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.
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, Houthoff Buruma provided legal advice. The Seller was advised by CBRE and Rutger & Posch. The signing and closing of the share deal took place on December 19, 2019.