La Française Real Estate Partners International Secures Landmark Transaction in Brussels

La Française Real Estate Partners International, representing a club of Korean and French investors, has acquired the 60% interest of Belfius in the joint venture with AG Real Estate owning the Belgian headquarters of ENGIE. AG Real Estate will continue to manage the asset on behalf of the joint owners. The financing for the transaction is provided by the German Landesbank Helaba.

The asset comprises two buildings, North Light and Pole Star, located in the North Station area of Brussels. Together, the properties make up a high quality “green” office complex of 77,000 m² constructed in 2011 and 2014. The asset is fully leased to ENGIE on leases with unexpired terms of approximately 13 years. The buildings have a number of sustainability features, including optimized geothermal energy, geothermal heating and cooling, solar panels, and a sophisticated climate control system, which have enabled the newest tower of the complex, Pole Star, to achieve a Breeam “Very Good” rating.

The North Station area is experiencing a renaissance, with an influx of new public and private occupiers that include the Flemish Government, Allianz, Beobank, Accenture and Publicis One. The area is benefiting from the consolidation of business activities from smaller offices to larger new developments, and the best public transport connections in the Belgian capital. Real estate investment capital is also flowing into the area with recent significant transactions.
La Française Real Estate Partners International achieved the transaction by bringing together two Korean investors, Samsung Securities and Hyundai Marine & Fire, and a French collective real estate investment vehicle managed by La Française REM. Hyundai Investments Asset Management represented the Korean investors.

David Rendall, Chief Executive Officer of La Française Real Estate Partners International, commented: “This transaction represents multiple firsts for La Française, including its first transaction in Brussels on behalf of two new Korean clients, and its first co-investment from a collective real estate investment vehicle and investors from Korea. This is our fifth transaction on behalf of Korean investors: the total transaction volume amounts to more than €1.3bn across four markets: London, Stuttgart, Paris, and now Brussels. This transaction demonstrates our strong capability in serving Korean clients, with our office in Seoul working closely with teams on the ground in Europe. We are delighted to have secured exposure to such a quality asset leased to a first class tenant and have AG Real Estate as our local partner.”

Amaury de Crombrugghe, Chief Investment Officer of AG Real Estate, added “AGRE is proud to enter into a partnership with such valuable and known partners that can appreciate the quality of the building we developed for ENGIE a few years ago. We trust this is the first joint venture of a long list of other major transactions together with La Française”.

Dirk Vanderschrick, Chief Executive Officer of Belfius insurance, says: “We are pleased to have reached an agreement with “La Française” and her prestigious Korean investors. Belfius insurance will continue to diversify and increase its real estate portfolio”.

Michael Kröger, Head of International Real Estate at Helaba said, “Helaba is pleased, with this transaction, to further strengthen the relationship with La Française. The deal also demonstrates the growing interest of Asian investors in Europe and actually in all our target markets.”

La Francaise was advised by PwC, Linklaters and Cushman & Wakefield (valuation). The transaction was financed by Helaba, advised by JLL and DLA Piper.
AG Real Estate and Belfius were advised by Loyens and Loeff.

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