Prosecutors investigate the EU’s executive branch over the sale of buildings to Belgium 2 years ago

European prosecutors have launched an investigation into the European Commission’s recent sale of 23 buildings to Belgium, a transaction valued at approximately €900 million ($1 billion), officials confirmed on Thursday.

The property deal, finalized earlier this year, was intended to help transform Brussels’ European quarter “into a modern, attractive and greener area,” according to the Commission. Belgium’s sovereign wealth fund SFPIM purchased the buildings as part of the country’s broader urban renewal strategy for its capital city, which has served as the de facto capital of the European Union for decades.

In response to news of the investigation, the Commission issued a statement defending the transaction. “The sale of the buildings followed established procedures and protocols, and we are confident that the process was conducted in a compliant manner,” the EU executive branch said. Officials emphasized their commitment to transparency and pledged full cooperation with the European Public Prosecutor’s Office (EPPO), the independent body responsible for investigating crimes against the EU’s financial interests.

The Commission declined to provide specific details about the nature of the investigation or what might have prompted prosecutors to examine the property sale.

The EPPO, established in 2021 to investigate fraud and corruption involving EU funds, has similarly remained tight-lipped about the specifics. Spokesperson Lidija Globokar would only confirm that prosecutors were “conducting evidence-collecting activities in an ongoing investigation,” citing concerns about potentially jeopardizing the investigation and its outcome.

According to reporting by the Financial Times, Belgian police conducted searches at several Commission premises on Thursday, including its budget department. The newspaper cited “two people familiar with the operation” but did not elaborate on what investigators might have been seeking.

The European Commission, headquartered in Brussels, is the EU’s powerful executive arm responsible for proposing legislation, implementing decisions, and managing day-to-day business of the 27-member bloc. With more than 30,000 employees, the Commission maintains an extensive real estate portfolio in the Belgian capital. Even after this significant property sale, the institution still owns approximately 60 buildings in Brussels.

Real estate transactions involving public institutions often face heightened scrutiny due to their financial scale and potential impact on public resources. The €900 million transaction represents a significant investment for Belgium and a major asset transfer for the European Commission.

Brussels’ European quarter, where most EU institutions are concentrated, has undergone considerable development since Belgium became a founding member of what would become the European Union in the 1950s. Urban planners and local officials have long sought to balance the district’s institutional character with efforts to create a more vibrant, sustainable urban environment.

Property management has been an ongoing challenge for EU institutions, which must balance cost considerations, security requirements, and evolving workspace needs while managing taxpayer resources responsibly. The Commission regularly reviews its real estate strategy, sometimes opting to sell older buildings while developing or acquiring more modern facilities.

The investigation comes at a sensitive time for the EU, with a new Commission taking office later this year following European Parliament elections in June. The incoming leadership will likely face questions about property management strategies and transparency in such high-value transactions.

Belgian authorities have not yet issued any public statement regarding the investigation or potential concerns about the property deal.