International investors invest €600 million in Vesteda
Allianz Real Estate, one of the world’s largest real estate investors, and a leading Asian institutional investor, will invest €600 million in Vesteda, the largest commercial investor that is fully focused on the Dutch residential real estate market. Currently, all participants in Vesteda are Dutch institutional investors.
Of the total investment €345 million is intended for acquisitions. Of this value, €160 million will be immediately drawn. Additionally, there is a commitment for the investment of another €185 million. The remaining €255 million will be used to meet redemption requests of existing participants. This transaction is one of the most significant foreign investments in Dutch residential real estate in recent years. After this transaction, Vesteda’s total equity amounts to €2.4 billion.
Last years’ appointed Managing Board – consisting of CEO Gertjan van der Baan and CFO Hélène Pragt – considers the investment by both global leading parties as a confirmation of Vesteda being the platform of choice for institutional investors with a long-term horizon that would like to benefit from the opportunities of the Dutch housing market. Vesteda focuses in particular on the mid-rental segment in economically strong regions in the Netherlands.
CEO Gertjan van der Baan: “We are proud that our strategic direction is endorsed by two leading international investors. We have recently strengthened our internal property management organisation, improved our financing structure and obtained an S&P BBB corporate credit rating. Moreover, we expanded our acquisition team to pursue our growth ambition in both existing and new properties. These building blocks contribute to further growth of our portfolio and profitability. The transaction marks yet another significant step in realising our ambition.” For this transaction Kempen & Co acted as financial advisor, Allen & Overy LLP as legal advisor and PwC as tax advisor.
Vesteda is an active investor with a clear focus on the Dutch residential real estate market. Vesteda invests funds for institutional investors, including pension funds and insurers. Vesteda has total capital of approximately €3.7 billion invested in real estate. The company’s rental portfolio stands at a total of around 23,000 homes. Vesteda’s key investment regions are the Randstad urban conurbation and the Noord Brabant province.