NSI boosts Swiss portfolio with EUR 47m purchase

Nieuwe Steen Investments said on Monday it has reached agreement with unnamed parties on the acquisition of two commercial properties in the centre of Fribourg, Switzerland, for a total sum of EUR 47mln, excluding costs. The deals are expected to be finalised by mid-2008. The Dutch property fund said the investments, reflecting a 7% yield, will bring its total international portfolio to EUR 93mln. The company's other assets in the country consist of the Silvergate office building in Thalwil, representing an investment of EUR 27mln, and the Herti shopping centre in Zug.

The latest acquisitions involve the Perolles shopping centre in the heart of Fribourg which provides about 9,800 m² of retail space as well as 59 apartments and an underground carpark for 275 cars. Developed in the 1990s, the property generates a rental income of about EUR 2.9mln. The anchor tenant Migros occupies about 60% of the retail area on a long-term lease. Denner supermarkets is another main tenant in the mall. The 59 apartments are fully occupied.

The second acquisition concerns the Perolles 2000 retail and office complex, which is located near the first property. Built in 2000, the fully-occupied complex provides 2,267 m² of space, including about 920 m² of retail area and 15 parking spaces. The office space has been mainly let to Vivao Sympany insurance brokers. The rental income of Perolles 2000 amounts to about EUR 380,000.

'The acquisitions in Fribourg fit in perfectly with our portfolio and strategy of internationalisation. Fribourg is a city in an economically strong region and Switzerland is a country with a stable economic and political climate,' said Anka Reijnen, CEO of NSI. 'These are important conditions that we set for internationalisation.' With a population of 37,000, Fribourg is located 30 km southwest of Bern, in the French part of Switzerland.