Increasing attention from Asian investors

In February 2015, the First Sponsor Group Limited, an institutional investor from Singapore, acquired a building on the Zuidas along with multiple Singapore-based private investors. According to the real estate consultancy CBRE, the purchase of the Zuidas building is “the first direct acquisition by an Asian investor into commercial real estate in the Netherlands.” In a statement, CBRE notes that “the interest of Asian investors in Dutch real estate is growing, with increasing numbers expressing a desire to buy offices, shopping centres and residential property. It is expected that more Asian investors will follow First Sponsor Group’s lead.”

Amsterdam’s charm

The choice for real estate in Amsterdam’s Zuidas business district is a sensible one, as the Zuidas continues to outperform many other key office locations in the Netherlands in terms of occupancy rates. The recent purchase of the First Sponsor Group illustrates an ongoing trend of increasing international attention for Dutch real estate. Last year, the real estate convention PROVADA hosted an international day intended for investors from around the world, which, among others, accommodated a considerable Asian delegation visiting the convention. Amsterdam’s charm for investors in real estate lies in the fact that at the moment, real estate is still competitively priced and the city also hasn’t lost its charm for either tourists or international businesses.