US private equity firm Highbrook Investors has sold three offices in Amsterdam to Hilltop 4, an investment vehicle managed by Equity Estate and Dubai-based Arzan Wealth (DIFC).
The Quarter Offices portfolio comprises three office buildings – Quarter Podium, Quarter Avenue and Quarter Plaza – totalling 26.150 m² of space and 431 parking spaces, located in Amsterdam’s Sloterdijk district. Tenants include insurance broker Aon and staffing and recruitment agencies DPA, Maandag and Robert Half International.
The deal was effected via a share transaction and although financial details were not disclosed, PropertyEU estimates the initial yield at close to 6%, based on comparable transactions in the Sloterdijk area.
Highbrook acquired the buildings in three separate transactions during the past two-and-a-half years together with asset manager Equity Estate. During this period, the assets were refurbished and repositioned in the market under the Quarter Offices brand, enabling services and facilities to be shared between the three locations. The occupancy rate increased from less than 10% to 86%, with more than 22,000 m2 of space being leased.
Highbrook Investors was advised on the transaction by Cushman & Wakefield and Van Gool Elburg, with Loyens & Loeff acting on the legal side. Hilltop 4 was advised by law firm Van Doorne.
Arzan Wealth and Equity Estate have been active in the Netherlands for over a year. In November 2017, the duo purchased an office building in The Hague from Deka Immobilien for around €40 mln. The acquisition was the first by the Hilltop joint venture, but the third in the Netherlands by Arzan Wealth, a Dubai-based real estate firm regulated by the Dubai Financial Services Authority.