VastNed Offices/Industrial has signed a purchase agreement for the acquisition of the KPMG office on 41 K.P. van der Mandelelaan in Rotterdam, the Netherlands, for €17.7 million including purchase costs. The seller is White Estate Investments, based in Amsterdam.
The office property is located in Brainpark I, which offers good accessibility by car as well as by public transport (and where VastNed Offices/Industrial's head office is also located). The property has a lettable floor space of approximately 7,400 m² and a total of 162 parking spaces, offering an attractive parking ratio of 1:45.
The property is currently let to the international accountancy and consultancy firm KPMG. The annual rent is EUR 1.4 million and the net initial yield is 6.9%. In view of the relocation of KPMG to Brainpark III, the property is expected to be vacated in approximately two years' time. VastNed Offices/Industrial positively assesses the chances of reletting the property; a long-term lease contract would lead to a value increase. The acquisition will be financed by way of loan capital. The property's contribution to the 2006 direct investment result will be approximately 0.03 per share.
Hans Pars, chief investment officer of VastNed Offices/Industrial: 'This acquisition is interesting for three reasons: First of all, it is VastNed Offices/Industrial's first acquisition in a long time and therefore an important milestone in the turnaround of the property portfolio. Secondly, the characteristics of this acquisition clearly show what we are looking for: investments in liquid projects in markets with healthy prospects, to which we can add value by active asset management. And last but not least, this investment contributes directly to the result for our shareholders.'