Union Investment picks up Amsterdam canal office for €142m

German asset manager Union Investment has acquired the 5 Keizers office property in Amsterdam from a fund affiliated with MCAP Global Finance (UK), the European subsidiary of New-York headquartered Marathon Asset Management, for €142 mln.

'The Netherlands is currently one of the most attractive real estate markets in Europe. The acquisition of the 5 Keizers property represents a rare opportunity to invest in Amsterdam’s historic canal district,' said Martin Schellein, head of investment management Europe at Union Investment Real Estate.

'Up to now, our holdings have primarily been located in the city’s modern South Axis business district. This new transaction expands our investment footprint and we are confident that the property has the potential to provide us with strong, sustainable rental income.'

The asset consists of five separate properties offering a total of around 15,000 m2 of rental space. The buildings were constructed between 1955 and 1967 and upgraded between 2014 and 2016.

The property at Keizersgracht 271-287 is currently used by six tenants from a variety of sectors, with an occupancy rate of 62% at the time of acquisition. Union Investment said it saw good opportunities for efficiently increasing occupancy.

Union Investment will add the property to the holdings of its open-ended real estate fund Unilmmo: Deutschland, thereby expanding the fund’s Amsterdam portfolio, which already includes the corporate headquarters of Akzo Nobel and the Crowne Plaza Amsterdam Zuid hotel.

Following this acquisition, Union Investment’s real estate funds hold 15 properties in the Netherlands across a variety of use types and with a total value of some €1.3 bn. Amsterdam accounts for 10 properties worth around €900 mln.

'We are delighted to have completed the transformation of this unique asset over the last three years together with our asset managers at Cording Real Estate Group,' said said Jochen Kauschmann, head of asset management at Marathon.

Union Investment was advised on the deal by Cushman & Wakefield, Drees & Sommer and Dentons. The vendor was advised by Savills and Loyens & Loeff.


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