The government has bought a building from the "Domaines Vinsmoselle" cooperative for the sum of 8.5 million euros.

The Luxembourg government has purchased the "Caves du Sud" winery in Remerschen to repurpose the land for affordable housing.

The development plan foresees the construction of 45 homes, built by the public construction company SNHBM.

The buildings are classified as historical monuments, which will be taken into account, the housing ministry confirmed on Monday. The wine bar is to remain open for business.

The transaction is part of the government's strategy to buy land and it is complementary to the so-called VEFA, or off-plan, programme, which will purchase 800 homes for 480 million from 2024 to 2027.