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MECHELEN, BE-One of Europe’s largest REITs, Confinimmo, has paid euro 54.7 million ($64 million) for an office block here, reflecting an initial gross rental yield of 7.12%. The block is located next to the station at Mechelen, a city located half way between the two main office markets of Brussels and Antwerp.

The asset comprises 28,711 sm of office, 2,073 sm of archives space and 402 parking spaces. The majority of the office space, more than 80%, is let to different tenants for lease terms no less than nine years. The longest lease of 18 years is with OVAM (Public Waste Agency of Flanders), which occupies more than 50% of the office component.

A statement from the board says this acquisition fits in with Cofinimmo’s investment strategy, which targets assets let on long-term leases to top-quality tenants. The buy allows the Group to “invest capital under attractive financial conditions, to extend the average firm duration of its lease portfolio and to reinforce its position in optimal locations,” the statement concludes.

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