NSI acquires Dutch office portfolio for €143m

Listed property investor NSI has acquired a portfolio of seven office assets in the Netherlands from a joint venture between OVG Real Estate and Goldman Sachs for €143.5 mln.

The deal reflects a gross initial yield of around 8% and boosts the share of core assets in NSI’s office portfolio to 63% from 54%.

Known as the Cobra portfolio, the seven properties comprise a total 56,500 m2 and have an average occupancy rate of 97% and a WAULT of around seven years. They include four properties in Amsterdam (Vivaldi Offices I and Vivaldi Offices II, Centerpoint I and Centerpoint II), two assets in Rotterdam (Alexanderpoort and Alexanderhof) and one in ’s Hertogenbosch (Het Binnenhof).

OVG Real Estate and Goldman Sachs acquired the portfolio, formerly known as Unicum CV, from CBRE GI in 2013.

NSI said the acquisition marks the next phase of its asset rotation strategy, aimed at increasing quality and scale in the Dutch office market.

‘We are very excited that we have now taken the next step in the execution of our strategy, enabling us to further enhance our strong position in the Dutch office market,’ said Johan Buijs, CEO of NSI. ‘With the partial divestment of our stake in IOW in June, and the continuous sale of non-strategic and optimized assets in the Dutch portfolio we freed up capital. With this reinvestment we deliver on our target to improve the quality of our portfolio.’

Commenting on the disposal, Boudewijn Ruitenburg, director of investments at OVG Real Estate, said: ‘Since the portfolio acquisition in 2013 we have added significant value through active asset management, thereby increasing the overall occupancy rate. We have also made the buildings more sustainable and healthier places to work. It is the right point in the current cycle for a long-term investor such as NSI, to acquire this portfolio. For OVG, the success of the Cobra portfolio is a testament for our strategy to focus on improving existing real estate assets.’

NSI was advised on the transaction by Houthoff Buruma and EY. Goldman Sachs and OVG were represented by Loyens & Loeff and CBRE.