Dutch bad bank Propertize, created by the government to wind down banking and insurance group SNS Reaal’s €4.8 bn property loan portfolio, has acquired the mixed-use New Babylon complex in The Hague for a symbolic €1.
Dutch bad bank Propertize, created by the government to wind down banking and insurance group SNS Reaal’s €4.8 bn property loan portfolio, has acquired the mixed-use New Babylon complex in The Hague for a symbolic €1.
The 155,000 m2 complex was owned on a 50-50 basis by SNS Reaal’s real estate arm SNS Property Finance and Dutch investor-developer Fortress. It comprises 55,000 m2 of offices, a 12,000 m2 shopping centre, 335 apartments and a hotel.
New Babylon has an estimated value of €400 mln and is one of the biggest real estate projects to be financed by Propertize.
Fund manager Amvest previously bought 176 rental apartments, while Germany’s Commerz Real acquired part of the office space.
SNS Reaal was nationalised in February 2013 after running into financial problems caused by its property finance business. In total, the bailout of the bank cost the Dutch taxpayer €4.8 bn. The spin-off of the property finance activities is part of the restructuring plan for SNS Reaal.
