On September 8, 2008, Wereldhave completed the purchase of DiamondView,
a fifteen-story office building located in the flourishing "live, work
and play" Ballpark District, in San Diego, California. DiamondView is
situated next to the PETCO Park baseball stadium, in a prime location
that is within walking distance to the San Diego Convention Center and
five miles of San Diego International Airport. The property totals
28,500m2 and provides 928 parking spaces. The purchase price amounts to
USD 161 mln.
The office building is 91% let with long term leases. A rental income
guarantee brings the net initial yield to 6.25%. The acquisition
contributes immediately to the direct result per share.
DiamondView and Broadway 655, a prime office property acquired by
Wereldhave in 2007, are the only two class-A office buildings built in
downtown San Diego, in nearly two decades. There are currently no other
prime office properties under construction in this market. As a result
of rising construction costs, the difference between the acquisition
price and the costs of comparable new office space is small.
This acquisition is Wereldhave's second property investment in the West
Coast of the USA. Wereldhave has decided to invest at the west coast of
the USA in view of the increasing economic activity. The acquisition
fits Wereldhave's policy of acquiring newly built, prime property in
knowledge based markets.
San Diego is a large harbour city in the south of California, with 1.3
mln inhabitants. Large harbour cities at the USA west coast are
profiting from the increasing trade with emerging countries in Asia.
San Diego is also knowledge center for the biotech industry and offers
an attractive climate for companies and employees.
Board of Management Wereldhave N.V.
The Hague, September 9, 2008
This information is provided by RNS
The company news service from the London Stock Exchange
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