NSI N.V. has acquired a 12,700 m² office building on 43-117 Kingsfordweg in Amsterdam. The building is let to eight different tenants spread over 15 floors with a WAULT of 3.4 years until first break and has an A-label energy score. The EPRA vacancy of 24.7% and 10.2% reversion potential on current leases offers ample opportunity to add value to the asset. The acquisition price (excl. purchase costs) of €36.8m represents a gross initial yield of 4.9% and a reversionary yield of 7.1%.
The deal fits perfectly with NSI’s strategy to focus on the G4 and especially Amsterdam. Following this transaction, Amsterdam will make up 46% (from 44%) of the Offices and HNK portfolio. The pro-forma LTV will increase to approximately 39.1% from 36.9% at the end of December 2017. Taking into account recent and scheduled disposals the LTV is set to fall back below 37% by the end of June 2018.
Anne de Jong, CIO of NSI comments: “This is an excellent investment with multiple opportunities for value-add initiatives. We are very enthusiastic about the Sloterdijk area as the on-going transformation into a multi-functional area is creating a more dynamic and attractive office market. We are also particularly pleased that in the asset rotation to a better quality, more concentrated portfolio we are so far proving able to identify assets with net yields not too dissimilar to the yields we are selling at”.