Amsterdam-based real estate fund manager Vesteda is in talks to pay around €1.4bn to acquire 7,000 Dutch residential units from asset and management firm NN Group, headquartered in The Hague. The assets comprise the former portfolio of shipping line Delta Lloyd.
The two firms envisage a transaction in which Vesteda will acquire the portfolio for a consideration consisting of around 75% in Vesteda participation rights and the remainder in a cash payment, Vesteda said in a release on Monday.
The portfolio consists of around 6,000 existing residential units and an acquisition pipeline of another 1,000, both part of the former residential portfolio of Delta Lloyd. Vesteda said its housing portfolio after this transaction will comprise more than 28,000 units. representing a total value of more than €6bn. The signing of a binding sales agreement is expected in the coming weeks, and closing of the transaction is expected in April 2018.
Vesteda describes itself as an entrepreneurial investor with a clear focus on Dutch residential real estate. With €4.8bn of assets and some 22,500 residential units under management prior to the new transaction, it invests funds for institutions such as pension funds and insurers. Key investment regions are the Randstad and the Brabant metropolitan areas of The Netherlands.
BIE COMMENT: Dutch residential is one of the hottest asset classes on the continent at present, producing returns in some instances in double figures as demand continues to outstrip supply – as in many other European economies. The market is dominated by domestic players who understand the intricacies of managing the assets within the interplay between communal housing and the unregulated private market. Politics also plays a role: while the former government of Prime Minister Mark Rutte promoted the entry of more private capital to rental housing, his new government, at the moment at least, has taken a more equivocal stance.