Allianz and ABN Amro back Dutch office deal

The pair provide a €300m seven-year senior debt package to finance The Atrium complex.

Allianz Real Estate and ABN Amro have written a €300 million loan, which is likely to be the largest single-asset financing in the Dutch office market this year.

The lenders have provided a seven-year, fixed-rate senior debt facility, to fund the acquisition of The Atrium office complex in Amsterdam by a consortium composed of Amundi Real Estate and Korean investors. The group acquired the complex in April for around €500 million, according to local media. The purchase price would imply a loan-to-value ratio of around 60 percent.

Allianz took a majority participation in the facility, while ABN Amro acted as sole placement and facility agent.

The Atrium, an office complex of around 60,000 square metres consists of a renovated building constructed in 1976 and two new towers, located in the Zuidas business district of Amsterdam. The South Tower was delivered in June this year, while the North Tower was delivered at the end of October.

“The complex is very attractive. We had a lot of offers to finance this investment, particularly from Dutch and German banks,” Hubert Joachim, deputy chief investment officer at the property arm of Amundi told Real Estate Capital.

Following the UK’s vote to leave the EU, investors are “more cautious” about the London office market, Joachim explained, while the Amsterdam market is gaining appeal on the back of its “strong” economic growth and political stability. The city is also well connected to the rest of Europe, on the back of its existing infrastructure, he added.

“The asset is well-located and has very high expectations for rent growth,” Joachim said, adding that rents of prime office space in Amsterdam’s south Axis sub-market are currently between €355 and €400 per square metre per year on average.

Joachim declined to disclose the pricing of the loan. Typical senior margins for Dutch prime offices are at 1.3 percent, according to CBRE’s data.

“Allianz is able to take large ticket sizes, either alone or alongside well-known partners like ABN Amro,” said Roland Fuchs, head of European real estate finance at Allianz.

 

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