In 2004, the Dutch real estate investor KFN has realized a net profit of â¬32 million (2003: â¬34 million). Despite the weakening office market, KFN realized 60,000 mÂ² of rental transactions. As a result, vacancy ended up at approx. 10%. For the year 2005, KFN aims to reduce the vacancy to a maximum of 9%.
In line with its rejuvenation strategy, KFN sold ten office buildings and the apartments in the Weenatoren in Rotterdam. KFN also acquired two high quality projects in 2004: Oosterdokseiland in Amsterdam (10,000 mÂ²) and Brouwershof in Amersfoort (14,000 mÂ²). In April, the high-rise office blocks of WTC Amsterdam Zuidplein were delivered and in December KFN delivered the first phase of Heijmansâ headquarters. KFN will consolidate its rejuvenation strategy in 2005.
Extensive refinancing operation
In 2004, KFN realized an extensive refinancing operation, replacing â¬527.3 million of existing facilities for a Commercial Mortgage Backed Securities (CMBS) bond loan of â¬450 million and a Syndicated Revolving Credit Facility of â¬150 million.
KFN is the first investor in the Netherlands that applies a CMBS for offices in its financing strategy. After a rating process affected by Standard & Poorâs and Fitch Ratings, the CMBS notes were issued with an AAA rating (highest possible rating). In addition, KFN reconsidered its interest rate exposure management, thus ending the existing swap contracts. This new strategy and refinancing will result in an extensive annual saving of KFNâs financing costs.