Irish Investors In Brussels And Berlin
Irish Independent, 21st February 2007Irish investors have embarked on two more major developments in both Brussels and Berlin with a combined investment value in excess of €140m.
Irish-owned Thornsett Group has purchased a high profile site in the "European Quarter" of Brussels with full planning permission for an €80m mixed use development.
The site is located on Rue Belliard, Leopold, Brussels approximately 250 metres from the European Commission and European Parliament buildings. It is overlooked by the Council of Ministers building and the building housing the Irish delegation to the EU.
The completed development will cover 22,500 sq m and will comprise a 150-bedroom 4-star hotel, 108 mainly one- and two-bedroom apartments and 1,500 sq m of retail space with parking for 48 cars. Construction will commence in autumn of this year, with completion scheduled for autumn 2009.
Peter McCarthy, CEO of Thornsett Group, says: "The development will be contemporary and striking and will be a fantastic addition to the surrounding area. We believe that the hotel has wonderful potential due to its central location and the apartment units will appeal equally to owner occupiers as well as investors."
Meanwhile, work has now commenced on a 20-storey office tower, a 212-bedroom hotel and a medical centre complex adjacent to Berlin’s famous Alexander Platz.
This €62m project is being managed by European Property Investments (EPI), an international property investment consultancy with offices in Berlin and Limerick. Known as the Koenigstadt Carree, the development will encompass a total area of over 33,000 sq m, of which around 26,000 sq m will be available for lease.
Contracts are in place with a number of tenants including a 20-year lease with the Accor hotel group as well as one with a major German medical concern.
Total projected rental income from the development is estimated at €4.5m p.a. with a completion date set for November 2008. The initial guaranteed yield will be 7.25%.
An Irish syndicate, made up primarily of investors from Munster, is providing €15.5m, with the remainder being provided by the Deutsche Kredit Bank.