Financial tenants back in vogue as savills closes second multi let in Brussels CBD with IVG

IVG represented by Savills, the international real estate advisor, has acquired multi-let office building, Rue Guimard 7, in the heart of the EU district in Brussels CBD for an undisclosed figure. The building totals 4,400 sq m (47,362 sq ft) and is located in the vicinity of Square Frere Orban behind Avenue des Arts. It has been maintained to a very high standard since its construction in 1993.

The building is fully let to a host of prime tenants including Banque Degroof, one of Belgium’s most established private banks; Aareal Bank, a leading provider of commercial real estate financing in Europe; and international law firm Morgan Lewis.

The deal is critical in establishing current pricing for multi-let buildings and in particular, demonstrating the strength of covenants for financial tenants which most investors have shunned over the last year. The property is let to seven tenants of which over 50% are companies in the banking sector.

Gregory Martin of Savills Belux says: “The investment of Guimard 7 marks another important deal for the 2009 Brussels investment market which we are proud to announce in these difficult times. It is the second multi-let acquisition of the year in which Savills has taken part. The tenant mix in Guimard 7, although dominated by financial institutions, is yet more evidence that investors are starting to broaden their investment scope again.

Wout Buitink of IVG adds: “We are very pleased to have secured this transaction given its quality, location and healthy mix of tenants. It perfectly matches the investment strategy of some of our special funds which have been very keen to acquire grade A multi-let assets.”

source : Savills