Dutch property investor VastNed Offices/Industrial has purchased a 13,000 m[sup]2[/sup] office building in the city of Frankfurt for EUR 37 mln, bringing its total investments in the German office market up to EUR 90 mln.
Dutch property investor VastNed Offices/Industrial has purchased a 13,000 m2 office building in the city of Frankfurt for EUR 37 mln, bringing its total investments in the German office market up to EUR 90 mln.
VastNed said that the latest purchase price reflects a net initial yield of 5.5%. The company said that annual rental income for the newly built property amounts to about EUR 2 mln, or EUR 150 per square metre. Two-thirds of the property, which was acquired from local developer Hortus Real Estate, is already let. The remainder of the lettable space is covered by a four-year rental guarantee provided by the vendor.
VastNed also owns two office properties in Dusseldorf. Chief investment officer Hans Pars said the group is on track to build a portfolio of EUR 250-500 mln in the German office market.
