Brussels sells €8 million building on Rue Royale to property developer for new hotel

The City of Brussels social welfare organisation CPAS has sold an outdated building on Rue Royale for €8.25 million, planning to use the profits for the renovation of social housing.

CPAS chairman David Weytsman (MR) said that the sale was part of a broader rationalisation of the property portfolio.

“The aim of this sale is to try to make better use of our assets and to present, as soon as possible, an investment plan aimed at renovating part of our property portfolio,” said Weytsman.

“In this case, what we’re trying to do is do more with less and therefore refocus a large part of our services at the headquarters on Rue Haute, where the CPAS’s frontline services will be based."

The building on Rue Royale dates back to the 1970s and covers 5,500m². The now vacant corner building served in its early years as a shelter for the homeless in collaboration with Samusocial.

Weytsman said that the property’s new owners planned to convert it into a hotel.

The sale price is roughly in line with the asking price when it was listed a few months ago. The Brussels CPAS bought the property in 2011 for €5 million and is therefore making a profit of about 60%.

Using the funds from its sale, the CPAS hopes to renovate the 2,300 homes owned by the centre, some of which are in poor condition.

These renovations will be funded by a budget expected to reach €20 million, supplemented by proceeds from other sales.

“We will identify the buildings requiring major renovation and we will ask ourselves whether we are able to renovate them and whether they are necessary for the CPAS,” Weytsman added.

“Depending on that, we will decide whether to keep them or sell them. And if we sell them, the proceeds from the sale will be reinvested into this investment fund.

"Currently, the CPAS’s housing is in poorer condition than other social housing companies."

Weytsman said that in addition to the €20 million, further funding will be provided by partners.

“This is an investment plan that could reach up to €100 million over the next 10 years,” he added.