RealNews Spring 2012

Professional Real estate

SummaryIndependent BuildingCBD

Editorial Our current offers Key figures Our special feature:

Focus on DEILMANN’S Building

REALCORP Luxembourg22, Avenue Monterey, L-2163 LuxembourgTel: +352 26 27 29

w w w . r e a l c o r p . l u

brought to you by

p.1

p.2

p.3-9

p.12-13

Contact Us

p.1

p.10-11

Luxembourg – Spring 2012

EXCLUSIVITY

designed by wellknown German architect Harald Deilman, which offers 2116sqm of office space, along with terraces, balconies, archives and parking spaces. This and the Current Of-fers highlighted on pp 3-9 are only a sample from our full database.

If your needs differ from these, we may have a solution beyond these pages, so please let us know. You may reply to this email, or bookmark the Contact page of our site for later use, after considering our more extensive Property offer-ings online.

If you need specific expertise other than let-ting or sales, such as Asset Management, Valu-ation and Advisory or Project Management, you may wish to browse our full list of Services and contact directly the team member re-sponsible, whose contact details are listed un-der each Service.

In RealCorp’s view, there is expertise and ex-pertise: there are those who excel at doing things the time-tested, traditional way that has usually worked in the past, and there are some who have the mental agility to apply their years of training and experience in cre-ative ways to produce good results even in a challenging context. We are privileged to have some such minds at RealCorp and we seek opportunities to apply their skills in creating in-vestment and property solutions which others may have failed to see.

If you are struggling in the current climate to sell or to let real estate, or to find a suitable property to let or to buy within your budget, or you have a project management challenge, or a requirement for creative financing, please get in touch and put us to the test!

Michael ChidiacManaging Director

As noted in our Winter Newsletter, the last quar-ter of 2011 produced relatively good results for Luxembourg commercial real estate, consider-ing the uncertain European and global financial context, and we entered the year with confidence and renewed energy due to the expansion of our team and our services.

We are glad to say now that our hope has so far been justified. Alain Dehem, our new Head of Project Management Services, has been busy analysing various development projects on be-half of investors. Our expanded agency team has also been active, letting to diverse companies, including Apex Funds and VW International, and overall producing higher figures than in the same quarter last year.

As usual at this time of the year, we report on MIPIM, one of the major events of the real estate calendar. We recently published on our blog two interviews that we commissioned with key play-ers who attended, Dirk Ruppert of Pramerica and Alex De Witte of Pylos. Their views correspond in several respects: the financial crisis continues to make financing difficult, however not all countries are equally affected; Luxembourg had a strong presence at the show and, despite its small size, is attracting positive interest from investors; and they both are confident that real estate expertise is still in demand. To read the full articles, please visit http://realcorp.lu/blog/ and feel free to tell us whether you agree or disagree in Comments below each post.

In our experience, the Luxembourg market is ac-tive, although there has been the usual dip in fig-ures for Q1. See our Key Figures Analysis for Q1 2012 (p10) for graphs, summaries and examples of Take-up, Vacancy and Rent compared with rel-evant periods in 2011.

This newsletter’s featured property (pp11-13) is an attractive independent building in the CBD,

Editorial

22, Avenue Monterey, L-2163 Luxembourg, Tel: +352 26 27 29 www.realcorp.lu

Non- contractual document

p.2


How is 2012 treating you so far?

To let Type: OfficeArea: 368 sqmDiv.: N/AAvailability: Q3 2012New building, well-located, very high quality fittings, BREEAM certification, flexible floor plan-ning, parking

ref.: 203490

Current Offers


To let Type: OfficeArea: 1072 sqmDiv.: 176 sqmAvailability: ImmediateIn a green setting, close to motorways and train station, these buildings offer several floors for office use, some with terrace.

To let Type: OfficeArea: 2059 sqmDiv.: 396 sqmAvailability: ImmediateHigh-standard building, locat-ed on Bd. Royal. The premises are fully air-conditioned and benefit from good lighting and flexible floor.

To let Type: OfficeArea: 3145 sqmDiv.: 58 sqmAvailability: ImmediateTotally refurbished building with luminous office spaces. The areas are well oganised and offer many possibilities of partitioning.

To letType: RetailArea: 450 sqmDiv.:N/AAvailability: ImmediateTotally-refurbished Period Property, offering a great view on the Place Guillaume. The spaces are majes-tic, full of natural light, with a great ceiling height. Rare opportunity!

Cent

ral B

usin

ess D

istri

ct

ref.: 200981

ref.: 204057 ref.: 203216

ref.: 204504

Non-contractual document

For saleType: OfficeArea: 888 sqmDiv.: 400 sqmAvailability: End 2012This Green building, LEED certified, is located at the border of Luxembourg and Bertrange. The high-stan-dard offices can be easily partitioned.

ref.: 207581

Unique

Opporunity

p.3


To letType: OfficeArea: 748 sqmDiv.: 145 sqmAvailability: Contact usIdeally located in the Bourbon area, this office build-ing has good standards, and has been entirely refur-bished.

ref.: 295372

To letType: RetailArea: 370 sqmDiv.: 52 sqmAvailability: Contact us4 small retail and restaurant spaces that can be eas-ily combined in to 1. Parking available.

Current Offers

ref.: 221686


Bour

bon /

Stat

ion


To let Type: OfficeArea: 1 158 sqmDiv.: 259 sqmAvailability: ImmediateRecent building close to amenities. The 2nd and 3rd floor (each 579m²) are both easy to split and partition. Parking and archive avail-able. ref.: 207633

To let Type: OfficeArea: 275 sqmDiv.: N/AAvailability: ImmediatePrestigious period office build-ing, close to all amenities, spread over two well-lit levels with high ceilings. Its major asset: a garden of 90m ².

To let Type: OfficeArea: 300 sqmDiv.: 150 sqmAvailability: Contact usVery good location, close to the train station, 2 sepa-rate entrances, open space air-conditioned, to be parti-tioned, kitchenette. Parking available.

ref.: 201127

ref.: 295372

NEW To let

Type: OfficeArea: 1275 sqmDiv.: N/AAvailability: ImmediateWithin a calm street but easily accessible from the station, this period property was totally refurbished in 2005. The available space has high ceilings and par-quet. Many parking spaces in the courtyard.

ref.: 290865

NEW

p.4

NEW


To letType: OfficeArea: 610 sqmDiv.: N/AAvailability: ImmediateThis 4-storey building offers bright office spaces with an impressive inner courtyard. A very quiet location close to all amenities.

ref.: 208267

To letType: OfficeArea: 324 sqmDiv.: N/AAvailability: ImmediateThis high standard office building is very well located, and easily partitioned spac-es, with possibility to split as of 10sqm.

Current Offers

ref.: 288982


Gasp

eric

h / H

owal

d / Le

udel

ange


To let Type: OfficeArea: 3280 sqmDiv.: 1400 sqmAvailability: Immediate“This brand new environmen-tal building is located in the commercial and administra-tive area of Leudelange. The spaces are fully air-condi-tioned and easy to partition.”

ref.: 297284

To let Type: OfficeArea: 1549 sqmDiv.: 203 sqmAvailability: ImmediateNew buildings, generous parking allowance, high qual-ity standards, reduced run-ning costs, BREEAM certified.

To let Type: OfficeArea: 554 sqmDiv.: N/A Availability: ImmediateRecent environmental build-ing, in a calm neighbour-hood which makes it a great place to work in. Parking in the courtyard. Close to motor-ways.

ref.: 288666

ref.: 205508

To letType: OfficeArea: 2549 sqmDiv.: 233 sqmAvailability: May 2012Bright and functional office space, divisible from 233sqm, in a modern building of industrial design.

ref.: 205166

AttractiveRent

p.5

NEW

NEW

Last floors

available


Current Offers



To letType: OfficeArea: 2502 sqmDiv.: 355 sqmAvailability: ImmediateRecent and modern building close to Luxembourg Airport (Findel) and its amenities. The high standard surfaces are delivered totally furbished. A canteen-and fitness center are at the disposal of in-house em-ployees.

ref.: 280965

To letType: OfficeArea: 489 sqmDiv.: N/AAvailability: ImmediateModern building located in the heart of the busi-ness district of Kirchberg, near public transports and shops. Office spaces are of good quality and offer standard services.

ref.: 208265

Airp

ort /

Kirc

hber

g

To let Type: OfficeArea: 6700 sqmDiv.: 229 sqmAvailability: ImmediateOffice floors spread over 3 buildings, with good qual-ity services. Ample parking spaces available in the base-ment.

ref.: 203043 / 274533 / 203690

To let Type: OfficeArea: 851 sqmDiv.: 62 sqmAvailability: ImmediateBrand new high standard building close to Airport and its amenities. The lettable areas are full of natural light and can be easily parti-tioned.

ref.: 217333

To let Type: OfficeArea: 2000 sqmDiv.: 420 sqmAvailability: Contact usNear to Auchan mall, this re-furbished building has easy-to-fit and air-conditioned spaces. Excellent parking ratio.

ref.: 294681

To let Type: OfficeArea: 461 sqmDiv.: 83 sqmAvailability: ImmediateBright offices, well finished and partitioned, in a building well situated on the Kirchberg plateau.

ref.: 217233

p.6

NEW

NEW

NEW


To let

Stra

ssen

/ Ca

pelle

n / W

indh

ofCurrent Offers

ref.: 204944



To letType: OfficeArea: 5863 sqmDiv.: 172 sqmAvailability: Q3 2012The SolarWind building is focused on ecology and is the first triple-certified project in the world!It spreads over 10,000sqm and offers wide and luminous offices.

ref.: 207027

To let Type: OfficeArea: 7754 sqmDiv.: 255 sqmAvailability: ImmediateThe West Side Village is spread over 6 buildings and set in a quiet, green surroundings. It offers a safe and pleasant working environment.

ref.: 288215 / 288216 / 288219

To let Type: OfficeArea: 834 sqmDiv.: 337 sqmAvailability: ImmediateThis 2010 building, located in Capellen presents bright of-fice spaces which are easily divisible. The premises will be let entirely partitioned (glass) and cabled (Cat. 7)

ref.: 279629

To let Type: OfficeArea: 828 sqmDiv.: 265 sqmAvailability: Immediate2 office floors ideally fitted out and partitioned. The spaces are full of natural light and air conditioned. Archive and park-ing available.

ref.: 292283

To let Type: OfficeArea: 898 sqmDiv.: 207 sqmAvailability: ImmediateA 3-storey building in Bourmicht area. We offer office space on the ground floor conveniently ar-ranged with large open space, two partitioned offices, kitchen-ette, outdoor parking.

ref.: 220008

p.7

Type: OfficeArea: 2637 sqmDiv.: 400 sqmAvailability: ImmediateThis HQE certified building is an ideal place to work in. Located on Route d’Arlon, just minutes from down-town Luxembourg, Serenity is spread of four buildings of 2600sqm, each connected by one or more bridges. HQE environmental certification ensures relatively low cost of common expenses.

NEW


Bertr

ange

Current Offers



ref.: 207027

To let Type: OfficeArea: 20 502 sqmDiv.: 284 sqmAvailability: ImmediateIn the Bourmicht area, 3 buildings designed to high stan-dards with good modulation, great parking ratio and useful services for its tenants (creche, restaurants…)

ref.: 279649 - 279623 - 278967

To let

Excio: from 558 m2 to 2,266 sqm

Extimus: from 284 m2 to 6,044 sqm

Vitrum: from 620 m2 to 13,326 sqm

ref.: 279649 - 279623 - 278967

p.8


Atrium Business Park

Atrium Business Park is the first business centre in Luxembourg combining office space, shops and areas for social gather-ings.

It offers three catering facilities, a fitness centre, a day care centre for children and building management.

Its original and well-designed concept at-tracts tenants with such well-known names as Citi, Bâloise Assurances, Dexia, Sodexo and AG2R La Mondiale.

Current Offers



p.9

To let

War

ehou

se /

Othe

r

ref.: 205218

To letType: Office & WarehouseArea: 2206 sqmDiv.: 112 sqmAvailability: Contact usWithin the industrial zone of Livange, close the A3 mo-torway, several office and warehouse spaces avail-able, in a good state of use. Numerous external park-ing spaces.

ref.: 287704

To let Type: OfficeArea: 1014 sqmDiv.: 411 sqmAvailability: ImmediateComfortable and secure building ideally located in a green environment close to Kirchberg and Airport;easily accessible by public trans-port.

To let Type: OfficeArea: 1697 sqmDiv.: 237 sqmAvailability: ImmediateRecent building close to the A3 motorways to France. The premises are spread over 7 floors very bright and well soundproofed. Generous parking allowance.

ref.: 221809

To let Type: Office & IndustrialArea: 6500 sqmDiv.: 1000 sqmAvailability: ImmediateIn Sandweiler and Mensdorf, easily accessible from the airport and motorways, warehouse fully adjustable and available at a very attractive rent.

ref.: 205830/206988

Type: OfficeArea: 245 sqmDiv.: N/AAvailability: ImmediateIdeally located between the CBD and the Airport, this building of recent construction presents well-ar-ranged office space which is easily divisible. Archives and parking available.

ref.: 278100


• Q1 2012 Take-up (24866sqm) was similar to that of Q1 2011 (25876sqm, although the number of transactions differed (54 in 2012 compared with 34 in 2011). This Take-up is significantly lower than that of Q4 2011, due to the normal pattern of tenants taking decisions in Q1 or Q3 that are acted on in the following quarter.

• There was a slight drop in the percentage of “direct” transactions (Landlord to Tenant transac-

tions). In Q1 2012, 12 transactions formed 22% of Take-up, whereas, in Q1 2011, 12 operations con-tributed 35% of Take-up. In total in 2011, 76 direct transactions constituted 30% of the total Take-up)

Key Figures



Take-up Q1 2012 / Transactions per activity / Transactions per area

p.10

Evolution Q1 Take - up since 2009

Transaction per activity Transaction per sector

COM INS

TRS

FASHION

IND

OTHERS

IT & TELECOM

BEAUTY & HEALTH

BTP

SRV for IND

SRV for CIE

BFI

KIRCHBERG

LIVANGE MUNSBACH CAPELLEN LIMPERTSBERG

STRASSEN AIRPORT

OTHER

LEUDELANGE

STATION

ESCH

HOWALD WINDHOF

CBD

0

5000

10000

15000

20000

25000

30000

2009 2010 2011 2012


• The most dynamic companies on the real estate market are still the Financial sector ones (32%), followed by Services to Companies (30%) and to Consumers (11%). Public Buildings and Works (BTP) (9.3%) and Communications (7%) are also active.

• For Q1 2012—and this is unusual enough to be highlighted—the most dynamic areas are in the close periphery of Luxembourg, but exclude the CBD. Locations like Kirchberg registered no trans-actions this quarter.

The average rent decreased by 2€ (now 25.81€/sqm). This is because the biggest transactions regis-tered were made in buildings located in the close periphery of Luxembourg City where the rents are lower:

•SEBtook500sqmmoreinHesperange(theyhadinitiallytaken3464sqminthesamebuildinginthe last quarter)•BonnSchmittandPartnerstook2614sqminHesperangeaswell•Cetreltook1500sqminLeudelange

Key Figures



Rent per sector

p.11


12 16 20 24 28 32 36 40 44

CONTERN

HAMM

HOWALD

BERTRANGE

CAPELLEN

GARE

MUNSBACH

LEUDELANGE

STRASSEN

GASPERICH

AEROPORT

LIMPERT

CBD

KIRCHBERG

0% 2% 4% 6% 8%

10% 12% 14%

1 2 3 4 5 6 7 8 9 10 11 12 13

Vacancy rateThe vacancy rate in Q1 of this year increased slightly to 6.9%, for two reasons:

• There was only one building delivery (Elise 6500sqm in Leudelange)

• Second hand office stock volume rose, no-tably due to some companies moving for more space, usually to new buildings.

Vacancy rate

2009 2010 2011 2012

€

The CBD remains an attractive area, even though the rents are the highest (30€/sqm for modern buildings and40€ for brand new ones).

•BakerandMcKenzietook1828sqminBoulevardRoosevelt.•Rapegotook2200sqmintheStargatebuilding.

Feature



AVAILABLE

p.12

32-34 Boulevard Grande Duchesse Charlotte

The Location

This independent building has original architecture typical of German architect Harald Deilmann work. Deilmann is known for his work on public buildings, including opera houses and museums. The property makes a refreshing modern statement in the surrounding cityscape.

Each floor has a different configuration, with convenient options for various office arrangements, as in the layout for the first floor in the example below. Terraces on the second floor, and balconies all around the building on every floor, offer opportunities for fresh air and views for all occupants.The lower levels present several areas for Archives and undercover parking. The building has two external visitors’ car parking spaces.

The building is conveniently located in the heart of the Luxembourg CBD, close to the Embassies area and in the vicinity of such major companies as Edmond de Rothschild Private Bank, Thomson Reuters, Orangefield Trust and Kramer Clifford Chance.

Parking is available at the building for staff and visitors. It is 2.5km from the motorways and 16km from the Airport.

The building can also be reached by public transport. It is approximately150m from the Wampach bus stop (bus line 15) and 1km from the train station.


RealCorp is pleased to offer to let this attractive CBD office building.

Feature



p.13


Floor Type Sqm

3

2

1

Ground

-1

-1

-2

-2

-3

-3

Exterior

Total

Offices

Offices

Offices

Offices

Offices

Archives

Parking

Archives

Parking

Archives

Parking

223

324

455.22

525

589.6

118.2

16 spaces

144.9

14 spaces

143.5

2 spaces

2523

Technical Specifications•Elevators

•Airconditioning

•Doubleglazing

•Openingwindows

•Existingwiring

•Receptioninthelobbyofthebuilding

•Floorboxes

•Falseceiling

•Visitorparkingoutsidethebuilding

•UninterruptedPowerSupplyprovidedbyNoBreakdiesel

Tehdi-Edouard Babigeon Head of letting & sales

[email protected]: +352 26 27 29 22 (Direct)

Jennifer VenneAgency & research

[email protected] Tel: +352 26 27 29 34 (Direct)

Have a project, need advice or simply wish to visit ?

Contact us

Aurélie Vanaudenhoven Account manager

[email protected] Tel: +352 26 27 29 24 (Direct)

Documents

RealNews Spring 2012