Equity Estate acquires warehouse building in Moordrecht

18-12, 2017

Equity Estate has further expanded the Propco portfolio by acquiring a warehouse building with offices, located at the Zuidbaan 525-527 in Moordrecht.

The buildings, that originates from 2007, are purchased from and leased to Gouda Constructie B.V., a welding and construction company, at a long-term lease contract, and partly leased to Vitamine & ZO B.V., a fresh fruit delivery company. The buildings consists of approximately 4,500 m² of warehouse space, 600 m² of office space in total and paved outdoor area with 80 parking spaces. The property is located on business park “Gouwe Park” directly adjacent to the A12 and A20 motorways.

After the acquisition of four industrial/logistic buildings, in Dordrecht, Rijnsburg, Beuningen and Amsterdam this is the fifth industrial/ logistics acquisition in 18 months’ time. The intention is to expand the Propc portfolio with EUR 30 to 50 mio in 2018, with industrial and logistics buildings with long-term leases on strong locations.

Abram Makelaardij advised Beheermaatschappij Tergouw B.V. in the deal. Equity Estate was represented by Industrial real estate partners , and Van Benthem & Keulen acted as a legal advisor.

HighBrook Investors extends lease agreement Mercurius Offices Almere

7-11, 2017

HighBrook Investors, a New York based real estate private equity firm, has secured a seven years lease extension with Roche Diagnostics Nederland BV and Roche Diabetes Care BV in office building Mercurius in Almere. Roche leases approximately 4,000 m2 office spaced dived over four storeys of the building located at Transistorstraat 41 in Almere.

Mercurius is a modern and comfortable office building located in business park Gooise Poort in Almere. Business Park Gooise Poort is a park-like location through water structures and gardens. The accessibility is excellent, right on highway A6.

HighBrook Investors acquired office building Mercurius in December 2016 as part of the acquisition of their first Hanzevast office portfolio. At the time of the acquisition, in which Equity Estate acted as advisor to HighBrook Investors, the lease agreement with Roche was close to expiration.

HighBrook Investors was advised by Zuiver Almere Vastgoed Adviseurs and Equity Estate in this leasing transaction. Roche is advised by international real estate advisor Cushman & Wakefield.

Hill Top 3 acquires NWO building in The Hague

1-11, 2017

Hill Top 3 Ltd, an investment vehicle arranged and managed by Equity Estate and Arzan Wealth (DIFC) Limited from the Middle East has bought the office building let to ‘Nederlandse Organisatie voor Wetenschappelijk Onderzoek’ (NWO) in The Hague. Equity Estate is also co-investing in the venture. For Arzan Wealth this is the third acquisition in the Netherlands and the first in its new joint venture with Equity Estate. Arzan Wealth (DIFC) Limited is a Dubai-based real estate firm regulated by the Dubai Financial Services Authority.

The ‘Java’ office building measures over 13,600 sqm and 176 parking spaces in the underlying parking garage. The building was completed in 2000, has an energy label A and is let to NWO for a long term. Enrico van Erkelens, CEO from Equity Estate: ‘We are happy to add the NWO-building to the portfolio. The building is a perfect fit for the investment criteria of the joint venture between Arzan Wealth and Equity Estate. The long lease term and the strong covenant are important for our long term investments. We see opportunities in the Dutch office market and we would like to invest in this segment with our partners. The Dutch office market offers attractive investments for international investors, especially with an economy growing faster than most of the neighbouring jurisdictions.”

JLL advised the vendor in this transaction. Arzan Wealth and Equity Estate were advised by NL Real Estate, AKD and BDO. Equity Estate will perform the asset management.

HighBrook Investors acquires Blaak 333 in Rotterdam

11-10, 2017

HighBrook Investors, a New York based real estate private equity firm, has acquired Blaak 333 in Rotterdam through an off-market transaction. Blaak 333 is a single-tenant office building located on a prominent location in the Central Business District of Rotterdam. The building comprises 15,575 sq.m office space and is fully let. A purchase price will not be disclosed nor will the name of the seller. This transaction marks HighBrook’s first entry into the Rotterdam market. The firm is actively seeking more value-add opportunities throughout the Randstad area.

Wouter Stevens, Savills Netherlands, comments: “Blaak 333 is a landmark building in an excellent location within the Central Business District in Rotterdam that combines work, shop and living in the inner city. The office is fully let to a single tenant which is rare in the Rotterdam office market. That makes this an excellent investment opportunity with value add possibilities in the improving Rotterdam investment market.”

Savills acted on behalf of the seller in this transaction. Equity Estate acted as advisor to HighBrook Investors and will co-invest in the building. Equity Estate will also perform the asset management.

HighBrook Investors´ is a real estate private equity firm which is focused on value-added opportunities throughout the US and Western Europe. The firm manages a series of closed-end commingled funds and operates throughout its offices in New York, London and Atlanta. HighBrook has been an active investor in the Dutch market and has now closed six transactions totalling over €160,000,000 in aggregate value over the last 9-10 months.

Four new lease agreements in ‘Scheepvaarthuis’ Groningen

9-10, 2017

HighBrook Investors, a New York based real estate private equity firm, has secured four new leases for its multi-tenant office Scheepvaarthuis at Laan Corpus den Hoorn 200 in Groningen realising an occupancy rate of over 90 percent. New tenants in this modern and high quality multi-tenant office are Hofsteenge Zeeman Groep, Datanext, MediaCT and iWink.

HighBrook Investors acquired the Scheepvaarthuis in December 2016 as part of the acquisition of the Hanzevast office portfolio. At the time of the acquisition, in which Equity Estate acted as advisor to HighBrook Investors, the Scheepvaarthuis was fully vacant.

Hofsteenge Zeeman Groep B.V., accountants in the public sector, has agreed on a long term lease of the third floor (640 m2). Datanext, an innovative company in Marketing Automation and Big Data solutions, signed a contract for the lease of office space located on the half of the ground floor (285 m2). MediaCT BV, a leading e-commerce development company for webshops, signed a long term lease contract for the first floor (640 m2) as well as a part of the ground floor (121 m2). iWink, a developer of technology channels for marketing & communication professionals such as websites, intranets, digital newsletters and narrowcasting screens, leases out the second floor of the building (640 m2) as well as a part of the ground floor (121 m2) in the building. In this way, MediaCT and iWink share half of the ground floor of Scheepvaarthuis offering both tenants combined spaces for lunch, meetings, events and recreation.

International real estate advisor Cushman & Wakefield advised HighBrook Investors in all leasing transactions except the lease with Hofsteenge Zeeman Group. MediaCT was advised by Thijssen Vos Bedrijfsmakelaars in Groningen. Hanzevast, the seller of the property in December 2016, assisted in the negotiation of the leases with Hofsteenge Zeeman Groep, iWink and MediaCT.

In 2017 the Scheepvaarthuis at Laan Corpus den Hoorn is fully renovated and transformed into a modern multi-tenant location providing high quality large office floors combined with ‘living room-like’ work areas and meeting rooms. The office comprises approximately 2,675 m2 divided over 4 office floors and a basement. Having finished the asset management plan and realising an occupancy rate above 90 percent from full vacant when acquired, HighBrook Investors has now instructed the sale of the building. Equity Estate acts as advisor to HighBrook Investors in the sale, international real estate advisor Cushman & Wakefield is mandated for the marketing and sales of the property.

Bert van den Hoek joins the Supervisory Board of Equity Estate

9-10, 2017

The shareholders of Equity Estate, specialist in Asset Management and Management Services in real estate, have appointed Bert van den Hoek as a member of the Supervisory Board as of 1 September 2017. The Supervisory Board now consists of Jürgen Lange, former banker with a reputable German bank, Jan Kees Brandse (chairman), Partner at Greenberg Traurig, and Bert van den Hoek.

Van den Hoek (49), is currently a Senior Vice President at Partners Group in London and brings extensive experience in both the international real estate and financial markets to the Supervisory Board. Prior to Partners Group he was a Director at Deutsche Bank Asset Management and, before that, worked at GIC and Morgan Stanley. Mr Van den Hoek studied at the Technical University in Delft and obtained his MBA at the RSM Erasmus University followed by his Master of Real Estate at the University of Amsterdam.

Real Estate Management: from letter-box company to ‘substance of form’

29-9, 2017

Corporate Service Providers poured into fog, which was confirmed by the impact of the Panama Papers. In response to the global outrage that followed, a stricter regulation was soon demanded. Has something changed in the meantime? And does this have consequences for the property industry? Rob de Groot, earlier this year appointed as Director Management Services at Equity Estate, has been very active in the past years as statutory director of Dutch entities for international organisations in the banking, telecommunication and real estate sector. In this article, De Groot indicates the meaning of changing laws in corporate services activities for the real estate sector.

The Netherlands as leader

The Netherlands plays a very prominent role in the world of international (tax) structures. Extensive research shows that The Netherlands is leader as a so-called ‘Conduit-OFC’, a country through which a lot of funds flow. This happens by using Dutch entities (private companies, limited companies, cooperatives, etc.), that are in a legal structure between the ultimate owner and the companies where the activities are actually taking place. As these companies are located in several countries, and because often also more entities are part of the structure, the picture of a cluttered web arises.

Taxability is one of the reasons to build such a web. An organisation can furnish the cost item ‘taxes’ in such a way that savings can be made. The Netherlands is also a much-chosen country because of the good infrastructure, well educated people speaking their languages, the easy accessibility and the many tax treaties.

Real Estate Management and Corporate Services

Also, foreign investors and investments funds buying and managing (Dutch) real estate move with these structures. Dutch companies, directly or indirectly hold real estate in The Netherlands. The Dutch corporate services office manages the company, is usually statutory director, arranges the financial administration, and takes care of the legal and administrative status (corporate housekeeping) of the company. The real estate is managed by an Asset Manager and a local Property Manager. The Property Manager carries out the administration of the real estate and provides the administration to the corporate services office enabling the corporate services office to prepare the final reports and the statutory annual accounts.

The Panama Papers

Certainly, after the start of the crisis in 2008, there has been much going on about the structures that are served by corporate services offices, in The Netherlands in particular the tax routes. For the general public, the Panama Papers formed the journalistic breakthrough. This resulted in a unique event in Dutch politics, the first parliamentary interrogation in which various parties, like representatives from the Dutch Corporate Services sector, fiscal advisors, the supervisor of the Dutch Central Bank and journalists were interviewed under oath as witnesses and experts.

Serious consequences, nationally and internationally

During this parliamentary interrogation the concept ‘substance of form’ was discussed more than once. Companies that are based in a certain country for tax reasons, should have ‘substance’ in that country. If not, their presence in that country is not recognised. To avoid the appearance of the structure only being a structure providing a financial advantage, the Tax Authorities and the Ministry of Finance prepared a list of 10 requirements that a company has to fulfil in order to be seen as a Dutch company and in order to be able to use the treaties network. A substantial effort in the home country is the basis. Thus, it was a requirement that amongst others half of the management has to be living in The Netherlands, the bookkeeping has to be performed in The Netherlands and de bank accounts are to be managed from The Netherlands.

Internationally, the OECD (Organisation for Economic Cooperation and Development) started the BEPS project (Base Erosion and Profit Shifting), an action plan that has to result in globally coordinated agreements to prevent tax evasion by base erosion and profit shifting. The action plan consists of 15 points of action. Although the BEPS action plan is still in an early state of implementation, it is already clear that it will be a global regime, with increased tax risks for organisations that do not commit themselves to these points. Also in these points ‘substance’ plays an important role.

Propco acquires logistics building in Amsterdam from DHG

19-7, 2017

Equity Estate has further expanded the Propco portfolio by acquiring a logistics building from DHG, located at the Galwin 2 in Amsterdam.

The building, that originates from 2003, has been designed by Timmer architecten and is fully and long-term let to IGT Europe BV. It consists of approximately 8,772 m² of warehouse space, 2,857 m² of office space, some 3,000 m² paved outdoor area with 98 parking spaces. Furthermore, the property is located directly adjacent to the A5 motorway.

After the acquisition of three industrial/logistic buildings, in Dordrecht, Rijnsburg and Beuningen, this is the fourth acquisition for Propco in the past 12 months. The acquisition has been made full equity, and the intention is to continue expanding the portfolio in the coming months, with industrial and logistics buildings with long-term leases on strong locations.

Shamrock Vastgoed advised DHG in the deal. Propco was represented by JLL, and Van Benthem & Keulen acted as a legal advisor. Equity Estate is the asset manager and director of Propco.

AB Alternative Fund acquires "De President" in Hoofddorp

3-7, 2017

Nova Capital has sold the "De President" property in Hoofddorp to AB Alternative Fund SICAV-SIF. Equity Estate is an investor in and the asset manager of the AB Alternative Fund SICAV-SIF. The semi open ended fund consists of 7 buildings in Germany, Luxembourg and The Netherlands.

"De President" property is located at the Jacobus Spijkerdreef 20-24 in Hoofddorp and consist of office, storage and logistic space. The total floor area comprises approximately 9,514 sq.m. with 145 parking spaces. The building is fully let to Scotch & Soda. The acquisition price amounted approximately EUR 8.75 million.

Equity Estate acted as asset manager for the purchaser, performed the complete due diligence and directed the negotiations on LOI and SPA. The due diligence partners on buyer’s side were Holland van Gijzen, SGS Search and Hofstede cs. Seller was advised by Cushman & Wakefield and Retail Capital and represented by CMS as a legal advisor.

HighBrook Investors divests office building in The Hague

12-6, 2017

HighBrook Investors divests an office building on the Laan van Nieuw Oost-Indië 123-127 in The Hague to a Dutch private investor. The total floor area comprises approximately 12,936 sq. m. LFA office space, of which 25% is rented to different tenants. HighBrook Investors acquired the office building in December 2016 as part of an off-market portfolio transaction.

Equity Estate advised HighBrook Investors on this transaction together with the legal advisor Van Doorne . CBRE was responsible for the marketing of the building and represented vendor. Pels Rijcken & Droogleever Fortuijn advised the buyer.

With this divestment, it is the sixth transaction of HighBrook Investors in the past six months. HighBrook Investors is a US-based real estate private equity firm with approximately € 1.0 billion in AUM. The firm has offices in New York, London, Newport Beach and Atlanta. The company is actively seeking additional opportunities to acquire well located office assets primarily in greater Amsterdam area, Rotterdam and Utrecht. (www.highbrookinvestors.com).