NSI acquires ONE20 office building in Amsterdam
NSI N.V. (Euronext: NSI / NL0012365084) - Regulatory news
On March 6 NSI N.V. irrevocably agreed to acquire the 9,743 sqm ONE20 office building located at Teleportboulevard 120-142 in Amsterdam-Sloterdijk. The asset was transferred to NSI on March 26. The building is currently let to four tenants and has an EPRA occupancy rate of 69%, with a WAULT 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 acquisition price (excl. purchase costs) of € 34.0m represents a gross initial yield of 3.5% (4.1% on July 1) and a reversionary yield of 6.3%. Strong demand for modern office space in Amsterdam-Sloterdijk in recent years has resulted in an overall vacancy rate of below 5% for the area and an average vacancy rate of 1.5% for the four NSI assets in this submarket. Due to the healthy underlying market dynamics rents of in excess of € 200 per sqm have already been achieved.
The deal fits NSI’s strategy to selectively acquire interesting value-add initiatives and to create attractive clusters around major public transport hubs. Following this transaction, Amsterdam will make up 55.5% (Dec 19: 51.0%) of the Offices and HNK portfolio.
Ahmed Ouahim, Head of Transactions of NSI comments: “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”.
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.