Dutch listed property firm NSI has acquired a 12,700 m2 office building on Kingsfordweg 43-117 in Amsterdam.
The building was bought for €36.8 mln, representing a gross initial yield of 4.9% and a reversionary yield of 7.1%.
The building is let to eight different tenants spread over 15 floors with a weighted average unexpired lease term of 3.4 years until first break.
The asset's vacancy of 24.7% and 10.2% reversion potential on current leases offers ample opportunity to add value to the asset, NSI said in a statement.
'This is an excellent investment with multiple opportunities for value-add initiatives,' commented Anne de Jong, CIO of NSI. 'We are very enthusiastic about the Sloterdijk area as the ongoing transformation into a multi-functional area is creating a more dynamic and attractive office market. We are also particularly pleased that in the asset rotation to a better quality, more concentrated portfolio we are so far proving able to identify assets with net yields not too dissimilar to the yields we are selling at.'
The deal is in line with NSI’s strategy to focus on the G4 and especially Amsterdam. Following this transaction Amsterdam will make up 46% of the offices portfolio, from 44% previously.
The pro-forma LTV will rise from 37% at year-end 2017 to 39% at present but it is expected to fall back below 37% by the end of June 2018, largely as a result of planned disposals.
