NSI acquires office and laboratory building in Leiden Bio Science Park
NSI N.V. has acquired a 2,686 sqm office and laboratory building located at Archimedesweg 30 in Leiden in a sale and lease back construction with Genencor International B.V., part of DuPont. DuPont will lease the entire property for a period of 1.5 year, before moving to a new, larger, office in the area. The building was constructed in 1999 and has an A-label energy score. The acquisition price (excl. purchase costs) of € 5m represents a gross initial yield of 10.5% on the contracted rent.
The deal fits NSI’s strategy to selectively expand its exposure to the Leiden Bio Science park. Following this transaction, Leiden will make up 5.3% (Dec 18: 4.9%) of the Offices and HNK portfolio. The transaction will initially push the LTV to 37.2% and will be financed out of our running cashflow.
The building is relatively small, but because we already own multiple properties in the area, among others the adjacent building, it increases our critical mass in this market. We are positive about Leiden, partly because its central location nearby The Hague, Amsterdam and Schiphol airport. Furthermore, Leiden Bio Science park has a vacancy less than 1% which we believe will underpin rents in the long run.
NSI N.V. (Euronext: NSI / NL0012365084) is a specialist commercial property investor and the only listed real estate investment trust (REIT) focused on well-located offices in economic growth regions in The Netherlands. The NSI team aims to maximise returns for its shareholders through pro-active management of its investment portfolio, value-add initiatives, and disciplined asset rotation. The portfolio, with a value of over one billion euros, is underpinned by a strong balance sheet, with significant capacity to fund both internal and external growth. By investing in attractive space and a high level of services for its customers, NSI can generate sustainable and growing revenues to support an attractive level of dividends. For more information visit our website: www.nsi.nl.