European investment fund manager, DRC Savills Investment Management has provided a substantial mezzanine loan to finance Victory Group's €765 mln purchase of ABN Amro’s global head office in Amsterdam in December 2021.
The 950,000 ft2 (88,250 m2) office asset is located in the core of the Zuidas business district in southwest Amsterdam and is entirely leased to ABN Amro. The sale by ABN Amro is understood to be the largest single asset real estate transaction ever in The Netherlands, at the time of sale.
Cyrus Korat, co-founding partner of DRC SIM, commented: 'We are proud of helping Victory to complete the purchase of this unique property. Supporting a business plan with excellent ESG credentials being delivered by a sponsor we know well and has an outstanding track record of delivery was a great opportunity for our investors.'
Victory is partnering with G&S Vastgoed to deliver a more sustainable, integrated and future proof mixed-use redevelopment of the complex, with strong ESG credentials.
Erik Moresco, founder of Victory Group, commented: 'Victory Group has a long-standing relationship with DRC SIM which we are pleased to continue through their mezzanine loan financing of this incredibly exciting acquisition.
'Throughout the process, we were extremely pleased to be able to rely on our trusted partners, who share our vision for a sustainable future. We’d like to thank DRC SIM for their speed of execution and commercially astute approach throughout the process.'
ESG improvement of the asset was a key consideration for DRC SIM when making its investment decision. DRC SIM delivered financing within a short timeframe and was able to provide certainty of delivery through its fully discretionary managed vehicle; ERED IV.
DRC SIM is a market leading commercial real estate debt platform dedicated to lending across the capital structure in the UK and Western Europe. DRC SIM has invested more than half a billion euros of capital in commercial real estate lending in the Netherlands over the last 3 years.
A team from Simmons & Simmons advised DRC SIM on the transaction. Additionally, commercial advice was provided by Mount Street Mortgage Servicing Limited, Colliers International, Watson Laurie and Drees & Sommer.
