AVIGNON CAPITAL ACQUIRES FIRST DATA CENTRE IN AMSTERDAM
London, 18 March 2020 – Avignon Capital, the European investment and asset management firm has acquired a data centre in Amsterdam for €11.55 million.
Currently let on a long-term lease, Avignon saw the opportunity to invest in a fully let asset which benefits from annual CPI uplifts. Additionally, the tenant is a global brand and one of the largest providers of telecoms in the Netherlands.
The 7,450 sq m building is situated in Amsterdam-West, close to the A10 ringway which provides direct access to Schiphol Airport within 15 minutes.
Demand has been high in Amsterdam for data centres, driven by the continued drawdown of space and power resulting from the local presence of large cloud services companies.
The majority of Dutch data centres are located in Amsterdam and the Netherlands is considered to be one of the Tier 1 markets for European data centres alongside London. The Amsterdam Metropolitan Area also recently announced a moratorium on the establishment of new data centres in Amsterdam, making this a rare opportunity in high demand and limited supply.
Avignon has long seen Amsterdam as a highly attractive market, being one of the best-connected cities in Europe in high demand. This latest acquisition will be a valuable addition to Avignon’s current Dutch portfolio.
Jack Pearce, Investment Analyst at Avignon Capital said: “We are pleased to have acquired this property at a time where supply for this kind of asset is limited but demand remains high in Amsterdam. This property benefits from a globally operating tenant, providing strong security of income. Coupled with the general backdrop being supportive of data centre assets, we anticipate that this will provide attractive income returns.”
Avignon Capital was advised by Westview Capital Advisers, Haagstate, The SLK, Savills and AC Nielson. The seller is Somerset Capital Partners, who was legally advised by SOLID.Attorneys.