Astro Tower in Brussels has a new owner. Union Investment has acquired the landmark office building for its institutional real estate fund UniInstitutional European Real Estate. The vendor is PATRIZIA AG, who conducted the acquisition, asset management and now sale on behalf of one of its institutional individual mandate clients, South Korean consortium AIP Asset Management. The parties agreed not to disclose details of the purchase price.
At 107 metres high and comprising 30 office storeys, Astro Tower has been a feature of the Brussels skyline since its completion in 1976. After undergoing major refurbishment in 2015/16, it received the highest possible level of energy efficiency certification. The office building is strategically located on the inner ring road, at the intersection of the three main neighbourhoods in Brussels’ central business district, and enjoys excellent public transport links. Astro Tower is fully let to Actiris, a public employment service agency, with 21 years remaining on the lease.
“We are delighted to have secured this extremely sustainable office building for our institutional real estate fund. With its long-term lease and its prime office location in one of Europe’s most important markets, it ticks every box for a core investment,” said Wolfgang Kessler, a member of the management team at Union Investment Institutional Property GmbH. “The fund attracted significant inflows when it recently opened for investment, and this transaction allowed us to promptly invest the money raised in a cash flow generating asset with a very stable value.” The UniInstitutional European Real Estate fund has a volume of EUR 3.7 billion. The fund already holds The Precedent (formerly Le Président) office building and a Motel One hotel in Brussels.
Union Investment was advised on legal and tax aspects of the transaction by Stibbe, and on technical aspects by Bopro. Financial due diligence for Union Investment was conducted by RSM.
