CORESTATE has for the first time acquired a property for the large Danish pension and insurance company PFA Pension via its subsidiary Hannover Leasing and will also be responsible for the asset management. The property is the New Babylon office complex in the heart of The Hague in the immediate vicinity of the central railway station and, from 2020, also the Dutch parliament. The New Babylon was built in 1978 and had been extensively renovated and repositioned in 2012. Its iconic design makes it one of the most striking buildings on The Hague skyline.
Frankfurt, December 20, 2019. CORESTATE Capital Holding S.A. (CORESTATE), a leading independent investment manager for real estate in Europe, has for the first time acquired a property for the large Danish pension and insurance company PFA Pension via its subsidiary Hannover Leasing and will also be responsible for the asset management. The property is the New Babylon office complex in the heart of The Hague in the immediate vicinity of the central railway station and, from 2020, also the Dutch parliament. The New Babylon was built in 1978 and had been extensively renovated and repositioned in 2012. Its iconic design makes it one of the most striking buildings on The Hague skyline.
CORESTATE CEO Lars Schnidrig: “Within a very short time, we have acquired numerous prominent commercial properties in the Benelux for our institutional clients and demonstrated our regional expertise. We have now gained a significant new institutional client in PFA Pension, the largest Danish pension fund and the fifth largest in Europe. I am convinced that this prominent office investment will prove to be a highly attractive investment for PFA Pension, especially due to our active local management.”
“Part of our investment strategy is to increase our property investments outside of Denmark, and with this in view this property fits in perfectly. The property is located in a unique position in the Hague and supports our focus on Western European markets where we are expecting a continued substantial leaseholder and investor demand. Overall, it is an attractive and long-term investment, which will be a strong supplement to our existing portfolio of housing and commercial properties in Denmark and abroad,” says Michael Bruhn, Executive Property Director, PFA.
The New Babylon has more than 40,000 m² of total rental space. Due to the increasing interest of international companies in this location and the future proximity to the Dutch parliament, vacant space (18%) in particular offers strong potential for rent increases. The annual rent at full occupancy is just under EUR 10 million. The current tenant mix is first-class, diversified and committed for many years with a large number of international and national quality companies from the business services, research/technology, industry and raw materials sectors. The main tenants are TNO (research organization of the Dutch government), Property Works (provider of co-working space) and NLO (patent law firm). The seller is Icon Real Estate, which has significantly developed the property into a full-service complex with a large conference and meeting center, state-of-the-art fitness facilities and a wide range of restaurants. Colliers International acted as the broker on the buyer side. The signing and closing of the share deal took place on December 19, 2019.
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
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