30,000 m² office sale in Luxembourg

OFFICES
Tim Harrup

The imoprtant Luxembourg market is continuing to be active during these troubled times. Crystal Park, a 30,000 m² building which was developed by AG Real Estate to house the headquarters of PwC Luxembourg, the sole occupant of the building, has changed hands, moving from AG Real Estate to Société Générale Assurances. The build-to-suit project, which was designed to offer the most advanced technical performance and certified BREEAM Excellent, was completed at the end of 2014. The building consists of six floors with an atrium, reception areas for external visitors at ground floor level, along with the PwC Academy and various catering outlets. The upper floors are allocated to offices and open spaces. The building also comprises an auditorium, a sports hall and fitness room, together with car parking on two levels.The financial details of the transaction have been kept confidential by the parties.

Strategy

This transaction forms part of the latest strategic thinking of AG Real Estate, which, in January 2017, entered into a partnership with Société Générale Assurances, the insurance branch of the Société Générale group. This partnership saw the insurer enter into the shareholding of B.G.1 with a 50% stake. Since then, AG Real Estate has continued to provide the Asset and Fund Management and will continue to do so in the future.

Current market conditions have prompted the shareholders of AG Real Estate to adjust their strategy, which is what has led to the anticipated sale of the remaining shares in B.G.1. to Société Générale Assurances. Amaury de Crombrugghe, Chief Investment Officer of AG Real Estate explains: “As AG Insurance's property manager, AG Real Estate must manage its portfolio in an optimal way. In order to do so, it needs to rotate some assets. The Crystal Park building is a high-quality, hyper-localised asset. These are strengths that give it exceptional appeal on the Luxembourg market. We are pleased to have been able to sell our shares in this asset to our partner Société Générale Assurances”.

Tatiana Posa, Senior Transaction Manager at AG Real Estate also talks of strategy and of the company ‘adapting its tactical investment decisions in order to respond as quickly as possible to the needs of our shareholder’. And Yann Briand, Real Estate Director of Société Générale Assurances adds: “The completion of this transaction within a very short timeframe reflects the strategy of Société Générale Assurances which, as a responsible investor, aims to ease a swift transition by acquiring assets that meet the highest environmental standards”.

Details of another office building in Luxembourg, but this time where the interest lies in the construction characteristics of the building itself, rather than in the transacting parties, will follow tomorrow on www.pro-realestate.be. Nevertheless, Luxembourg is Luxembourg, and an insurance company is once again involved!