W. P. Carey Inc., announced today that CPA®:18 – Global, one of its managed non-traded REITs, has acquired the Jacobsweerd office building in Utrecht, NL, from Dutch asset and investment manager PingProperties. The acquisition cost was €47.6 mln.
The Jacobsweerd building is currently majority leased to four Dutch Government agencies—the Dutch Governmental Real Estate Department, the Dutch Chamber of Commerce, the Bureau for Information on Labor and Income and the Information Bureau. The leases are guaranteed by the Government of the Kingdom of the Netherlands, which is rated Aaa Stable by Moody's, AAA Stable by Fitch and AA+ Positive by S&P.
The property is located in the CBD of Utrecht, close to the largest and busiest train station in the country, as well as the city's main shopping area. The fourth largest city in the Netherlands, Utrecht is regarded as the most central and is a 28-minute train ride from Schiphol International Airport. With a vacancy rate of 7%, the CBD of Utrecht represents a strong cluster of prime offices and a solid pool of high-grade tenants, making it an important location for core assets in the Netherlands.
The 154,900 ft² (approx. 14,390 m²) building was constructed in 1987 and was completely renovated in 2002. Additional work was carried out in 2011 and 2014, ensuring that the building is fitted out to a high standard. The facility meets all of the latest environmental standards, with the majority of it having an energy performance rating ‘A’ and the remainder being classified ‘B.’ The building comprises six storeys and contains 203 underground parking spaces.
The average lease term remaining for the four government tenants is 7.7 years, which compares well to the standard five-year term that is customary in the Netherlands. All four tenants have CPI-indexed annual rent escalations.
Source: W. P. Carey Inc.
