La Française Real Estate Managers (REM), a subsidiary of the La Française Group, has successfully concluded the refinancing of the DSQUARE office building within the mixed-use “Cloche d’Or” complex in Luxembourg. The property spans a total area of 30,000 m² and is positioned as a high-quality Class A office building. It is located in one of the city's most prominent mixed-use areas.
Completed in 2019, the sixteen-storey building is fully leased to Deloitte Luxembourg. The existing lease agreement is considered long-term and has a remaining term of 7.5 years. La Française REM acted on behalf of two institutional investors for whom the company is responsible for asset management. The successful structuring of the refinancing secures the continuation of the investment strategy for these clients.
Extension of loan term without additional capital
A key outcome of the negotiations is the successful extension of the loan term by three years. This significant condition was achieved without the need for additional capital participation from the involved investors. The financing partner for this refinancing was Helaba Landesbank Hessen-Thüringen, which structured and provided the transaction.
David Rendall, Deputy Managing Director of La Française REM, commented on the successful completion of the refinancing. He stated that the achieved refinancing terms reflected the long-term quality of the DSQUARE property and the tenant's solid fundamentals. Furthermore, he noted that it demonstrated the effective implementation of the asset management strategy and showcased the financial market's confidence in the property and its underlying values.
Strategic relevance in the Luxembourg market
The successful completion of this refinancing underscores the stability of value for established real estate projects in a core European market like Luxembourg. It also demonstrates the ability to secure advantageous financing conditions for high-quality properties with solid tenant structures and long lease terms, even amidst current dynamic market conditions.
The “Cloche d’Or” complex in Luxembourg, where DSQUARE is located, is considered a strategically important location for renowned companies and institutions. The presence of a long-term tenant such as Deloitte Luxembourg in a Class A building reinforces the appeal of the DSQUARE building as a stable and value-retaining investment. The low vacancy rate and high demand for premium office space in this location contribute to the robustness of the investment.
