René de Heus, Head of Investment Benelux at Edmond de Rothschild REIM, says, “This purchase is a further systematic implementation of our fund strategy of acquiring light industrial properties in densely-built urban locations where we anticipate on rental growth and a possible redevelopment on this particular location. The acquisition in Utrecht means that the fund’s portfolio now comprises 15 properties. Further property acquisitions are already under consideration.”
Brokerage firm 1530 Real Estate advised Edmond de Rothschild REIM on the transaction. DLA Piper advised on legal issues and SGS Research on technical matters. The seller was advised by Bernd-Jan Bolwijn Vastgoed Consultancy B.V.
The Edmond de Rothschild Euro Industrial Real Estate Fund is open-ended and has a core plus risk profile. At the moment the portfolio consists of 14 assets with a total Gross Asset Value of approximately €85 million. It aims to deliver to its investors an average net income return of more than 6% per annum over a ten-year period.
The open-ended fund is domiciled in Luxembourg in the form of a FCP-RAIF. Pancura S.A. is the Alternative Investment Fund Manager and Aztec Group is the Central Administrator.
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