a.s.r. real estate

Revitalisation of mobility hubs set to unlock value for ASR DMOF

Several mobility hubs in the Netherlands are currently undergoing transformation. Not only are the railway stations of the four largest cities being comprehensively upgraded, but smaller, more regional railway stations are also part of major renovation plans. The government will spend more than €1 billion on Dutch railway stations and the areas surrounding them in the next few years, making them more multifunctional and attractive areas where people can live, work, shop and spend their leisure time. Two examples of mobility hubs undergoing transformations are Utrecht Central Station and Amsterdam Bijlmer ArenA.

ASR Dutch Mobility Office Fund is well-represented in the area of Utrecht Central Station, which will become a genuine Central Business District over the next five to ten years. By adding more residential buildings, a better-quality retail environment and better links to the historical city centre, this area will further improve its position as the Netherlands’ leading mobility hub. Recent lease transactions have already shown that office users are becoming more diverse, and aside from financial institutions, tech companies and flexible office operators are also looking for office space. Although new stock of more than 165,000 sq. m. is expected to become available by 2023, demand is very high and the new stock is largely being pre-let. At the same time, vacancy levels are historically low at just 1.1%.

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Another great example of an office location undergoing transformation is in Amsterdam Zuidoost, in the south-east of the city, also known as ArenAPoort. Europlaza – which is an office building owned by ASR DMOF – is less than 100 meters away from Amsterdam Bijlmer ArenA station in the heart of ArenAPoort. This is a strategic location with plenty of potential for further development. The Fund is currently involved in discussions with the City of Amsterdam and surrounding landlords regarding how it can add value to ArenAPoort through the building that it owns.

ArenAPoort is one of the top-five employment locations in the Netherlands, and is characterised as a particularly economically vibrant area. In the years ahead, it will develop into a modern and lively city district, providing all of the services and functions that a city needs. The municipality’s ambition is to transform ArenAPoort into an attractive, highly urban and attractive residential area.

The Zuidoost location has been through some tough times in terms of urban and social development. And yet, this part of Amsterdam is now one of the most promising locations in the Netherlands, and both the municipality and foreign investors recognize the area’s potential. ArenAPoort is located at the heart of the Randstad and is situated directly on the rail line that links Rotterdam, The Hague, Schiphol Airport, Amsterdam and Utrecht. This ensures excellent accessibility by public transportation, but road links are equally good. 

Market data is demonstrating increased levels of interest from tenants in a range of sectors. Vacancy levels in the Amsterdam Zuidoost office location have declined from 28% to 3% over a period of seven years and average rents have increased from €170 to €190/sq. m. over the last five years. a.s.r. real estate strongly believes in investments to renovate and transform mobility hubs, which look set to be futureproof and able to bring long-term value growth for office investments. In the Annual Report for 2017, the Manager discusses the development of ArenAPoort in more detail. The article can be read here.

For more information on the ASR Dutch Mobility Fund or ArenAPoort, please contact Pieter Vandeginste or Victor Hagenbeek.

Pieter Vandeginste
fund director
ASR Dutch Mobilty Office Fund
M: +31 (0)6 22 78 79 55
E: pieter.vandeginste@asr.nl

Victor Hagenbeek
associate Fund Management
ASR Dutch Mobility Office Fund
M: +31 (0)6 10 50 28 01
E: victor.hagenbeek@asr.nl