NSI in short


At the start of 2017 NSI presented a new strategy in which focus is central.

  • At NSI we aim for the highest possible risk-adjusted total return
  • NSI focuses on investing in office buildings
  • NSI invests in seven target cities, where we expect above average economic growth
  • NSI has an active investment policy where we add value to our properties through repositioning and redevelopment

Asset rotation

In order to become a focussed REIT, the retail properties, smaller offices and offices outside the target cities will be sold. The disposal proceeds will be reinvested in much larger office buildings in for example Amsterdam and Utrecht.

In recent years, NSI has sold more than €500 million worth of properties in more than 150 deals and has bought 20 assets for over €550 million.

Portfolio 30 June 2019

Dispositions 2016 – June 2019

This makes NSI one of the most active investors in the Dutch real estate market

NSI’s portfolio is increasingly focusing on Amsterdam and the four largest cities in the country.

Portfolio split

Due to active asset rotation, 47% of the €1.3 billion in properties are now located in Amsterdam and 84% in the four major cities. About €130 million is still non-core, which will be sold in the coming years. At the end of June 2019, €107 million of these were shops and industrial. To a large extent, the proceeds will be used to finance the development pipeline.

We expect that by selling our non-core properties and by developing new office buildings in the coming years, 60-80% of our future portfolio will be located in Amsterdam.

NSI has a development pipeline in Amsterdam of more than € 300 million

Project development

In addition to investing in offices, NSI is also active in developing new buildings for the portfolio. NSI has a €850 million development pipeline, with the majority located next to major train stations in Amsterdam. At the moment, we are working with ING on a new office building in Amsterdam Southeast, neighbouring ING’s new Global HQ.

The existing building of approximately 13,000 square meters will be demolished to make way for two new buildings of in total 35,000 square meters. The new development will fit perfectly within the new ING campus. This project involves a total investment of approximately €120 million.

NSI currently has a development pipeline of more than €850 million, and will become one of the largest office developers in Amsterdam in the coming years. 

HNK – NSI’s in-house flexible office concept


HNK is NSI’s in-house flex-office concept. We have been active in this upcoming trend within the office market since 2012. Flex offices now represent only 5% of the floor area in the Dutch office market. A sharp rise is expected in the coming years. Initially, it was predominantly the self-employed who where in need of flexible lease contracts and a full-service office solution. Nowadays, there are many large corporates who are settling in at an HNK, due to the good services and trendy look.

Currently, the 14 HNK properties represent approximately 17% of NSI’s property value.

HNKs are characterized by a large lobby on the ground floor with a reception and meeting rooms, just like you are used to in hotels

NSI has a strong balance sheet


NSI has a LTV target range between 35% and 40%. At the end of June 2019, the LTV was 33.7%, and this will be reduced further proir to the comencement of NSI’s first development project

Loan to value

NSI has a defensive financing strategy. The capital structure must support the real estate strategy at all times and never the other way around.

This means that if more development risk is taken, or if operational risk increases due to a relative rise of HNK activities, the financing risk must be reduced. We expect this to optimise the total return throughout the cycle.

Cost of debt

In 2018, 90% of the debts have been refinanced and, in addition to lowering the interest costs, the average duration of the loans has been extended to 5 years.

Interest costs

In recent years, NSI’s cost of debt have fallen sharply, from above 5% to 2% at the end of June 2019. On the one hand, because of falling interest rates. On the other hand, because of NSI’s improved risk profile. Since 2018, NSI has had an ‘implied investment grade credit rating’, making us an attractive partner for large institutional investors to lend money to.

In the coming period, we will actively look into whether the current low interest rates can be used, in order to further extend the average loan duration and to further diversify the debt providers.