Vastned O/I has bought The Red Elephant office property located on Zuidhollandlaan in The Hague, for EUR 33 mln including costs. The building, dating back to 1924, provides a total lettable floor area of over 10,000 m2, as well as 78 parking spaces. The deal reflects a net initial yield of 5.8%. The total annual rental income amounts to EUR 2.1 mln. The current tenant, law firm De Brauw Blackstone Westbroek, will relocate in the course of 2009.
Vastned O/I has bought The Red Elephant office property located on Zuidhollandlaan in The Hague, for EUR 33 mln including costs. The building, dating back to 1924, provides a total lettable floor area of over 10,000 m2, as well as 78 parking spaces. The deal reflects a net initial yield of 5.8%. The total annual rental income amounts to EUR 2.1 mln. The current tenant, law firm De Brauw Blackstone Westbroek, will relocate in the course of 2009.
Hans Pars, chief investment officer of VastNed O/I, said: 'This investment and the recent acquisition of Parkstraat 101-109 takes the size of our property portfolio in The Hague from 2.9% to 7.7% of our total Dutch property portfolio. We like to increase our exposure to property in liquid office markets, which is matched by this investment. Reletting the building will be our biggest challenge, which we view with confidence due to the prosperous outlook of the office market in The Hague.'
