Dutch REIT NSI has acquired a fully-let office building in Utrecht for €52.1 mln from WP Carey.
The acquisition price (excluding purchase costs) for the asset dubbed Jacobsweerd represents a gross initial yield of 6% and a reversionary yield of 6.6%.
'Utrecht’s central location, improving infrastructure and a more dynamic central station area will strengthen its position as a prime office location and will drive rental growth in the future,' said Anne de Jong, CIO of NSI.
The 14,396 mln office building located at Sint Jacobsstraat 200-400 in Utrecht has five, mainly state tenants and a weighted average unexpired lease term of 4.6 years.
'The asset is located in a vibrant multi-functional area of the city centre, five walking minutes from Hoog Catharijne shopping centre and the train station and offers future development potential.'
The building comprises three parts, two of which have an A-label and one has a B-label energy score. The acquisition price (excl. purchase costs) of € 52.1m represents a gross initial yield of 6% and a reversionary yield of 6.6%.
According to NSI, the deal fits the company's strategy to focus on the growth potential of the G4 cities. Following this transaction, Utrecht will make up 10% (Sept 18: 5%) of its offices and HNK (managed office) portfolio.
The REIT said that the transaction would initially push the LTV outside the 35-40% target range, but scheduled disposals in Q4 will bring it back to well within the 35-40% range by year-end.
Wp Carey bought the asset in 2015 from Dutch asset and investment manager PingProperties for the CPA18-Global fund, one of WP Carey's non-traded REITs.
