DEAL IN DEPTH: Union bets on mixed-use Amsterdam hub

Union Investment’s acquisition of AzkoNobel’s HQ development is the latest vote of confidence for Amsterdam’s Zuidas mixed-use district.

Given that Amsterdam has in recent years been plagued by some of the highest vacancy rates in Europe at around 15%, Union Investment Real Estate’s acquisition’s of a major office project there could at first glance be seen as rash. But a closer look at the specifics and the deal seems to make more sense: a 15-year lease to a global corporate in one of the leading mixed-use districts in the Dutch capital.

This was the rationale behind the Hamburg-based fund manager acquiring the new 15,200 m2 headquarters of global coatings specialist AkzoNobel in the South Axis (Zuidas) district in mid-March from Dutch developer Dura Vermeer. The asset was bought on behalf of Union’s Unilmmo: Deutschland open-ended fund. Both sides declined to comment on the price tag but PropertyEU established from market sources that it was between €75-80 mln, reflecting a net initial yield of 6.1%.

Click on the link below to read the full deal in depth which appears in the June edition of PropertyEU Magazine.