UK private real estate investment firm Capreon has acquired New Babylon, a prime office asset in The Hague, the Netherlands, from PFA, Denmark’s largest pension fund, and Hannover Leasing, a German asset manager.
Financial details were not disclosed, but market sources put the purchase price for the asset at around €120m, reflecting a net initial yield of around 7%.
New Babylon comprises 49,000sqm of office, retail, and leisure space and is 95% let to several long-term tenants including TNO, the Netherlands’ largest independent research and technology institute. The property is located next to The Hague’s Central Station and carries a BREEAM In-Use Very Good rating.
Capreon said the transaction demonstrates its continued confidence in the prime end of the office market following the firm’s recent acquisitions of 70 St Mary Axe – the “Can of Ham” – in London and the “Technique” building on Goswell Road in the UK capital.
The Babylon transaction also builds on Capreon’s recent track record in the Netherlands following its deal earlier this year with the municipality of Eindhoven at Brainport Industries Campus.
Raphael Noe, CEO at Capreon said: “On the back of our recent acquisition of 70 St Mary Axe, London, we are delighted to announce our purchase of New Babylon, another institutional prime Grade-A office asset.
“The office’s core location adjacent to The Hague’s Central Station as well as its strong tenant offerings and ESG credentials position it well within a market where new supply is constricted and tenant demand for best-in-class workspace remains strong.
“We look forward to being continued stewards of this prime asset following the successful management and investment delivered under PFA Pension and Hannover Leasing’s ownership.”
PFA Pension and Hannover Leasing, a subsidiary of Corestate Capital Holding, purchased New Babylon from Icon Real Estate in 2019. The two parties reportedly paid around €170m for the asset.
Commenting on the disposal, Peter Morgan, head of real estate at PFA said: “The sale is a natural part of our strategic shift, where we are gradually winding down our international real estate allocation and increasing our focus on directly held properties in Denmark. The transaction supports our ambition to build a more focused, home-market oriented portfolio.”
Capreon was advised on the transaction by NL Real Estate, CMS, Drees & Sommer, Deloitte and Borgen Tax.
Colliers advised Hannover Leasing and PFA Pension on the transaction. They were supported by Houthoff, KPMG and SGS Search.
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