European investment fund manager, DRC Savills Investment Management LLP (“DRC SIM”), has provided a substantial mezzanine loan to finance Victory Group’s (“Victory”) landmark EUR 765m purchase of ABN AMRO’s global head office in Amsterdam in December 2021.
The 950,000 sqft office asset is located in the core of the Zuidas business district in southwest Amsterdam and is entirely leased to ABN AMRO. The sale by ABN AMRO is understood to be the largest single asset real estate transaction ever in The Netherlands, at the time of sale.
As a component of the acquisition process Victory considered the wishes of the city of Amsterdam with regard to the future vibrancy and diversity of the Zuidas business district. Victory are partnering with G&S Vastgoed to execute their delivery of a more sustainable, integrated and future proof mixed-use re-development of the complex, with strong ESG credentials facilitated by the Sponsor’s capex program and in line with key sustainability and innovation principles for the continuing regeneration of the local area.
ESG improvement of the asset was a key consideration for DRC SIM when making its investment decision. DRC SIM delivered financing within a short timeframe and was able to provide certainty of delivery through its fully discretionary managed vehicle; ERED IV.
DRC SIM is a market leading commercial real estate debt platform dedicated to lending across the capital structure in the UK and Western Europe. DRC SIM has invested more than half a billion Euros of capital in commercial real estate lending in the Netherlands over the last 3 years.
A team from Simmons & Simmons LLP advised DRC SIM on the transaction. Additionally, commercial advice was provided by Mount Street Mortgage Servicing Limited, Colliers International, Watson Laurie and Drees & Sommer.