Dutch banks ABN Amro and Rabobank have provided a €180 million loan for a development project in Amsterdam’s central waterfront area on the north bank of the River IJ.
The new facility will finance the so-called Y-Towers, comprising a residential tower and the Maritim Congress Hotel, which are expected to be completed by Q4 2020.
The loan, provided to developers IES Immobilien-Projektentwicklung and INVESTER United Benefits, has a value-to-cost ratio of 70 percent and an “attractive” pricing, a spokesman for IES told Real Estate Capital.
The loan was secured in May and its maturity includes the construction period plus 12 months of sales. Targeted yields of the project were not disclosed.
“A development project is always riskier than purchasing a fully let asset, but we have already covered a large part of the development risk, as the project is fully financed and we have a 50-year contract in place with the German [hotel operator] Maritim Hotelgesellschaft,” said IES owner Markus Teufel.
“Amsterdam has a booming residential sector and is one of the strongest hotel and convention markets in Europe, but it has previously been lacking a large capacity and central venue to meet this demand,” Teufel added.
The 100,000 square metres multi-function development project is currently valued at €360 million. It includes a 110-metres four-star hotel tower offering 579 rooms with a total floor area of 52,000 square metres.
The tower will be the third highest in Amsterdam and will house a conference and congress centre with the capacity to host 4,000 people, making it the second largest in the city, after the RAI exhibition and convention centre.
The 101-metres residential tower, for its part, will accommodate 100 units which will offered for extended stay purposes, plus 150 apartments to sell within the top market segment, covering a total floor area of 24,000 square metres.
“The project Y-Towers represents a major contribution to the future skyline and economic prosperity of Amsterdam, because of its scale, its functions and attraction, and future workplaces it will create,” Franz Kollitsch, co-founder of INVESTER, said.