Axel Bertram, Co-Portfolio Manager of the fund at CREAG, said: “This is a great addition to SSP’s Benelux portfolio at the heart of Europe, where the Luxembourg office market has become one of the top Brexit destinations as a number of UK and US financial institutions relocate there to maintain their presence within the EU. With its modern design, blue-chip tenant and green credentials it ticks all the boxes in terms of the fund’s acquisition criteria.”

The office development is being built to a high specification which includes energy-efficient triple-glazed windows, LED lighting, integrated sun blinds, a rainwater harvesting system and 10 charging stations for electric cars, meriting its internationally recognised BREEAM ‘very good” sustainability certification upon completion.

The development at 60 Rue des Bruyeres, lies on the outskirts of Luxembourg-City and only a few hundred metres away from the booming Cloche d’Or area. Howald is quickly evolving from its traditional industrial and retail roots into a thriving office district, home to schemes such as the modern Cubus buildings and the H2O estate, a 200,000 square-meters mixed use urban redevelopment area. The district has a new train station and plans are in place to connect it to the city’s tram system in 2023.

Ralph Willems, Sr. Acquisition Manager Catella Investment Management Benelux (CIMB): “This is our second acquisition in Luxembourg in a year and demonstrates our commitment to all the countries that make up the Benelux. A good local team with sound market knowledge and understanding of the regulations and culture is essential to making a difference and enables us to identify opportunities more quickly through our network. We are ready to invest more in real estate in Luxembourg.”

The building has a distinctive L-shape with a contemporary architectural design, in keeping with the modern aspect of the area. It has six floors, including one for underground parking with 104 spaces and will be surrounded by green space including a landscaped courtyard and on-site security.

Maastricht-based Catella Investment Management Benelux will be responsible for the asset management of the property on behalf of SSP.

SSP is a joint venture between Catella Real Estate AG (CREAG) and Swiss bank J. Safra Sarasin. The fund invests up to 25 % of its capital in residential assets with the remainder in commercial property and aims specifically to meet the specific needs of institutional investors in Switzerland, Austria and Germany. All assets in the portfolio are required to meet the sustainability standards of Bank J. Safra Sarasin, Switzerland’s leading sustainable private bank.

Catella was advised by Stibbe, EY Drees & Sommer. Inowai acted on behalf of vendor Lafayette.