Deka buys office development in Amsterdam for €200m

German open-ended fund manager Deka Immobilien has acquired The Edge office building currently under construction in Amsterdam’s Zuidas business district from the developer OVG.

Deka bought the 40,000 m2 building from the Rotterdam-based green office specialist for around €200 mln on a freehold basis, reflecting a gross initial yield of 6.5%, PropertyEU Research has established.

The parties to the deal declined to disclose financial details.

The Edge will be completed in October, when OVG will hand the property over to tenants Deloitte and law firm AKD on a long-term lease.

The building was designed by Ron Bakker and Lee Polisano of PLP Architecture in London. It has been awarded a BREEAM-NL ‘Outstanding’ certificate and will on completion be one of the most sustainable buildings in continental Europe.

Jan Hein Tiedema, commercial director of OVG Netherlands, said: ‘At the start of this project it was our goal to reach the highest level of sustainability and comfort. During the crisis we decided to make an extra investment in energy efficiency and innovative LED systems. We have always trusted in our proposition, which combines transparent architecture, extreme sustainability and optimal user comfort. We are extremely proud to hand the property over to one of the biggest international investors in the world.’

Deka Immobilien was advised on the legal and fiscal side by Baker & McKenzie and received technical assistance from CBRE. OVG was represented by law firm Houthoff Buruma, PWC and JLL. ABN Amro Real Estate Finance is the financier.

GERMAN HEGEMONY
The deal strengthens the German hegemony on the Zuidas district in Amsterdam. Deka and German peer Union Investment are big investors in the area and recently stepped up their buying activity. Earlier this year, Union Investment acquired the ITO + SOM office ensemble for €244 mln, expanding its holdings in the area which also include 522 hotel rooms.

Deka owns the office complexes Vinoly, The Rock and Symphony (acquired late last year for €215 mln from Philips pension fund) totalling 94,000 m². The biggest office landlord in the area remains CBRE Global Investors' Dutch Office Fund, which owns the WTC Amsterdam complex comprising 125,410 m2.