Dutch office REIT NSI has acquired a fully let, 8,315 m2 office building located at Derkinderenstraat 2-24 in Amsterdam West for €23.7 mln.
The building, constructed in 2000, is multi-let to six tenants and has a weighted average unexpired lease term of 5.5 years. According to NSI, the purchase price represents a gross initial yield of 6.0% and a reversionary yield of 7.3%.
'This acquisition emphasises our strong focus on Amsterdam,' said Anne de Jong, chief investment officer of NSI.
'We see multiple ways to add value, from unlocking the reversionary potential to creating additional floor area through redevelopment initiatives. This submarket is transforming rapidly to a multifunctional location and has excellent transportation links. The asset is adjacent to the A10 ring road and nearby station Lelylaan offers train and metro connections, whilst the city centre of Amsterdam is 15 minutes away by bike,' de Jong added.
NSI said that the deal was in line with its strategy to selectively acquire interesting value-add opportunities in growth locations. Following this transaction, Amsterdam will make up 50.6% of its office and flexible space portfolio, compared to 49.8% in December 2018. The transaction will initially push the firm's loan-to-value to 38.5%, but scheduled disposals during the year will bring this value down to the lower end of the target range of 35-40%, according to the REIT.