Cording Real Estate Group and Warburg-HIH Invest Real Estate have bought the first property for their Benelux Commercial Real Estate Fund.

The office property, De Nieuwe Boompjes in Rotterdam, was acquired for €20.2m in an off-market transaction from Amsterdam-based development company, Cradle of Development.

The 8,930sqm building was refurbished in 2016 and is almost fully let to small-scale tenants.

René de Heus, director of investment for Benelux at Cording, said: “The listed character of the building with many details dating back to the original construction year and the special fit-out of both common and tenant space makes this asset a niche product for tenants, which are seeking a working environment beyond the usual standards and configurations.

“The small-scale leases provide granularly stable rental incomes.”

The Benelux Commercial Real Estate Fund, an open-ended special real estate fund, invests in office and retail property in the Netherlands, Belgium and Luxembourg for Heleba Invest and SV SparkassenVersicherung.

The fund, launched late year, has €300m of capital to invest, including €300m in equity, over the next two years. The vehicle, which has a 10-year life, is targeting a net distribution yield of 4%.