In compliance with our previous announcement, PPF Real Estate Holding has today purchased 6 office buildings and 1 retail centre from AXA Real Estate, acting on behalf of its German fund AXA Immoselect, for a total investment volume of € 140 mio.
The portfolio consists of approx. 100,000 sq.m. l.f.a. and has a remaining weighted average lease length of approx. 6.5 years and a vacancy rate of around 22%. The gross yield is circa 12%.
The portfolio includes the following properties: Johan Huizingalaan 400 (12,033 sq.m.) and Karperstraat (8,882 sq.m.) both in Amsterdam, Monchyplein in The Hague (6,985 sq.m.), Eusebiusbuitensingel in Arnhem (27,629 sq.m.), Chelsea building in Rijswijk (8,479 sq.m.), Hofplein 20 in Rotterdam (18,878 sq.m.) as well as the retail centre ‘Suydersee’ in Dronten (13,927 sq.m.). In total the whole portfolio comprises 69 tenants, of which 55 tenants are located in the retail centre.
PPF Real Estate Holding currently provides comprehensive services for more than 60 projects and the value of assets under management is approaching EUR 1 billion. The Holding is divided into two units, PPF Real Estate manages projects in selected European countries, and PPF Real Estate Russia is focused on the Russian market.
PPF Real Estate Holding is a part of PPF Group, which invests into multiple market segments such as banking and financial services, insurance, real estate, energy, metal mining, agriculture, retail and biotechnology. PPF’s focus spans from Czech Republic to other Central and Eastern European countries, Russia and across Asia. PPF Group owns assets amounted to EUR 21.5 billion (as of 31 December 2012).
Cushman & Wakefield has commercially advised Seller regarding this transaction, while Houthoff Buruma has been responsible for the legal advice to Seller. Ploum Lodder Princen has legally advised Purchaser and CVO Group has advised Purchaser in relation to the technical due diligence. NL real estate and Knight Frank London have advised PPF Real Estate during the entire commercial process.
Mike Bowden, investment team, Knight Frank, commented; “The Seven Portfolio offered PPF Real Estate Holding a fantastic opportunity to gain entry into the Dutch real estate market. The portfolio provides exceptional value-add potential, whilst generating significant returns from Day 1.”