European real estate manager Corum has acquired an office property in Heerlen, the Netharlands, for its flagship real estate fund Corum Eurion, from pension fund ABP.
The 42,000 m2 office building at Oude Lindestraat 70 houses the HQ of Dutch pension administrator APG and has a triple net lease of over 16 years.
Although Corum claims a total investment of around €50 mln with a net initial yield of 6.4%, the Dutch Land Registry puts the figure at €45.5 mln.
Corum head of real estate Philippe Cervesi said: ‘The APG office building fits CorumM Eurion's profile perfectly, as the lease is for a very long term, with a solid tenant. APG is one of the largest pension providers in the world. Moreover, the tenant has recently started renovating some floors, an investment of over €25 million.’
The Dutch deal comes only days after Corum purchased the 19,000 m2 ‘The Georgin’ building in Brussels, housing the HQ of broadcaster RTL Belgium, for around €33 mln, with a net yield of over 8.3%, expected to climb to 9% after indexation.
Last December, Corum Origin snapped up an office building in Rotterdam used by the National Police, in addition to an office building of the Flemish Government in Brussels, bought for a record €173 mln.
Corum believes that market conditions are particularly favourable for acquisitions and that there is a window of opportunity for the purchase of real estate assets.
Philippe Cervesi adds: ‘We don't know how long it will last, but we want to take advantage of the current climate to be very present in terms of acquisitions. For the last seven years it has been a seller's market and now we are back in a buyer's market, we are seizing this moment with both hands. It's a great opportunity to bring high-quality buildings at higher yields back into our portfolio.’
