Institutional real estate investment manager Bouwinvest’s Dutch Office Fund has acquired the World Trade Center in Rotterdam and the iconic “Citroën buildings” in south Amsterdam as part of its strategy to diversify its portfolio across the major cities in the Randstad conurbation of the Netherlands. The two deals, which were signed towards the end of last year, take Bouwinvest’s total investments in its Dutch real estate funds to €627.5 million and overall globally to €1.16 billion in 2014.
Allard van Spaandonk, Director for the Netherlands at Bouwinvest, said: “The Netherlands has been memorably referred to as ‘the graveyard of European offices’ due its high vacancy rate, but these acquisitions show that there are flowers blooming among the headstones if you know where to look. They both have multi-tenant and multi-functional characteristics, key requirements for our office fund to insulate its investments against rapid changes in demand for business space. They are also located in the two largest Dutch cities and office markets.”
The WTC Rotterdam was purchased from listed holding company Beurs-WTC, which is 50%-owned by the city’s municipality. The building comprises around 37,000 sqm of offices, a 7,000 sqm congress and events centre, 8,000 sqm of retail space divided into 29 shops, as well as 2,000 sqm for other commercial uses. It also provides 467 underground parking spaces.
The WTC building’s shopping units will transfer to Bouwinvest’s Dutch Retail Fund, since they match the investment profile of the portfolio, namely assets in prime shopping locations in major cities.
The two Citroën buildings are next to Amsterdam’s 1928 Olympic Stadium and were acquired from Citroën Nederland. The purchase allows Bouwinvest to add to its significant portfolio in this historic district, which includes the commercial space within the stadium located at the southern gateway to the city.
The buildings have a combined area of 25,000 sqm and will be redeveloped for multifunctional office, retail and restaurant/café use, in line with the investment strategy of the Office Fund. The refurbishment project will be conducted in close cooperation with the municipality of Amsterdam to preserve the important architectural features. Construction is scheduled to start after the European Athletics Championships, which are being staged in the neighbouring Olympic Stadium in early July 2016, to avoid disrupting the event and is due for completion a year later.
The earlier Citroën building was constructed between 1930 and 1931, featuring a concrete skeleton and large windows to allow in plenty of light for the French car company’s offices, showrooms and workshops. It was designed by Jan Wils, the renowned Dutch architect of the Olympic Stadium, who drew up the plans for the second Citroën building in the early 1960s. Both structures show the clear influence of the “greatest American architect” Frank Lloyd Wright, whom Wils admired ardently.
Bas Jochims, Portfolio Manager for the Bouwinvest Dutch Office Fund, said: “We leapt at this unique opportunity to transform two landmark Amsterdam buildings into modern and attractive working space, while strictly preserving their historic characteristics. They are a beautiful addition to Bouwinvest’s Office Fund and complement our existing office assets in the neighbouring Olympic Stadium in this easily accessible location that defines Amsterdam’s southern gateway.”
