NSI has acquired a 6,635 m² office building on Kennedyplein 101 in Eindhoven. The building is fully let in line with market rents to a total of six tenants with a WAULT of 3.6 years. The building has a B-label energy score. The purchase price (excl. purchase costs) represents a gross initial yield of 9.0%.
The deal is in line with NSI’s strategy to focus on larger office assets in major cities. Post this transaction, NSI’s seven target cities (G4, Eindhoven, Den Bosch and Leiden) represent 79% of the Offices and HNK portfolio.
The acquisition will be financed with a combination of cash from disposals and existing credit facilities. The pro-forma LTV will increase to approximately 39.0% from 38.1% at the end of September 2017.
Anne de Jong, CIO of NSI comments: “This asset provides us a unique investment located directly next to the entrance of Eindhoven Central Station. We are positive about Eindhoven, which has been named one of the most innovative cities in the world and continues to show strong economic growth. We expect market conditions in Eindhoven to steadily improve due to a low vacancy rate and increasing demand in the region. Moreover, the building offers multiple options for value-add initiatives including HNK.”
