NSI has agreed to acquire the 9,743m² ONE20 office building located at Teleportboulevard 120-142 in Amsterdam-Sloterdijk. The building is currently let to four tenants and has an EPRA occupancy rate of 69%, with a WAULT of 4 years. With an additional lease already signed, the occupancy rate will improve to 76% and the WAULT to 5.7 years, on July 1. The building, constructed in 2001, has an A-label energy score.
The acquisition price (excl. purchase costs) of €34m represents a gross initial yield of 3.5% (4.1% on July 1) and a reversionary yield of 6.3%. Strong demand for modern office space in Amsterdam-Sloterdijk in recent years has resulted in an overall vacancy rate of below 5% for the area and an average vacancy rate of 1.5% for the four NSI assets in this submarket. Due to the healthy underlying market dynamics rents of in excess of €200 per m² have already been achieved.
Ahmed Ouahim, Head of Transactions of NSI commented: “ONE20 is located next to both the Glass House and Q-port buildings and so it further cements our position in this strong sub-market of Amsterdam. The Sloterdijk submarket is transforming rapidly to a multifunctional location with excellent transportation links, including Amsterdam’s second busiest train station. The building offers great value-add potential through letting up the remaining vacancy and capturing the potential reversion in existing leases”.