International: Starwood Comes to Luxembourg
- Jul 20, 2015
By Adrian Maties, Associate Editor
Starwood Capital Group is expanding in Europe. The private investment firm announced on Thursday, that Starwood Global Opportunity Fund X has purchased two Class A office buildings in Luxembourg, through a controlled affiliate.
This is Starwood’s first investment in Luxembourg. The company paid a total of €120 million, about $132 million, for the two properties located in the heart of the Cloche D’or office market. The transaction also includes zoned land to develop an additional 32,300 square feet of space.
Although Starwood said that the two buildings offer a total of 283,037 square feet of space, it refused to name them or share any other details about the transaction. However, Caleb Mercer, vice president at Starwood, said in a statement that the office buildings are newly built, have strong tenants and that they are the first properties with Haute Qualité Environnementale certification in the market. HQE is a standard of green building in France. According to www.greenbuildinginfo.eu, there are only two such properties in Luxembourg. They are the Royal 32, at 32 Boulevard Royal, and the SolarWind, at 11-13 Rue de l’Industrie.
“We are excited to be able to enter to the Luxembourg office market at what we believe is an attractive entry point in the occupier cycle,” Zsolt Kohalmi, Starwood’s head of European Acquisitions, said in a statement. “This market already has sub-5 percent vacancy levels, and we believe that as more companies look to expand their operations in Luxembourg and the European Union increases its presence there, we will see further rental growth.”
Rynda Property Investors L.L.P. will manage Starwood’s new Luxembourg properties.