Amsterdam-listed NSI has decided to focus exclusively on its office portfolio and is therefore putting its retail assets up for the sale, the company announced after the close of trading on the stock market on Tuesday.
The retail portfolio comprises 41 assets in the Netherlands with a market value of €382 mln. The office portfolio comprises 108 assets with a market value of €617 mln.
‘We have concluded that NSI needs to specialise to be able to thrive,' the company’s new CEO Bernd Stahli said in a press release. 'In view of the competitive landscape, the current size of the investment portfolio, the track record of the team, and our aim to lower the cost base, the focus going forward will be solely on offices and HNK (New Office Concept ed.).’
The retail portfolio is too small and diverse in character to be relevant and competitive, he added.
The proceeds of the sale will be used to expand the office portfolio in the top four cities in the Netherlands: Amsterdam, Rotterdam, The Hague and Utrecht. ‘Our ambition is to become the leading Dutch office investor and operator, maximising returns for shareholders through pro-active asset management, value-add initiatives, disciplined asset rotation and prudent balance sheet management,’ Stahli said. ‘We are taking all the necessary steps to achieve this.’
Under the capital recycling plan, the company plans to expand its New Office Concept. It currently has 13 office complexes that fall under this banner and Stahli sees room for another 10 locations around the country.
In 2016, NSI booked a direct result of €0.34 per share in line with its guidance. The vacancy rate fell three percentage points to 21.4% while net rental income rose to €74.3 mln from €68.5 mln a year ago.
