NSI has acquired a fully let 8,315m² office building located at Derkinderenstraat 2-24 in Amsterdam West. The building is multi-let to six tenants and has a WAULT of 5.5 years. The building was constructed in 2000 and has an A-label energy score. The acquisition price (excl. purchase costs) of €23.7m represents a gross initial yield of 6.0% and a reversionary yield of 7.3%.
The deal fits NSI’s strategy to selectively acquire interesting value-add opportunities in growth locations. Following this transaction, Amsterdam will make up 50.6% of the Offices and HNK portfolio. The transaction will initially push the LTV to 38.5%, but scheduled disposals during the year will bring the LTV down to the lower end of the target range of 35-40%.
Anne de Jong, CIO of NSI commented: “This acquisition emphasises our strong focus on Amsterdam. We see multiple ways to add value, from unlocking the reversionary potential to creating additional floor area through redevelopment initiatives. This submarket is transforming rapidly into a multifunctional location and has excellent transportation links. The asset is adjacent to the A10 ring road and nearby station Lelylaan offers train and metro connections, whilst the city centre of Amsterdam is 15 minutes away by bike.”
