NSI buys Amsterdam office scheme for €34m

Dutch listed property firm NSI has agreed to acquire the 9,743 m2 ONE20 office building located at Amsterdam-Sloterdijk for €34 mln, representing a gross initial yield of 3.5% and a reversionary yield of 6.3%.

The building is currently let to four tenants and has an EPRA occupancy rate of 69%, with a weighted average unexpired lease term of 4.0 years. With an additional lease already signed, the occupancy rate will improve to 76% and the WAULT to 5.7 years, on July 1. The building, constructed in 2001, has an A-label energy score.
 
The deal fits NSI’s strategy to selectively acquire interesting value-add initiatives and to create attractive clusters around major public transport hubs, the company said in a statement. Following this transaction, Amsterdam will make up 55.5% of NSI’s office portfolio, up from 51% at year-end 2019.

Ahmed Ouahim, head of Transactions of NSI commented: ‘ONE20 is located next to both the Glass House and Q-port buildings and so it further cements our position in this strong sub-market of Amsterdam. The Sloterdijk submarket is transforming rapidly to a multifunctional location with excellent transportation links, including Amsterdam’s second busiest train station. The building offers great value-add potential through letting up the remaining vacancy and capturing the potential reversion in existing leases.’