Real estate bank Berlin Hyp is providing a loan of €73.4 million to a joint venture between the Zadelhoff and Wonam Groups. The loan will finance the mixed-use conversion of the former ING headquarters in Amsterdam, originally completed in 1987 and known affectionately as the Zandkasteel (Sandcastle).
When the project is complete the asset will be predominantly residential although office and retail space is included.
The scheme which will have a total leasable area of about 9,000 sq m, consists of 10 towers arranged in an S-shape and connected by an inner street. In the late 1980s, the Zandkasteel was one of the most sustainable office buildings in the world and ahead of its time. In 2019, the Amsterdam authority designated the building a municipal monument.
Three towers of the ten towers are being transformed by the municipality into a new location for the Amsterdam International Community School (AICS). Seven towers will be converted into approximately 300 homes for rent. On the inner street there will be 12 office spaces of approximately 250 sq m to 600 sq m as well as meeting and conference rooms. Four parking garages under the Zandkasteel are being renovated and partly furnished as public parking spaces.
Once the construction phase is complete Berlin Hyp will also provide long-term financing for the property.
Zandelhoff and Wonam were advised by Deloitte Debt and Capital Advisory, DLA Piper advised Berlin Hyp on the transaction process.