Government buildings
A project worth almost 2 billion euros is intended to transform decrepit European office buildings into sustainable offices, shops, public facilities and homes. The Belgian government participates, because there was not much interest from the private sector.
The European Commission is selling a total portfolio of 23 buildings in the European Quarter to the Belgian federal private equity and investment company SFPIM. The latter in turn gives 21 buildings on long lease for around 880 million to the Belgian Cityforward fund, which was founded by the SFPIM and Ethias and is managed by their Brussels-Antwerp partner Whitewood. The aim is to transform the buildings into a sustainable and dynamic district.
In concrete terms, the 21 buildings, with a total area of 300,000 square meters, will be transformed into 70 percent sustainable offices and 30 percent shops, public facilities and especially homes. Thanks to this project, approximately 750 to 800 new apartments will be added to the district. The intention is that the first new residents and office workers will move in from 2028.
The total costs of the transformation that Whitewood wants to carry out on the buildings are estimated at the same order of magnitude as that of the purchase, bringing the total investment to almost 2 billion euros.
“The foundations have been laid to become an example of a diversified urban environment in the near future where sustainable workplaces find their place, in a liveable neighborhood where life is good,” says Frédéric Van der Planken, CEO of Whitewood and manager of Cityforward .
The two other buildings have been sold to Vicinity Affordable Housing Fund and neighborhood developer Matexi, who will redevelop them into sustainable and affordable rental and purchase apartments.
For the time being, the operation is being financed almost exclusively with public funds. Initially, it was the intention that a large part of the money would be raised from investors, but they were no longer interested in investing in real estate due to the increased interest rates. AG Real Estate, Belgium’s largest real estate player, announced two months ago that it would not participate.
