At a time when many of its peers are floundering and being forced to liquidate their funds, German open-ended fund manager Deka Immobilien is on a buying binge.
At a time when many of its peers are floundering and being forced to liquidate their funds, German open-ended fund manager Deka Immobilien is on a buying binge.
In the past month alone, the fund manager has struck twice in Amsterdam, snapping up landmark buildings for unprecedentedly high yields.
Early in May, Deka bought the Rock office tower in Amsterdam's Zuidas (South Axis) business district from Evans Randall for just less than EUR 133 mln or a record high gross initial yield of 7%. Evans Randall bought the property in 2007 for around EUR 165 mln or a gross initial yield of between 5.25% and 5.5%. The 30,000 m2 building was delivered in 2009 and is occupied by international law firm De Brauw Blackstone Westbroek on a 20-year lease.
Such a high yield has not been seen for years at a top location in the Dutch market. The deal is a sign of the strong pressure on prices for even the best office buildings in the Netherlands as the process of deleveraging continues.
The transaction was followed last week by Deka's acquisition of the Viñoly office building at Amsterdam's Zuidas business district for EUR 140 mln from Credit Suisse. According to market watchers, the deal reflects an initial yield just under 7%, indicating once more that bargains are possible in the Dutch capital. The Swiss fund manager’s EUR 6 bn CS Euroreal open-ended fund is under pressure to lift liquidity in the face of a planned one-day re-opening on May 21.
Located at Claude Debussylaan - Gustav Mahlerplein, Viñoly was acquired by Credit Suisse in 2005 and comprises nearly 30,000 m2 of offices with a minor retail element on the ground floor. According to the Amsterdam land registry, Credit Suisse bought the property for around EUR 120 mln. The complex is fully let with tenants including Google, ANT Trust and law firm Boekel de Nerée.
