The Valesco Group has acquired the Finance Tower in Brussels for €1.2bn in one of the largest real estate deals in Europe in recent years.
The London-based investment manager, backed by South Korea’s Meritz Securities, bought the tower from Breevast and ZBG. The price reflects a yield of 4.85%.
To help fund the deal, Valesco secured a €720m senior loan facility from a consortium of four lenders: Allianz, LGIM, SMBC and Bayern LB.
Delivering an annualised rent roll of €59m, 142 metre tall Finance Tower is let on a 15 year, indexed linked lease without breaks to the Régie des Bâtiments, a Belgian Government agency on behalf of the Ministries of Finance and Social Security.
Shiraz Jiwa, founder and chief executive of The Valesco Group, said: “Our forensic approach to real estate risk and our ability to unlock complex structures has enabled us to execute on this landmark and sought-after asset with the backing of a highly distinguished institutional investor in Meritz.
“This transaction continues our strong commitment to the European market in which we have invested €2bn in the last 20 months alone and see substantial potential to further deploy capital to deliver value for our institutional and sovereign investors.
Other recent investments by Valesco include the £250m Cannon Bridge House in London, Microsoft’s UK headquarters in Reading and Amazon’s central European headquarters.
Cushman & Wakefield, Ashurst, PwC and Arcadis advised the buy-side and CBRE, Loyens Loeff, Stibbe and PwC legal advised the sell-side.