21 April 2020
- Henri d'Ursel, Marc Mehlen, Katia Gauzès, Geoffrey Scardoni, Sébastien Schmitz, Stefanie Ferring, Alma Custovic, Frédérique Davister, Josselin Badoc, Sadan Ramovic
- Brussels, Luxembourg
Clifford Chance advised Patrizia on the acquisition of the distinctive AIRE office building located in Luxembourg
Clifford Chance Luxembourg is pleased to have advised PATRIZIA on the acquisition of the AIRE office building in Luxembourg City. The acquisition increases the number of properties PATRIZIA manages in Luxembourg to 13, comprising total space of around 87,000 sqm, with a total value of approximately EUR 800 million.
Patrizia is pleased to have completed discussions to buy this prime asset on behalf of their clients during this current time of uncertainty for the world economy, highlighting its ability to execute transactions during this period. This asset offers highly stable and secure rental income backed by strong collateral which is even more important in today’s market environment. Patrizia is 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 center and an established hub for major multinational companies in Europe.
The 5,600 sqm 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 sqm of storage space, 43 parking spaces and a garden area. AIRE is located 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 CBD. The area is currently undergoing extensive redevelopment and a new tram line, now free for all users in Luxembourg city, due to be completed by 2021.
The Clifford Chance team was led by Henri d'Ursel and Sébastien Schmitz on the real estate side and by Marc Mehlen and Stefanie Ferring on the financing side. Katia Gauzès led on the corporate aspects and Geoffrey Scardoni on the tax aspects of the transaction. They were supported by a team comprising Alma Custovic, Frédérique Davister, Josselin Badoc, Raphael Theiss, Alexandre Lamarre and Sadan Ramovic.