Belgium buys 23 office buildings from the European Commission for almost one billion euros

The European Commission, which plans to reduce its office space by 25% by 2030, has sold 23 buildings to the Belgian government for housing, businesses and shops, as part of the transformation of the European quarter in Brussels, reports France Presse, reports Agerpres.

Considering the increasing trend of telecommuting following the COVID-19 pandemic, the European Commission aims to “align its office needs with the new hybrid way of working” and save money in the process.

The transaction was valued at 900 million euros.

The two sides jointly announced on Monday the “finalization of an agreement” under which Societe federale de participations et d’investissements (SFPIM, the financial arm of the federal government) becomes the owner of these buildings before handing them over to developers.

“SFPIM will incorporate them into its portfolio. They will be renovated to make them more sustainable and will be put back on the market for mixed use (businesses, housing, services)”, a joint press release states.

Also, the European executive, which has been based in the Belgian capital for 60 years and has thousands of employees here, wants to “transform the European quarter into a modern, attractive and greener area, where office buildings will coexist harmoniously with houses, shops and leisure spaces”, adds the release.

Twenty-one of the 23 buildings sold – representing a total area of ​​300,000 m2 – are located near the Schuman roundabout and Berlaymont, the building where the Commission is based.

They will be transformed by the Belgian fund Cityforward, created by SFPIM and the insurer Ethias, to welcome the first occupants in 2028, with the “long-term” aim of “doubling the number of families in the heart of the European quarter”. There will be “70% sustainable offices and 30% shops, public equipment and, above all, housing”, according to the financial arm of the Belgian government.

Two other buildings, located in the Brussels commune of Auderghem, a few kilometers away, will be managed by another pair of companies, including the Vicinity Affordable Housing Fund, which presents itself as the first real estate investment fund dedicated to affordable and sustainable housing in Belgium.

The vast neighborhood transformation project, presented last year by the Brussels region, also includes plans to plant more public spaces and limit transit car traffic.