Nextensa €120.0m transaction in Cloche D'or

Nextensa signed the largest office transaction to date in Luxembourg at €120.0m for the Rock. 30% of the asset had already been leased to Citi Bank and the other 70% will be taken by the unknown owner-occupier of this deal. The building offers 9,492 sqm or €12,642 per sqm, of high-end space spread over ten floors. The delivery of the building is schedule for mid-2027. Nextensa already obtained a permit and some of the ground works already took place. Construction will accelerate as of 2Q26, as of which margin will be recognised via % of completion (equity method - 50% JV). The remaining equity cashout is limited as this is a forward funding deal with bank project financing. After management comments during FY25 results, our model already banked on an acceleration in Cloche D'or over FY26/27 to counter the P&L gap from the delayed permit on T&T, which has been obtained in the past month. We reiterate our HOLD recommendation at an unchanged target price. While we continue to view the shares as undervalued on a long-term basis, the development pipeline is heavily back-end loaded which drives our recommendation.