Czech investment fund PPF Group has made a big splash in the Netherlands with the acquisition of an office and retail portfolio at a high yield.
Czech investment fund PPF Group has made a big splash in the Netherlands with the acquisition of an office and retail portfolio at a high yield.
The investment volume of €140 mln, reflecting a gross initial yield of 12%, makes this the second largest reported real estate transaction by volume in the Netherlands so far in 2013 and the largest office deal.
In the first transaction by PPF's real estate division in the Netherlands, the Czech investor acquired six office buildings and a shopping centre from AXA's German open-ended real estate fund AXA Immoselect.
The only larger Dutch deal was carried out by AXA Real Estate. In June the real estate investment manager purchased NH Grand Hotel Krasnapolsky on Amsterdam's Dam Square for €157 mln on behalf of an Asian client.
In the latest deal by PPF, property adviser Cushman & Wakefield acted for the vendor, with Houthoff Buruma providing legal advice.
NL real estate acted for the buyer and will asset manage the portfolio. Ploum Lodder Princen and CVO Group provided legal and technical assistance.
The portfolio comprises 100,000 m2 of leasable area with an average remaining lease term of 6.5 years. The portfolio has, however, a 22% vacancy rate.
The office assets include Johan Huizingalaan 400 which comprises (12.033 m2 and a 8,900 m2 property on Karperstraat, both in Amsterdam, and a 7,000 m2 building on Monchyplein in The Hague.
The largest assets in the portfolio are the 27,600 m2 Eusebiusbuitensingel in Arnhem and Hofplein 20 in Rotterdam (18,900 m2). The sixth office asset is the 8,500 m2 Chelsea building in Rijswik.
The retail asset is Suydersee shopping centre in Dronten which comprises just under 14,000 m2 of leasable area. The portfolio has a total of 69 tenants, 55 of which are connected to the shopping centre.
PPF Real Estate Holding is part of the PPF Group, which invests in a wide range of market segments: banking and financial services, insurance, real estate, energy, mining, agriculture and bio-technology.
The real estate arm has a €1 bn portfolio, comprising 60 buildings, under management. PPF Real Estate operates in European cities, while PPF Real Estate Russia is focused on the Russian market.
