IVG has acquired Estuary Properties N.V, itself the owner of a prime multi-let asset in the heart of the Brussels CBD, just minutes walk from the European Parliament. The property is multi-let to a variety of tenants, whilst withstanding a 70% occupancy level.

The transaction marks a very important milestone in the Brussels real estate investment market, which had grinded to a complete halt during the last 12 months. This deal is ever more important due to its multi-let and slight vacancy profile, a profile which has been out of kilter with most investors recently. The deal also signifies the importance of the German funds who are the major players investing in real estate in Brussels today.

Savills, which advised the purchaser IVG, says “We believe this is an intelligent investment by IVG in relation to risk return profile of the investment. A variety of factors including its high yield and the lack of competing investors has modified return profile of such asset over the last year. We therefore have taken advantage of this opportunity whilst most other funds only seek long term single tenanted buildings.”

Knight Frank, adds that we are happy to have been able to close this deal as we will finally have comparables that can be used to define the new market area that we have entered. In Belgium many have been very reluctant to accept this fact and based their views on the absence of transactions to say that nothing had changed. Now they won’t be able to say this anymore.