AB European Real Estate Fund acquires prominent Global Insurer building

AB Alternative Fund SICAV-SIF has completed its fourth acquisition in the Netherlands, with the purchase of an attractive office building located in the city of Leeuwarden.

The city of Leeuwarden is the capital of Friesland in the Northern part of the Netherlands and plays a central administrative role in this province. It is the second largest office city in the North and was designated as the European Capital of Culture in 2018.

The acquired office building was designed by renowned Dutch architect Abe Bonnema. It also underwent a complete renovation in 2016 bringing it up to code with the latest contemporary standards for modern office space. It consists of 11,846 LFA sqm of office and archive space and 73 parking spaces.

Aegon N.V., a global life and health insurance company is the sole tenant. It was founded in 1983, it is listed on the Amsterdam Stock Exchange, employs 31,500 employees globally, and 4,300 employees in the Netherlands. The company is currently rated “A-“ by Standard & Poor’s.

This transaction was financed through both equity and the takeover of existing debt. The fund secured the debt takeover from Postbank – a subsidiary of Deutsche Bank – with a very competitive interest rate.

 

Daniel Deléchat, Head of Asset Management at Arab Bank (Switzerland) Ltd., concludes: “This acquisition bolsters the performance of the portfolio through acquiring a modern building, which is attractive both visually and in terms of financial performance. The attributes of the building, the tenant and the micro location are a perfect fit for this portfolio!”

In this transaction, the Fund was advised by Savills Investment Management, Volcrick & Associates, and HVG Law LLP. Savills Investment Management will be responsible for the asset management of the property.