Geneva, the 11th of March 2024
AB Alternative Fund SICAV-SIF – European Real Estate Sub-Fund (“the Fund”), an open-ended Luxembourg based fund, which invests in commercial real estate in Western Europe, announces the successful disposal of one of the Fund’s assets located in Almere, the Netherlands. The asset was acquired in 2016 and held by the Fund until now.
With Amsterdam city-centre only 20 minutes away, the property is ideally located and encompasses 25’514 sqm of leasable area, fully occupied on a long-term lease by e-commerce specialist 123inkt.nl. It benefits from quick access to the major Dutch logistics corridors, the A6 and A27, with a catchment area of 2.5 million people within a 30-minute drive.
Built in 2003, and further extended in 2007, the asset has been frequently upgraded to meet the most up-to-date institutional standards. It benefits from an EPC A label and includes 20 docks, 280 parking spots and clear height of up to 12 meters.
The asset has been stabilised and a new lease has been signed with 123inkt.nl at the end of 2023. The portfolio management team received several unsolicited offers during summer 2023 after a proper tender, resulting in a swift off-market process with Crossbay, the pan-European last-mile logistics platform incubated by MARK.
The returns on this transaction are outstanding and demonstrate the continued ability of the portfolio management team to deliver strong performance to the Fund’s investors in difficult market conditions. The net levered IRR stands at c. 15% since acquisition and an equity multiple at 2.4x was achieved. This asset had also been a great contributor to the income performance of the fund delivering an average annualised 11.75% cash-on-cash throughout its seven year holding period.
Daniel Deléchat, Head of Asset Management at Arab Bank (Switzerland) Ltd., comments on these excellent results: “The asset in Almere constitutes a perfect example of the fundamentals of our investment strategy : our expertise and knowledge of the logistics sector in the Netherlands helped us extract good value for our investors, especially in a muted market with tough economic conditions.”
Our Asset Manager, Savills Investment Management, and our legal advisors in the Netherlands, HVG Law, advised the Fund on this transaction.
Drag