Patrizia has acquired nine freehold office buildings in the centre of The Hague, on behalf of a client, from Onderlinge Levensverzekering-Maatschappij ‘s Gravenhage U.A. The portfolio, which is completely vacant, offers a total gross lettable area of c.8,500m² and in addition a private garden, 79 parking spaces and bicycle storage. Eight of the buildings are listed, having been constructed in the 1860s, whilst the ninth asset was completed in 2003. The purchase price was not disclosed.
Patrizia has identified an opportunity to implement a comprehensive redevelopment programme, which will preserve the cultural heritage of the buildings and create modern, high-quality office space with new amenities and plenty of character. The company will then seek to lease up space, capitalising on the strong demand from a variety of occupier types, including government institutions, services, technology and media businesses, for Grade A office stock in The Hague where current office vacancy is only 7.3%.
Emile Poort, Head of Transactions Patrizia Benelux, commented: “This acquisition demonstrates the strong appetite that exists amongst our investors for value-add investment opportunities in the Netherlands. Strongly aligned with our strategy of identifying properties with upside potential in established and developing locations where occupier demand is strong, this portfolio presents a compelling opportunity and also grows our Dutch development platform. Working with historical assets brings a unique set of challenges and opportunities, which we understand well at Patrizia. Our aim is to breathe new life into these buildings by sensitively redesigning the structures and layout, whilst retaining their character, to meet the requirements of today’s occupier.”