US REIT NorthStar Realty Europe has exited the Netherlands with the sale of the tallest office tower in the country, the Maastoren, to a joint venture between FOM Real Estate, Asia Pacific Real Estate and Coquine SA.
Financial details were not disclosed, but NRE said it expects to release approximately €50 mln of net equity after repayment of financing (including release premium) and transaction costs.
Maastoren was office-focused NRE’s largest remaining non-core asset.
'We are pleased to have completed the sale of Maastoren at a significant premium to the valuation preceding the lease extensions,' said Mahbod Nia, NRE's CEO and president. The last valuation was carried out in June 2017.
'Our ability to materially enhance the value of this asset prior to sale is a reflection of our continued commitment to active asset management as we seek to generate value for our stockholders.'
Investors looking beyond Amsterdam
NRE acquired the 44 floor, 165-metre-high office building in Rotterdam comprising a total floor area of approximately 38,000 m2 and 639 parking spaces in an indoor parking garage, in December 2014.
Some 70% of the office building is leased to Deloitte and AKD on a long-term basis. In the second half of 2017, both parties extended the lease agreements in the Maas Tower for the long-term. International real estate advisor Cushman & Wakefield supervised the sale on behalf of NRE.
'The successful sale of the Maas Tower is an indication of the increased investors' appetite for the Rotterdam office market in the current hunt for yield,' said Boris Ziermans, international partner at Cushman & Wakefield. 'The current yield spread between high-quality offices at attractive locations in the four major cities imply that beyond Amsterdam, core investors will increasingly focus on cities such as Utrecht and particularly Rotterdam and The Hague.'
NRE was legally supervised by Clifford Chance.
The buyer was advised by Cornerstreet Capital on the deal, with legal advice from Loyens Loeff.