Dutch listed landlord NSI has acquired a 12,000 m2 office building tin Utrecht for €20.5 mln.
The building at Uniceflaan 1 is fully let to Rijksvastgoedbedrijf (Central Government Real Estate Agency) with a unexpired lease term of 4.1 years. NSI will invest €300,000 to improve the energy score to a C-label. The purchase price, including upgrade investments, represents a gross initial yield of 10.3%.
NSI said that the deal was in line with its strategy to focus on larger office assets in the major cities. The office weighting towards the four largest cities in the Netherlands (Amsterdam, The Hague, Rotterdam and Utrecht) will increase to 58.7%, from 55.9% previously. The building has a JLL quality score of 72.0%, above the 60.3% NSI average.
The acquisition will be financed with a combination of cash from disposals and existing credit facilities. The LTV will increase to 44.8%.
Anne de Jong, CIO of NSI commented: 'The Rijksvastgoedbedrijf is a fantastic tenant with a very strong covenant. Given the current rental level and scope for multiple letting strategies, including transformation in a multi-tenant (HNK) building, we see value add potential in the future.'
