US investor Heitman has entered into an agreement to purchase a residential portfolio of 32 properties located within the city center of Amsterdam.
US investor Heitman has entered into an agreement to purchase a residential portfolio of 32 properties located within the city center of Amsterdam.
The portfolio comprises around 450 rented residential apartments, with a total area of 32,000 m2. Financial details were not disclosed.
Heitman, on behalf of one of its existing institutional clients, formed a joint venture with Amsterdam-based Orange Capital Partners (OCP) to acquire Dutch residential assets in 2014.
The acquisition marks Heitman’s fifth residential investment in Amsterdam since the joint venture was established, bringing the total portfolio to 1,500 apartments.
Heitman believes that investment in the Dutch residential sector will benefit from a unique blend of cyclical turnaround potential, constructive structural reform, and favorable supply/demand fundamentals. 'Today’s announced investment is consistent with Heitman’s focus on identifying promising trends and benefiting from an early mover advantage for multi-family rented residential strategies in Europe, along with other “living” sectors including student and senior housing,' the company said.
CBRE acted as an advisor to Heitman and OCP and Deutsche Bank will provide third party financing for the transaction.
The firm has significant experience in the residential sector, having invested a total of €9.9 bn in rented residential assets on a global basis. Recently, Heitman exited its interest in a 3,000 unit German residential portfolio it owned in a joint venture formed in 2012 with Grainger.