VastNed, the Dutch-based office property investor, has taken its first step into the German market by acquiring an office building for EUR 34.6 mln in the prime Medienhafen business district of Dusseldorf. The property comprises 9,570 m[sup]2[/sup] of lettable area and has 52 underground parking place.
VastNed, the Dutch-based office property investor, has taken its first step into the German market by acquiring an office building for EUR 34.6 mln in the prime Medienhafen business district of Dusseldorf. The property comprises 9,570 m2 of lettable area and has 52 underground parking place.
The annual gross rental income is EUR 2 mln, resulting in a net initial yield of 5.4%. VastNed said this reflected the fact the current rent is below market level. The largest part of the office space is let to global management consultancy A.T. Kearney. The ground floor provides two quality restaurants, one of which has been awarded one star by the Michelin Guide.
VastNed said the outlook for the Dusseldorf office market is healthy and since rental levels are at a historic low and occupancy rates are set to increase, further rental growth can be expected.
Hans Pars, chief investment officer of VastNed Offices/Industrial: 'This year we decided to increase our exposure to large, liquid office markets with rental upside and therefore to enter the German market.'
'This is the first result, but we clearly look for further investments in the most important and promising office markets in Germany, just as we look for this kinds of markets in the Netherlands.'
