realnews winter 2012

Professional Real estate

SummaryCity Link at a glance

Editorial Our current offers Key figures Our special feature:Focus onCity Link building

Glossary

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

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Contact Us

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Cer t i f ied by

City Link building developed by

AVAILABLE

Q1 2014

Luxembourg – Winter 2012/13

www.realcorp.lu

NEW FACES, NEW SKILLS, NEW STRENGTHS

We are delighted to wel-come Charlotte Liégeois to our team. As Office Manager, she oversees fund and board documentation, office ad-ministration and accounting. Originally from Belgium, she obtained her degree in Mar-

keting—International Trade in Luxembourg. An experienced Communications Officer, she speaks French, English, Spanish and German. She previously worked in Luxembourg for the European Investment Bank Monitoring Division for loans outside Europe, and as Latin America Division Monitoring Officer. She also served in Brussels as the European Commission’s Front Office Manager for Field offices and relations with Representations in Member States.

We also welcome Aline Verdin as an Administrative Assistant to our Agency Team. Another strong communicator, she origi-nally qualified as a teacher of French. In 2010 she achieved a Master’s in Information and Communication, with a spe-cialisation in Public Relations. She also studied English in Cambridge, UK, and speaks Span-ish as well. After interning at Le Soir (Belgium), she worked as a journalist at Talk2u (Luxem-bourg), a Marketing Assistant at Van In Editions (Belgium) and a Communications Officer at Haute Ecole Robert Schuman (Belgium), be-fore joining RealCorp in 2012. Aline helps the Agency Team with marketing, office and busi-ness administration, and client support.

To see the experience and qualifications of

We all look forward to doing business with you in 2013!

Michael ChidiacManaging Director

buoyed by last year’s successes, and positively wiser by our failures, hoping for a smoother ride in the market, but ready for anything!

WHAT’S IN THIS NEWSLETTER

We’re excited to start 2013 with a great selection of buildings To Let and For Sale in Current Offers (pp. 3-10),

At the beginning of the New Year, it’s useful to re-flect not only on the last Quarter’s performance, but also on trends over the whole of the last year. 2012 produced a mixture of good and bad in-dicators for the whole Eurozone and a similarly mixed view for Luxembourg, with a decline in industrial production and investment, but some positive movement in construction, increased inflation and a continuing squeeze on jobs, but some good results in finance and retail. See the overview and analyses in our Key Figures (pp. 11).

SUPPORTING PEOPLE TO NEW HORIZONS

In the last few months we have said goodbye to two people whose expertise and support have been highly valued at RealCorp and by our cli-ents: Greg Sheppard and Kathy Liebl.

RealCorp has grown stronger as a result of their contribution and we support them both in follow-ing their hearts to pursue the different goals that are important to them.

Editorial

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

Non- contractual document

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which is designed to provide light and space on the corner of Rue de la Chapelle and Boulevard de la Foire in the CBD (see Fea-ture pp. 12-13).


Here we are again—entering a New Year full of expectation and resolution,

We look forward to catch-ing up with their news at industry events or over a coffee and a cupcake at Kathy’s Cupcakery!

REALCORP staff, as well as individual contact details, visit our site’s Management

which are highlights from our extensive collection at realcorp.lu/property. In particular, we look forward to introducing you to the new City Link building developed by Py-los Benelux SA,

Team page at: realcorp.lu/about/management-team.

Their well-designed, environmen-tally-friendly projects and their flexible approach have made this developer a pleasure to work with in the past, so contact us without delay if you want new office space from an experienced provider who can listen and adapt to your needs.

www.realcorp.lu

http://kathyscupcakery.com/

http://realcorp.lu/property/

http://realcorp.lu/about/management-team/

http://realcorp.lu/contact/

Current Offers


Cent

ral B

usin

ess D

istri

ct

Non-contractual document

To Let

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Offices1070 sqmNot divisibleAvailable Q2 2013

Offices552 sqmNot divisibleAvailable now

296117

301402

NEW

218996

280749

290115

200981

Offices843 sqmDivisible from 396 sqmAvailable now

Offices2116 sqmNot divisibleAvailability: contact us

Offices5428 sqmDivisible from 978 sqmAvailable Q4 2014



www.realcorp.lu

Current Offers



279979

294681

Airp

ort /

Kirc

hber

g

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Offices 2256 sqmDivisible from 100 sqmAvailable now




222275

207442 / 207435

281967

206239


To Let


Offices313 sqmDivisible from 200 sqm (or 113 sqm)Available now

www.realcorp.lu

Current Offers


Bour

bon /

Gar

e / H

olle

rich


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304810

207633

341165

222621

295855

295372



Offices3675 sqmDivisible from 291 sqmAvailability : contact us


NEW

NEW

NEW

To Let


www.realcorp.lu

Current Offers


Gasp

eric

h / L

eude

lang

e


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299705

306409

ref.: 275211

282812 / 207202

205166

207463


Offices17331sqmDivisible from 700 sqmAvailable now



NEW

NEW

To Let

Offices4471sqmDivisible from 556 sqmAvailable now


www.realcorp.lu

Stra

ssen

/ Be

rtran

ge /C

apel

len

Current Offers



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Offices & Retail2386 sqmDivisible from 580 sqmAvailable now

310334

278229

207027

204944

220008

279629





To Let

www.realcorp.lu

Current Offers



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ESCH

HAMM

CONT

ERN LIV

ANGE

HAMM


339284

221809208778

Offices 245 sqmNot divisibleAvailable now



Offices 140 sqm Divisible from 65 sqmAvailable now

To Let

221644

205218

204087


CONT

ERN


www.realcorp.lu

Current Offers


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Offices152 sqmNot divisibleAvailability: Contact us



338358

309777 306647

For Sale

BETT

EMBO

URG

STAT

ION

CBD

ASPE

LT



+352 26 27 29

Contact us nowto discuss

Office and Retail properties

for sale in the Station (Gare) area.

www.realcorp.lu

Key FiguresEconomic Context

Demand



European stock indices ended the year 2012 on a rather positive trend. The overall GDP growth registered in the last two months of the year helps to encourage optimism in the euro zone. However, household consumption remains limp, mainly because the labour market is still struggling to recover.

In Luxembourg, the decline in industrial production continued over Q3 and Q4. As a result, we expect a sharp drop in investment in industry in Luxembourg for 2013.

One reassuring and promising element is the improved indicators of confidence in construction in Luxembourg for 2013. The financial and retail sectors did show a modest upward trend, but there is some concern for banks and financial sector jobs.

Also, the Luxembourg reforms that came into effect in late 2012, such as new pricing for crèches and service em-ployment cheques, have strongly impacted inflation (+0.2 points) and we expect this to rise to continue with more reforms in 2013.

It is therefore appropriate, for this New Year 2013, to watch this weak recovery with care. It will depend mainly on consumer confidence which currently is not certain. We thus await the indicators of the next two quarters with some apprehension. Summarised from source: STATEC December 2012

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Technical Specifications

This last quarter comprised 42638m ² of offices in 69 transactions.

o Espace Strassen—8134m ² at 2, rue des Primeurs, Strassen o European Investment Bank—4814m ² in the BHK building, Kirchberg o Duo Decad ITS—1223m ² in the Axento building, Kirchberg o BRE Europe—2059m ² in the Vertigo building, in the Cloche d’Or o The Luxembourg Stock Exchange—4635m ² in the Aurora building, CBD

Take-up: Office

The most dynamic sectors in Q4 were CBD, Strassen, Kirchberg, Capellen, Gasperich and Station.This tendency was evident throughout 2012, especially for the CBD, Kirchberg and the Station area, e.g. AXA (CBD) the EIB site (Kirchberg), and Société Générale (Station).


This total is very similar to that of the samequarter in 2011 (42901m² in 70 transactions).The major difference this year is in the Q3 total of 27585m², a 50% drop in take-up comparedto 55415m² in Q3 2011. This Q3 slowdown affected the 2012 annual result of 145939m ², which is about 30000m ² less than the 172762m ² transacted in 2011.The most significant transactions from Q4 are:

www.realcorp.lu

Key FiguresSUPPLY



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0%

2%

4%

6%

8%

10%

12%

14%

Q2/09

Q4/09

Q2/10

Q4/10

Q2/11

Q4/11

Q2/12

Q4/12

€12.00€16.00€20.00€24.00€28.00€32.00€36.00€40.00€44.00

CONTERN

HOWALD

BERTRANGE

HAMM

LEUDELANGE

STRASSEN

CAPELLEN

GARE

MUNSBACH

GASPERICH

AEROPORTCBD

LIMPERT

KIRCHBERG

Rents

Evolution of Luxembourgvacancy rate

Rent rangeper sector

Vacancy


The vacancy rate has declined to 6.68% (versus 7.33% in Q3), but is almost similar to that recorded in Q4 2011 (6.63%).The declining rate is mainly due to the lack of new supply in Q4.2013 could turn out to be a year of decline (or, at worst, stagnation) in the vacancy rate because many buildings scheduled to be delivered this year are already entirely (or almost entirely) rented (e.g. Kremer Clifford Chance in the Charlotte building and The Luxembourg Stock Exchange in the Aurora building, both in the CBD).

Rents did not undergo any major changes in the last quarter of 2012. The trend is towards stagnation in prices, with owners open to the possibility of negotiation regarding freebies and facilities.Only the CBD recorded a transaction of more than 40 €/m² in one of the main arteries of the city: HMS rented 617m ² in the Brasseur Centre building in Grand Rue.

www.realcorp.lu

Key Figures



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KIRCHBERG

CBD STRASSEN

AIRPORT

BERTRANGEGASPERICH

CAPELLEN

STATION

GASPERICH

STRASSEN

LEUDELANGE

ESCH

STATION

HOWALD

BERTRANGE

AEROPORTCONTERN

KIRCHBERG

CBD

Most Dynamic Sectors

2012

2011

Most dynamic sectors in 2012

In 2012, sectors such as Capellen and the Airport were much more dynamic in terms of take-up compared to the year 2011. This can be explained by the arrival on the market of new projects (such as Solarwind) which drew a greater proportionate share of demand. The incentives granted by the owners certainly increased the desirability of areas that previously attracted fewer customers.


Most dynamic sectors in 2011

www.realcorp.lu

Feature



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City Link building developed byRealCorp is pleased to present another innovative project by Pylos Benelux SA. This conveniently-located CBD building designed by Jaspers-Eyers Architects will brighten the corner of Rue de la Chapelle and Boulevard de la Foire in Luxembourg.

Please see the Technical Specifications on the next page for an idea of the very high standard already planned. The developer is always committed to achieving at least BREEAM “Very Good” for each building, but aims to receive the coveted “Excellent” score and is open to discussion with prospective tenants about changes or ad-ditional elements.

Floor Type Sqm

5 Offices 272

4 Offices 675

3 Offices 762

2 Offices 772

1 Offices 728

Ground Offices 553

Lower Ground Offices 73

TOTAL Offices 3835

-1 Archives 256

-2 Parking 31 bays

AVAILABLE

Q1 2014

With wide, tall windows and internal glass panes, it maximises the sense of space for thinking and working. Demolition and construction works began in November 2012 to welcome tenants from January 2014.


City Link has been graded Energy Performance Class A and also has a BREEAM “Very Good” green and sustain-ability certificate. This leading environmental assessment method sets the standard for best practice in sustain-able design and has become the de facto measure of a building’s environmental performance. Find out about BREEAM advantages at realcorp.lu/property/innovative-projects.

www.realcorp.lu

http://realcorp.lu/property/innovative-projects/

Feature



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The Location

Access to motorways about 3km

Findel Airport about 16km

Several bus lines (Reuter station)

Glacis car park

Luxembourg Station about 2km

Technical Specifications

CITY LINK

BELGIUM

FRANCE

GERMANY

Airport

SandweilerBonnevole

Gasperich

Leudelange

Bertrange

Route d’Arlon

Strassen

CapellemLimpertsberg

Kirchberg

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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)

Raised floors finished with quality carpet tilesIdeal modulation of 1,35mTwo elevatorsEntrance hall of double height in natural stoneGround floor ceiling height min 2,70mUpper-floor office ceiling height 2,60mMetallic perforated ceilingCooled ceilings for the officesOffice lighting intensity 500 luxLuminous offices due to large vertical windowsHigh performance triple-glass panesWalls U-value: maximum 0,2Roof U-value: maximum 0.25Automatic external sunscreens on south sideToilets and parking for disabled peopleIced water from combination heat pump and scroll machineExterior stores

This luxury office building’s energy-savingtechniques and materials include:


tel:

tel:

tel:

www.realcorp.lu

Glossary



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1st Demand Bank Guarantee

Indexation

Institutional investors

Rent

Economic rent

Headline rent

Incentives

Presentation rent

Prime rent

Registration

Service charges

Commitment issued by a third party to a financial institution on payment of a certain sum at first request of the creditor, beneficiary of the guarantee, subject to certain agreed conditions (for rental, usually 3 to 6 months’ rent).

Public or private establishments, organizations, financial and mutual institutions which, due to their function and the guarantees they are legally obliged to provide to the public, invest some of the funds they hold in real estate.

A tenant’s regular payment to a landlord for the use of property or land.

Rent calculated after deduction of all incentives.

Rent recorded in the lease contract.

Inducements to future tenants, such as a contribution to fit-out works, a rent-free period, progressive rent, early access to the rented premises, or any combination of these. Incentives may increase depending on lease contract duration and total rented space.

Landlord’s requested rent which is marketed to the Lessee.

Highest value rent recorded of a high quality office unit in the best location during a specified period.

Legal obligation of a tenant to register its lease contract with the competent authority within the three months following the signing of the lease.

Cost of routine maintenance and minor repairs to services that facilitate use of the building in which a premises is situated, e.g. elevator and common area (but not private charges related to local use, e.g. electricity, water, gas).


Binding contractual clause re sequential performance changes in value of the parties’ respective benefits against those of an agreed benchmark, e.g., in Luxembourg, an index based on NCPI C2 cost of living defined by STATEC.

www.realcorp.lu

http://www.statistiques.public.lu/fr/acteurs/statec/index.html

Glossary



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Speculative building

Sub-letting

Sustainable architecture

Efficient building

Green certification

Total stock

Availability

New delivery

Pipeline

Take-up

Vacancy rate

Building planned to be constructed before the developer has found purchasers or investors, or for which the investors have not yet found business tenants.

Letting of all or part of a building or space by a tenant to a third party.

Environmentally conscious architectural design techniques that seek to minimize the negative environmental impact of buildings by enhancing efficiency and moderation in use of materials, energy, and space.

Office building offering productivity gains due to its equipment, networks, communication techniques and material resources.

Certification of the environmental value of renewable energy generated in and by a building. Certifications known in Luxembourg include HQE (France), BREEAM (Great Britain), LEEDS (USA),

Sum of existing space (office, retail and warehouse), both occupied and free.

Total area available on the rental or sales market.

New buildings expected to be delivered within the next quarter, whether already occupied or not.

Total of ongoing projects expected to be delivered in the future (in more than 3 months’ time).

Total stock (office, retail, and warehouse) known to have been let, pre-let, sold or pre-sold during a defined period.

Proportion of vacant premises available for rent or for sale in the total existing stock.


and DGNB (Germany). See realcorp.lu/property/innovative-projects for more info.

www.realcorp.lu

http://realcorp.lu/property/innovative-projects/

realnews winter 2012

Documents

new year

new faces

new skills

new strengthswe

new horizonsin

office manager

luxembourg winter

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