VastNed Offices/Industrial has acquired an office building on 650-698 and 700-748 Arthur van Schendelstraat in the center of Utrecht, the Netherlands, for €25.6 million at a net initial yield of 5.9%.
The property consists of two connected office towers offering a total of 9,124 m² of office space with associated parking spaces. Gross rental income amounts to 1.7 million per year. The property is fully let, the main tenants being the Dutch Government (Department of Waterways and Public Works) and ProRail. Rent, taking into account a realistic price for the parking spaces, is at a level of approximately 175 per m². The seller is Deka Immobilien Investments GmbH.
The property is located in the popular train station area of Utrecht, which has good accessibility both by car and by public transport. This area makes up a quarter of the total Utrecht office market and boasts a very low vacancy, both nationally and within the Utrecht region.
Hans Pars, chief investment officer of VastNed Offices/Industrial, comments: "This acquisition is indicative of the type of investments we are looking for. The property offers modern, representative office space in a market that is marked by very limited vacancy and very limited new developments in the short term. These features, combined with the upswing of office employment in Utrecht, offer good opportunities for realising future rent and value growth by active asset management."