Cromwell E-Reit secures new 15-year lease at Netherlands property
Daphne Yow
CROMWELL European Real Estate Investment Trust (Cromwell E-Reit) has secured a new lease with a global asset management firm at its Haagse Poort office building in The Hague, Netherlands.
The 15-year lease is for an estimated 10,000 square metres of space, with a tenant-only break option at the 10th year, its manager said on Thursday (Jul 27).
The unnamed global asset management firm will take over the space from the current biggest tenant-customer, Nationale Netherlanden, when the latter’s lease expires in two years’ time.
Simon Garing, the manager’s chief executive, said that Haagse Poort is Cromwell E-Reit’s biggest Grade-A office asset comprising about 7 per cent of its portfolio, and it will stay at 99 per cent occupancy after the new lease.
The 16-storey Haagse Poort has been in Cromwell E-Reit’s portfolio since the Reit’s listing. It was recently refurbished with upgrades to its high-rise entrance lobby and its elevators, along with the installation of a new green biophilic area and restaurant.
The asset is located in Beatrixkwartier, The Hague’s central business district, which is one of the best-performing office locations within the country. Garing also flagged the possibility of building in further rent flexibility for Haagse Poort, although this would depend on the level of energy efficiency obtained by the building.
The Netherlands is a core market for Cromwell E-Reit, comprising 27 per cent of its total portfolio and 49 per cent of its office portfolio as at Jun 30.
“As occupiers seek higher-grade, modern spaces in core locations, we will continue to proactively dispose of non-core and non-strategic assets to recycle into select asset enhancement and redevelopment initiatives to optimise our office portfolio’s long-term rental income and value,” he said.
Units of Cromwell E-Reit were trading flat at S$2.34 as at 11.09 am.
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