Finland’s Ilmarinen has invested in a large office property in Rotterdam alongside an unnamed German institutional investor, in the pension insurance company’s third Dutch real estate investment.
The property, called Central Post, has total floor area of 38,000sqm.
Mikko Antila, head of international real estate at Ilmarinen in Helsinki, said: “The investment is well in line with Ilmarinen’s strategy, according to which we seek international diversification for our real estate portfolio in a profitable and secure manner.”
The long and diversified lease profile of the building, together with the relatively competitive returns achieveable in the Rotterdam office market, made the investment a compelling one, he said.
The German investor and Ilmarinen will each own 50% of the building.
No financial information about the transaction has been disclosed, but the deal size is understood to be in a “low three-digit million” figure in euros.
The Rotterdam property is currently fully occupied, Ilmarinen said, adding that the largest tenants include chemicals company Lyondell Basell, media house De Persgroep and state company firm ProRail.
Built as a post distribution centre in the 1950s and located next to the main railway station in the city centre, the building was refurbished as a modern office property in 2009 and 2010, Ilmarinen said.
This upgrade involved energy-efficiency improvements, including a doubling of the glass facade and installation of energy-efficient lift and lighting systems.
Hannover Leasing acted as the adviser for both buyers and will also be responsible for the management of the property.
The Rotterdam acquisition is Ilmarinen’s third investment in the Netherlands, Antila said.