Avignon Capital and Cedrus Invest Bank acquire creative office building

Avignon Capital, the European property investment and asset management firm and Cedrus Invest Bank, a leading Lebanese investment bank, have acquired a newly-developed creative office building in Amsterdam for €24.4m.

Danzigerkade 16 is a modern and sustainable building, which has been developed to a high ‘Grade A’ specification with an EPC rating of ‘A++’, providing workspace for businesses in the creative sector.

The building was completed and delivered to the tenants for fit-out works in June 2018 and includes app-based technology throughout the building for access. The building is multi-let to a number of creative tenants including ROOFF and CLUSE. The 6,650 sqm building is located in the up-and-coming area of Houthaven in Amsterdam West, an area currently undergoing significant regeneration which has established itself as a creative hotspot, housing several major advertising agencies and clothing brand headquarters, such as Tommy Hilfiger, Calvin Klein and Hugo Boss.

Following a construction freeze in 2011 for new office developments in Amsterdam, there has been a decrease in vacancy and a constraint on supply; consequently, locations such as Houthaven are now eligible for new developments to meet occupier demand.

Houthaven is expected to experience rental growth in the coming years, due to the increasing attractiveness of the area and demand from a broad range of occupiers.

This deal marks Avignon Capital’s fourth acquisition in the Netherlands, following the purchase of the NH Hotel, Hyatt Place Hotel and Organisation for the Prohibition of Chemical Weapons (OPCW) in 2017. The firm has identified the Netherlands as a focus area within its European investment strategy, where it sees multiple real estate investment opportunities across a variety of sectors.

Phil Walker, Senior Investment Manager at Avignon Capital, said: “The Amsterdam office market continues to be of interest and this acquisition offers us the opportunity to acquire a brand-new building in a developing area of Amsterdam at a significant discount to prime rents and yields. We will be able to take advantage of the positive market developments in Houthaven coupled with increasing occupier demand.

The building is located in an up-and-coming ‘live-work’ creative hub in Amsterdam – an area that is set to become one of the most attractive locations in Amsterdam. The full development of the Houthaven area is expected to complete in 2021 but has already attracted global brands such as Tommy Hilfiger, Calvin Klein and Marriot’s first Moxy’s hotel in Holland. This transaction represents Avignon’s ability to identify high-quality assets in strong performing cities with excellent fundamentals.”

Avignon Capital and Cedrus Invest Bank were advised by Pierce Capital Investments as local structuring partner and Haagstate Advocaten for the deal.