] South Korean pension manager Public Officials Benefit Association has been named preferred bidder for a 130 billion won (US$117 million) building complex in Belgium, Maeil Business News reported on March 29.
The public fund for government employees has acquired the long-term leasehold from listed Belgium REIT Befimmo by investing 74 billion won while the rest 56 billion won will be financed by local financial institutions.
The historical Grade A, multi-tenant office complex comprises 22,307 square meters and is split between offices, meeting rooms, retail and archive space. It is located in Brussels CBD-submarket, Pentagon City Centre, close to the Belgian Royal Palace and Central Station.
The investment period will be six years and the annual target return is 5 percent. The fund aims to complete the deal within the month.
The Brederode is an office complex consisting of three six-story buildings that are currently occupied by six companies, including Linklasters, one of the UK’s largest law firms.
The report said the remaining lease period of the tenants is more than 13 years on average and stable rental income is expected as the vacancy rate is relatively low.
“After the Brexit decision last year, we have been paying close attention to the European real estate market. We have decided to focus on investing in medium-sized office buildings in the 100-200 billion won range as they are less sensitive to economic conditions,” a POBA official was quoted as saying.
By Alex Lee (email@example.com