Dutch listed property firm NSI has sold 16 retail properties and acquired two office assets as part of its recently announced strategy of focussing on larger office properties in major cities in the Netherlands.
In three separate transactions, the company has disposed of 16 retail assets for a total value of €150.9 mln and acquired two office properties in Amsterdam for a combined value of €78.8 mln, excluding purchase costs.
The 16 retail assets (see list below) were sold to Dutch investor-manager Orange Capital Partners (OCP) and are located mainly in the Randstad conurbation. Anchor retailers in the portfolio include supermarket chains Ahold, Jumbo, Lidl and Hoogvliet.
Casper Vernooij, partner at Orange Capital Partners, commented: ‘The portfolio comprises predominantly convenience retail assets which is at the heart of our strategy. The acquisition further adds to our existing portfolio in the Netherlands. We will use our expertise and local knowledge to invest in these assets and make them more attractive to both retailers and local consumers.’
The latest additions bring the total number of assets in OCP’s convenience retail portfolio to 28, covering a total 150,000 m2.
Office assets
The first of the two office assets acquired by NSI is Vitrum, a 11,700 m2 office building located on the fringes of Amsterdam's South-Axis office market which was purchased for €45 mln, representing a gross initial yield of 7.2%. The building is fully let to the government’s real estate agency with an unexpired lease term of 4.25 years.
The second Amsterdam asset is Laanderpoort I & II, a 13,300 m2 office complex located in Amsterdam South-East, next to the future ING Group global head office. The acquisition price of €33.8 mln represents a 7.6% gross yield. The building is fully let to ING Group with a WAULT of 3.8 years. The complex offers multiple options for value-add initiatives in what NSI says is a ‘healthy and promising submarket’ of Amsterdam.
These deals are in line with NSI’s recently announced strategy to be an active asset manager with a focus on larger office assets in selective Dutch cities. ‘We are very pleased to take the first major step in the execution of our new strategy to sell our retail assets and rotate into larger office assets, mostly in the Randstad area,’ said Anne de Jong, CIO of NSI. ‘We see good medium-term potential to add value to the two new additions to the office portfolio. Also, having been able to sell these retail assets at book value, we are looking forward to the further execution of our asset rotation strategy with confidence.’
Following the deals, NSI's retail exposure has fallen to 21% of the total portfolio. The company's LTV post these transactions will fall back to 42%.
Retail portfolio sold:
Address, Area (m2)
Annie Romeinplein, Amsterdam 5,701
Ambachtsplein, Rotterdam 10,093
Breestraat 37-41, Beverwijk 2,054
Fleringenstraat, Rotterdam 6,834
Hildo Kroplaan 20-106, Den Haag 2,488
Mariniersweg, Rotterdam 825
Karel de Groteplein 1-26, Deventer 7,873
Beijerlandselaan, Rotterdam 4,379
T.G. Gibsonstraat, Deventer 3,695
Mgr. Nolenslaan, Schiedam 5,637
Roserije, Maastricht 3,541
‘t Plateau, Spijkenisse 6,021
De Driehoek, Nagelstraat, Markt, Oldenzaal 12,306
Kerkstraat 12-40, 82-88, Ulft 4,852
De Wal, Oss 1,728
De Plantage, Utrecht 6,655
NSI was advised in this transaction by Houthoff Buruma and Cushman & Wakefield. CBRE acted for Orange Capital Partners.
