Fidelity International鈥檚 core, euro-zone-focused real estate fund has acquired an office asset in Luxemburg for 鈧�100m.
The investment manager said Fidelity Eurozone Select Real Estate鈥檚 acquisition marks the fund鈥檚 first exposure to the market as it seeks to gain exposure to a highly liquid micro-location that is experiencing strong growth.
The asset was sourced off-market from ATOZ and structured as a sale and leaseback.
The fully let asset, located close to Luxemburg International Airport, was completed in 2000 and has recently undergone an extensive capital investment programme.
As previously reported, new investors from France, Germany, Ireland and Switzerland joined the fund.
Aymeric de S茅r茅sin, the portfolio manager at Fidelity International, said: 鈥淭he acquisition marks a significant drawdown of client capital after our successful 鈧�300m capital raising event last year, meaning just 鈧�85m remains to be invested.鈥�
S茅r茅sin added that Luxemburg is an attractive market, offering good and solid fundamentals with a sizeable existing modern office stock, backed by a significant and sustainable letting demand.
鈥滾uxembourg is a market where we wish to increase our exposure, not only within the office sector but also within the retail sector. We believe in the long-term growth of the economy and, as worker numbers increase, this will create a need for office stock over the short to medium term.鈥�
