Dutch listed property firm NSI has announced the acquisition of an office building fully let to telecomm operator KPN for a price of €57 mln excluding costs.
The asset, also known as the Glass House, is believed to have been sold by US group NorthStar, which bought it in December 2014 as part of its €1.1 bn acquisition of the SEB Europe Prime office portfolio from SEB Asset Management.
SEB had acquired the asset in 2007 from OVG for €92 mln.
Located at the Teleportboulevard 121-133 in Amsterdam, next to the Sloterdijk train station, the property provides over 23,000 m2 of spaceover eight storeys and boasts an A energy label. The asset traded for a gross initial yield of 11%, reflecting the short weighted average unexpired lease term of 3.2 years.
NSI said the building has two entrances, making it suitable for multi-tenant use.
'This acquisition perfectly fits our portfolio strategy,' commented Anne de Jong, CIO of NSI. 'We consciously pursue further growth in Amsterdam and do see Amsterdam Sloterdijk as a strong office location with potential for growth. The area benefits from the transformation to a multifunctional residential and office area and a strongly improved accessibility. Moreover, we can add value to the property – being modern, sustainable and well laid out.'
The acquisition will be financed with existing credit facilities. The loan-to-value (LTV) post acquisition amounts to 42%, NSI said, with an average cost of debt of 3.4%.
NSI was advised by CBRE, Loyen & Loeff and Search Engineering. The seller was advised by Cushman & Wakefield.
NSI has been actively managing its portfolio by selling smaller non-core assets and reinvesting the proceeds into high-quality office buildings. The company has sold a total of 25 non strategic assets in the second quarter of the year.
Following the acquisition, the G4 region comprising the Dutch cities of Amsterdam, The Hague, Rotterdam and Utrecht will account for nearly 56% of NSI's office portfolio, up from 52% at end-March.
