PATRIZIA Immobilien AG has acquired a portfolio of five office buildings totaling 8,564 square meters (92,182 square feet) in the central business district of Luxembourg, on behalf of a separate account client, for €85 million ($97 million). The assets were purchased from banking services group Intesa Sanpaolo Holding International through a sale and leaseback arrangement. Intesa will continue to occupy the properties until 2022 when the firm will move to a new combined headquarters building.
Sheelam Chadha, investment director for BeLux at PATRIZIA, said, “This transaction represents an opportunity to deliver strong returns to our client. Once the current occupier vacates the premises in 2022, we intend to implement a comprehensive refurbishment and lettings program to improve the rental tone and capital value of these assets. This strategy is underpinned by the portfolio’s prime location where demand for high-quality office space remains strong in the face of limited supply.”
The portfolio comprises two joint properties on Rue Prince Henri with the remaining three assets located on Avenue de la Liberte.
