Investment and asset management firm Valesco has bought the Finance Tower in Brussels for circa €1.2bn (£1.01bn) in the second-largest single-asset deal ever struck in mainland Europe.
Backed by South Korean institutional investor Meritz Securities, the 36-storey tower was bought from Breevast and ZBG in an off-market deal representing an acquisition yield of 4.85%.
It is the largest single acquisition made in mainland Europe apart from the Coer Défense deal.
Allianz, LGIM, SMBC and Bayern LB provided a circa €720m senior facility loan for the 1.99m sq ft tower.
The annualised rent roll is €59m and the asset is let on a 15-year lease to the Régie des Bâtiments, a Belgian government agency, on behalf of the Ministries of Finance and Social Security.
Shiraz Jiwa, founder and chief executive of Valesco Group, said: “This transaction continues our strong commitment to the European market in which we have invested €2bn in the last 20 months alone and see substantial potential to further deploy capital to deliver value for our institutional and sovereign investors.
“The exceptional quality of the tenant and asset coupled with the strategic and dynamic CBD micro-location, with the backdrop of strengthening Brussels real estate fundamentals, offers further asset management and value creation opportunities for capital appreciation.”
Cushman & Wakefield, Ashurst, PwC and Arcadis advised Valesco; CBRE, Loyens Loeff, Stibbe and PwC legal advised Breevast and ZBG.
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