NSI has acquired a 16,312m² office building at Radarweg 60 in Amsterdam Sloterdijk. Known as Motor Building, the asset is multi-let to nine tenants spread over 10 floors with a WAULT of 2.3 years and has an A-label energy score. The EPRA vacancy is 29%. The acquisition price (excl. purchase costs) of €47.3m represents a gross initial yield of 4.7% and a reversionary yield of 7.2%. The large car park at the back of the building may facilitate a sizable development in the medium term.
The deal fits with NSI’s strategy to focus on the G4 and especially Amsterdam. Following this transaction, Amsterdam will make up 55% (from 53% Jun ‘18) of the company's offices portfolio.
Anne de Jong, CIO of NSI comments: “We see multiple opportunities to create value, from leasing up vacancy to large-scale development in the future. Motion building is our third major acquisition in the vicinity of the Sloterdijk railway station since 2016. This area with excellent accessibility is transforming rapidly into a mix-use district. Circa 40,000 new residential units will be developed and significant investments in infrastructure like the train station, metro network and public spaces are planned. The Sloterdijk submarket is expected to see further rental growth as there is an increasing shortage of good quality office space in Amsterdam”.
