AEW snaps up Amsterdam office in value-add play

Global investor AEW has purchased an office asset in Amsterdam from Dutch property company Midvast in an off-market deal.

The property at De Ruijterkade 139 is located in Amsterdam's city centre, adjacent to the Central Station.

Financial details were not disclosed but Dutch land registry records reveal a purchase price of €13.6 mln.

'We are very excited with this off-market opportunity brought to us by CityState,' said Frédérique Weber, country manager for the Netherlands at AEW.

According to AEW, the asset was built in 1915 as the harbour office for Amsterdam’s IJ harbour and retains many period features. It comprises 2,142 m2 of total lettable space, spread over four floors and a basement.

'This is a prime acquisition in a strong micro-location at a time when rising demand is being met by dwindling supply, which in turn is driving rental growth,' Weber added. 'We will turn this asset into a unique and high quality property meeting tenants’ demands that will deliver attractive and sustainable income, as well as capital growth, on behalf of our client.'

AEW said the full refurbishment would take some 12 months, taking advantage of the asset's 100% vacancy.

According to the firm, the demand for office space in Amsterdam has grown significantly over recent years, leading to a shortage of available high quality space in the Dutch capital, where vacancy rates are at a record low of 2.2%.

AEW was advised by CityState, Savills Building and Project Consultancy and Loyens & Loeff, and the vendor by JLL and Labré.

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