Financial close reached for Renovation Rijnstraat 8 PPP project

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Financial close reached for Renovation Rijnstraat 8 PPP project

The Government Buildings Agency (Rijksvastgoedbedrijf) and BAM PPP PGGM Infrastructure Coöperatie U.A. have achieved financial close for the renovation and exploitation of Rijnstraat 8 building in The Hague.

Project financing has been provided by Rabobank International and Allianz Global Investors Europe. The integral PPP contract has a duration until 2042 with a net present value of €267 million (US$363 million).

KPMG was acted as financial advisor to PoortCentraal. Legal advisor to the consortium was De Brauw Blackstone Westbroek. AON Risk Services and VHIVA supported PoortCentraal with regard to insurance issues. Advisors to the lenders were Nauta Dutilh (legal), Turner & Townsend (technical), BDO (model auditor) and AON Global Risk Consulting (insurance).

The project will be developed by the consortium, consisting of BAM PPP PGGM, BAM Utiliteitsbouw, BAM Techniek and ISS Nederland. The joint venture of BAM PPP and PGGM is the equity provider.

Rijnstraat 8 will be renovated in the period 2014 through 2016. The organisations involved are expected to move to the renovated building at the beginning of 2017.

Rijnstraat 8 in The Hague is part of the Master Plan for Office Accommodation in The Hague. As a result of pressure to have an efficient and effective Central Government the current cabinet implemented major changes in the organisation of the Government and these changes also have consequences on government accommodation.

The Renovation Rijnstraat 8 project entails the renovation of an existing building originally designed by Jan Hoogstad. He received the commission for the VROM building in the mid-nineteen eighties. When choosing the consortium, the degree of sustainability (energy, materials and environmental load during exploitation) was also taken into account.

The design for the transformation of the building is made by OMA. The design is established in cooperation with Ector Hoogstad Architects, Wessel de Jonge Architects, YNNO, DGMR, ARUP, BAM Advice & Engineering and Valstar Simonis.

After renovation, this building, which formerly accommodated the ministry of VROM (Transport, Spatial Planning and the Environment), will house the ministry of Foreign Affairs, the ministry of Infrastructure and Environment, the Immigration and Naturalisation Service and the CAO (central organisation for the reception of asylum seekers).

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