NSI this week announced its decision to discontinue the Well House office development in Amsterdam, highlighting the increasingly selective approach investors are taking towards new office projects across Europe.
The Dutch office investor said it will cancel the planned development in Amsterdam’s Zuidas district after an extensive feasibility review concluded that the project no longer met the company’s investment criteria. As a result, NSI expects to record a non-cash impairment of €9.6m in its first-half 2026 results, reflecting development costs capitalised to date.
Well House had been envisioned as a highly sustainable office building adjacent to NSI’s existing Vivaldi I and II assets. However, despite continued demand for premium, environmentally certified office space in Amsterdam, sharply higher construction costs significantly weakened the project’s economics, NSI said. The firm also evaluated smaller-scale alternatives but determined that these options failed to generate sufficient risk-adjusted returns relative to the development, leasing and execution risks involved.
The decision stands in contrast to a more expansionary approach elsewhere in Europe and underscores the diverging dynamics shaping the office sector. While rising construction costs continue to challenge new developments, investors remain willing to back high-quality projects in locations supported by strong long-term fundamentals.
In Barcelona, Stoneweg and Nova Providence Capital have acquired a development site in the city’s 22@ innovation district, where they plan to develop an 18,500sqm Grade-A office tower with a gross development value of €50m. Scheduled for completion in 2029, the project is supported by strong occupier demand, a limited supply of prime office space and vacancy rates below 3% in the central business district.
“The combination of constrained supply, limited new development and growing demand for high-quality workspace is creating a compelling opportunity for experienced investors to deliver a differentiated product in attractive locations that are benefitting most from these tailwinds,” said Jaume Sabater, co-founder and CEO of Stoneweg.
| Recently completed deals | |||||||
|---|---|---|---|---|---|---|---|
| Asset | Asset type | Location | Buyer | Vendor | Size | Price (mln) | Key facts |
| Bravo portfolio | living | Spain | Nuveen | King Street | 3,300 beds | €330 | The portfolio comprises around 1,800 operational beds across Madrid, Granada, Salamanca and Murcia, alongside a further 1,500 beds under development in Zaragoza, Valencia and Seville. |
| Pulse portfolio | retail | the Netherlands | Orange Capital Partners, unnamed institutional investor | Harbert Management Corporation | 74,000m2 | €215 | The deal represents the largest retail transaction in the Netherlands over the past six years. |
| 53.5% of Hotei Properties | corporate | Spain | Sancus Capital | Castlelake | NA | €199 | The operation includes an offer on the same terms to the remaining shareholders to acquire up to 100% of the share capital. |
| Nômade Temple Madrid | hotel | Madrid | Nômade People | Hotei Properties Group SOCIMI | 93 rooms | €105 | The hotel is set to open later this year following a renovation. |
| RBA office tower | office | Barcelona | Grupo Icyesa | RBA | 20,000m2 | €100 | The asset was sold in a partial sale-and-leaseback deal. |
| The Muse | office | Brussels | Easternmed Real Estate Capital | Immobel | 10,500m2 | €100 | The asset at Rue d’Arlon 75 in Brussels’ European Quarter is let to the European Defence Agency (EDA) on a 15-year lease. |
| Espace Shopping Hydrion | retail | Arlon, Belgium | Ascencio | NA | 33,000m2 | €65 | The fully-let asset includes over 40 stores. |
| 20 properties | mixed | Sweden | Episurf | NEEL Capital Partners, Virbo Invest AB, Polberga AB, Magnus Johansson and Robert Pejic | 52,000m2 | €59 | The assets are primarily located in Oskarshamn with additional properties in Västervik, Mönsterås and Hultsfred. |
| rental multifamily project | living | Gothenburg | Folksam | Skanska | 10,100m2 | €45.5 (SEK500) | The development, situated in Gothenburg’s Sankt Jörgens Park on Hisingen, comprises 142 rental apartments. |
| Novotel Tower Bridge | hotel | London | Generali Real Estate | Ares Real Estate, EQ Group | 203 rooms | NA | The deal marks the firm’s first foray into the UK hospitality market. |
| two build-to-rent assets | living | Watford and Barking, UK | RLAM | Weston Homes | 377homes | NA | Both new assets will be operated by ProperTies Living, RLAM’s residential management business. |
| apartment complex | living | Amsterdam | Altera | UBA Projectontwikkeling | 152 apartments | NA | The project is expected to be completed in 2029. |
| VDH Cooling logistics property | logistics | Rotterdam | Deka Immobilien | Melcombe Partners and GIC | 29,700m2 | NA | The asset is a state-of-the-art, fully let cold-storage logistics centre. |
| resi portfolio | living | Germany | ZAGA Capital Partners | NA | 57,800m2 | NA | The deal follows ZAGA’s first close in March 2026, when the firm secured €500m of equity commitments for its ZAGA German Real Asset Opportunities II Fund. |
| Assets on the market | |||||||
|---|---|---|---|---|---|---|---|
| Asset | Asset type | Location | Vendor | Size | Price (mln) | Broker | Key facts |
| Hotel California | hotel | Paris | Tikehau | 172rooms | €300 | NA | Tikehau completed a full refurbishment this year after buying the asset for €125m in 2023. |
| Teatro Luxury Apartments | living | Florence | Blue Noble, Hines | 150 apartments | €175 | NA | The asset is the largest serviced apartment complex in the city. |
| Thames Tower | office | Reading, UK | Spelthorne Borough Council | 195,111sqft | £84 (€97) | Knight Frank | It is the first asset to be formally brought out from Spelthorne Borough Council’s up-to-£1bn up-for-grabs portfolio. |
| Havelock | office | Manchester | Credit Suisse | 115,000sqft | £60 (€70) | Savills and CBRE | The fully-let government-occupied asset generates £4.4m annually. |
| Vincent House | hotel | London | The Alice Roughton Foundation | 137rooms | £50+ (€58) | Savills | Proceeds from the sale are intended to facilitate the provision of affordable housing for individuals at risk of homelessness. |
| Beck Retail Park | retail | Wakefield, UK | Fiera | 200,000sqft | £34 (€39) | Montagu Evans and Xprop | The retail park is anchored by Sainsbury’s. |
| Central Retail Park | retail | Milton Keynes, UK | CBRE Investment Management | 110,221sqft | £28.4 (€33) | Montagu Evans | The sale reflects a net initial yield of 6.25%. |
| Nuneham Estate | mixed | Oxfordshire, UK | NA | 810 acres | £26.5 (€31) | Bidwells | The estate includes 810 acres of arable land, 27 homes and heritage assets including Nuneham House, Mansion Lodge and Boat House. |
| Red Sun Village | hotel | Sardinia, Italy | NA | 248rooms | €30 | NA | The asset occupies a 190,000m2 seaside site. |
| Cheltenham John Lewis | retail | Cheltenham, UK | Dukeminster | 180,000sqft | £22 (€25.5) | Knight Frank | The vendor is seeking offers reflecting a net initial yield of 8%. |
| 90% stake in Demire | corporate | Germany | Apollo Global Management and Wecken & Cie | 512,000m2 | NA | Rothschild & Co. | The aim of the sales process is to find a new anchor investor with financial strength. |
| Recently completed loans | ||||
|---|---|---|---|---|
| Lender(s) | Borrower(s) | Asset(s) | Loan Size (mln) | Key facts |
| OCBC and Mashreq | Brookfield | 30 Fenchurch Street | £325 (€377) | The office refinancing was provided by banks from Singapore and the UAE. |
| UBS | PPF Real Estate | Dutch portfolio | €178 | The five-year loan refinances a collection of more than 150,000m2 of office space and one hotel spanning Amsterdam, Rotterdam and Arnhem. |
| Leumi | LNT | UK care home portfolio | £100 (€116) | The facility will support the delivery of 330 beds across schemes in Norfolk, Lincolnshire, Devon, Gloucestershire, Cheshire and Newcastle upon Tyne. |
| BayernLB | Dietz Group | four logistics properties in Germany | €100 | The almost fully let properties are located in Bürstadt, Biblis, Schifferstadt, and Raunheim. |
| Leumi | Castleforge, Fortress | Vintners Place and Thames House in London | £85 (€98) | The loan will fund the purchase and refurbishment of the interconnected office buildings. |
| Investec Real Estate | Aureon Partners and Arax Properties | Falcon Business Park in Loughborough | £42 (€49) | The facility refinances the sponsors’ existing financing on the fully let, income-producing estate. |
| Pbb | HAL REIM | dataR data centre in Rellingen, Germany | €45 | The loan is intended for the development and operation of the data centre. |
| Bank Millennium | Panattoni | Panattoni Park Poznań West Gate I | €31 | The complex comprises two buildings with a total area of nearly 61,000m2. |
| Investec | Barwood | Birmingham PBSA scheme | £19 (€22) | The three-year senior development loan will finance the development and stabilisation of a 233-bed PBSA scheme. |
| New mandates/JVs and funds on the market | |||
|---|---|---|---|
| Firm | Fund/mandate/JV | Strategy | Details |
| Partners Group | Real Estate Secondary V | Investing in quality income-producing assets by providing liquidity to both GPs and LPs through GP-led secondaries, LP-led secondaries, and other liquidity solutions. | The fund, which is targeting $1.5bn, has held a first close with over $650m in commitments. |
| GSA and Cain | Rome PBSA development JV | The two partners will develop a 561-bed student residence in the Prenestino district of Rome. | Development marks the first investment in Italy for Cain’s pan-European PBSA platform |
