International real estate consultant CBRE has advised Breevast, the Dutch real estate developer, on the sale of the Brussels Finance Tower to Meritz Securities Co., Ltd, a Korea-based securities and financial service company, the Valesco Group ("Valesco"), the London headquartered real estate investment manager and AIP Asset Management (“AIP”), the Seoul headquartered asset manager.
Meritz Securities Co., Ltd acquires the office complex “Finance Tower”, located along the Kruidtuinlaan in Brussels. The Finance Tower was previously owned by Breevast, the seller, who renovated the skyscraper completely and leased the tower to the Belgian state.
According to Alexander van Ravels, head of CBRE Capital Markets:
The sale of the Finance Tower is the largest single asset deal in Belgium ever, and the largest property investment deal in Europe in 2019. The South-Korean investors pay approximately 1.2 billion € for the majestic office tower in the European Capital, Brussels.
The office tower is leased for another 15 years to the Belgian State until December 2034. The tower’s main occupier is the Federal Public Service Finance, but a number of other federal government departments and minister cabinets also reside in the tower.
The Finance Tower is a landmark office complex in Brussels, and measures 142,176 m² of offices, 43,578 m² of archives and 712 parking units. With its 145 m roof height, the Finance Tower is the second tallest building in Belgium. With its 220,000 m² gross space size, it is one of the biggest buildings in Belgium.
The Property is located in the heart of the Brussels’ Central Business District (CBD), the Capital of Europe. The Finance Tower is the largest and most iconic building of the Brussels City-Centre office district, with an exceptional position along the inner ring road at walking distance of both train and subway stations.
The office tower was fully refurbished by Breevast BV in 2005-2008 with the highest technical specifications and has been awarded with a BREEAM Good certificate.
Throughout the operation, Breevast BV was advised by CBRE, Loyens & Loeff, Stibbe and PwC. Meritz Securities Co., Ltd was assisted by investment and asset managers Valesco and AIP, and advised by Ashurst and Arcadis.
South-Korean investors extremely keen on European and Belgian real estate
Low domestic yields and positive hedging environments were identified as key motivators for Korean investors’ purchasing activity. In Europe’s gateway cities, they look for buildings that are well-managed, fully leased to high-credit tenants and at desirable locations.
According to Alexander van Ravels, Senior Director and head of Capital Markets at CBRE:
Since 2016, South Korean investors have invested 2,86 billion € in Belgium. It concerns 11 investment deals, all office buildings in or around Brussels, the Capital of Belgium and Europe. The common denominator in all transactions is inflation-indexed long-term leases, in most cases with government bodies. Besides the Finance Tower, other large investment deals are the acquisition of Egmont I & II (Brussels, 371 million €), Engie Towers (Brussels, 368 million €) and Meeûs 8 (Brussels, 205 million €).
Brussels is regarded as one of the most stable office markets in the world. The main reason for its acyclical nature is the strong presence of public sector bodies. Next to housing the European institutions and the NATO, Brussels also serves as the home turf for both the Belgian national government and most of the regional governments.
Typically, government bodies agree terms on long-term leases, ranging from typically 15 or 18 years to sometimes 25 years, without break options and fully indexed to inflation. These investment products are highly appreciated by long-term investors that require stable long-term cash returns such as insurance companies and pension funds. Long-term leases reduce the risk of vacancy, and do not require active property management locally.
About Breevast B.V.
The real estate company Breevast B.V. was established in 1963 in the Netherlands. It develops, builds and manages commercial and residential real estate in Western and Central Europe, as well as in North America. Breevast seeks to spread risks by distributing its portfolio across various sectors and countries. The company is privately owned and has its corporate headquarters in Amsterdam, the Netherlands, and has offices in Brussels, Antwerp, Warsaw, Luxembourg, and Newport Beach.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2019 revenue). The company has more than 100,000 employees (excluding affiliates) and serves real estate investors and occupiers through more than 530 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services.
In Belgium, more than 500 employees, operating from our offices in Brussels, Antwerp and Diegem, have been advising our clients on commercial real estate for more than 50 years.
