The Royal Bank of Scotland (RBS)’s decision to shed more than 90% of its staff in the Netherlands will lead to a major vacancy in the UN Studio office building it occupies in Amsterdam's Zuidas district.
The Royal Bank of Scotland (RBS)’s decision to shed more than 90% of its staff in the Netherlands will lead to a major vacancy in the UN Studio office building it occupies in Amsterdam's Zuidas district.
The Edinburgh-based bank has occupied the top nine floors, or 40% of the 25,000 m2 office space, of the 85-metre tower since it opened in 2010.
RBS announced on Tuesday that it was reducing its Dutch staff from 650 to 50 as part of a worldwide reorganisation that will scale back its global presence from 38 countries to 13.
German institutional investor Union Investment, which owns the UN Studio building, will need to find a new tenant for the 12th and 13th floors by June, when a quarter of RBS’s lease runs out. The two floors represent about a quarter of the bank’s 10,000 m2 occupancy.
The remaining seven storeys are let on a longer-term lease, meaning RBS will have to find its own replacement or continue paying the rent.
The UN Studio building is currently 90% let to tenants including DTZ Zadelhoff, Oranje-Nassau Energie, Tesa and The Office Operators. An underground car park with 2,100 spaces is operated by Q-Park. The vacant space has been offered for an annual rent of €340 per m2.
RBS expanded its operation in the Netherlands dramatically in 2007 when it led a consortium to buy rival Dutch bank ABN Amro for €72 mln. The following year the Dutch government bought out ABN Amro, while RBS was 80% nationalised in the UK as the global financial crisis set in.
RBS is also the account holder for the Dutch government, including all ministries, under a contract which runs until June 2016. The cabinet has come under pressure from opposition parties to change its house banker next year.
The Dutch government is expected to list ABN Amro on the Amsterdam stock exchange in the second half of 2015. The bank’s own analysts anticipate a sale price of between €12 mln and €20 mln, though others have estimated its value as low as €7 mln. ABN Amro made a net profit of €1.1 mln last year, or an underlying profit of €1.5 mln once one-off costs are excluded.