Le Dôme, now in the hands of investment giant, Blackstone
Le Dôme is a 22,000 sq m office building located in Luxembourg city's station district. Blackstone, the American fund that needs no further introduction, carried out this acquisition at the end of 2014; at that time, this was the largest transaction seen in Luxembourg since 2007. When Cushman & Wakefield learnt that Pramerica, the American fund and former owner of the asset, was looking to sell, we immediately thought of Blackstone as a potential purchaser as the building matches its investment criteria perfectly. But work needed to be done to convince Blackstone directors to invest in Luxembourg by providing information on both the stability of the real estate market and the suitability of the asset.and the suitability of the asset.
It’s not that easy to sell an asset when you know that a large proportion of the space may not produce rental revenues for a certain period of time. Our Capital Markets team found itself with a major challenge on its hands – to show that take-up in the station district was higher than the level of vacancy and the speculative pipeline. Cushman & Wakefield rose to the challenge and demonstrated that the rental risk was extremely limited and Blackstone was finally convinced.was finally convinced.
The acquisition of Le Dôme allowed Blackstone to make a prominent entrance into the Luxembourg market. Another fortunate outcome was that the Cushman & Wakefield Capital Markets team forged some excellent relationships which led to another transaction, this time in Belgium via our team in Brussels. Logicor, Blackstone’s European logistics platform, bought a portfolio of four assets totalling 156,000 sq m from AXA REIM. Two of these assets are located opposite Brussels Airport, one in Willebroek and the others in Meer, close to the Dutch border. Logicor currently owns some 9.1 million sq m in 13 countries.