The acquisition marks M&G’s first purchase in the country. Bought in-line with its €2.2 billion pan-European growth strategy, the 12,412-square metre ‘Di Vinci’ building sits in Luxembourg’s airport district.
The five-storey building currently has long-term tenants including the State of Luxembourg, Bain Capital and Alsa.
Constructed in 2004, the property has a gym and car parking, and holds a Building Research Establishment Environmental Assessment rating of ‘very good’.
M&G’s core property fund has deployed about €700 million in the past year with acquisitions made in Denmark, France, Germany, Italy and Portugal.
David Jackson, fund manager at M&G RE, said: “With office employment growth and gross domestic product likely to be one of the strongest in Europe over the next five years in the city, Luxembourg is a strong financial centre and obvious investment choice as we continue to bolster our presence in continental Europe.”
Union Investment was advised by JLL, PwC and Allen & Overy.