NSI sold its entire Large Scale Retail portfolio in one single transaction for €74m, a €6.3m or 9% premium to the December 2016 book value. This is a further important step in the execution of the new strategy to become a focussed office investor in selective major cities in The Netherlands.
The annual net rental income on the portfolio sold was €4.9m and the EPRA NIY was 7.2% at the end of March 2017. The portfolio’s EPRA vacancy at the end of March was 5.4% below the 21.9% for the whole of NSI’s portfolio.
Following this deal the exposure to offices (including HNK) is 84%, up from 66% per December 2016, and retail is down to 16% of the total portfolio. The pro-forma LTV post this transaction will fall to below 40%.
Anne de Jong, CIO of NSI comments: “We are pleased to announce another successful transaction which brings further focus in NSI’s portfolio. Within 5 months of announcing the planned exit from the Retail business, we have now sold 57% of our retail assets. We will continue our efforts to focus the portfolio further in the period ahead, although from here we expect primarily asset-by-asset deals. Furthermore, our retail team will continue to look for ways to maximise the value of the remaining assets.”