Patrizia pays sub-4% for €60m Amsterdam resi project

German property group Patrizia is investing a sum believed to amount to around €60 mln to acquire a new residential building in Amsterdam Nieuw-West in an off-market deal with developerML Holding.

The price is said to reflect a gross initial yield below 4%, representing a record price for this part of the city.

The BTR project - known as De Citadel - is expected to be delivered in April next year and it was acquired in a forward funding transaction. It involves a total of  8,171 m2 of new residential space comprising 149 units in an emerging neighborhood in Amsterdam. Designed by renowned architectural firm MVSA, the Citadel is expected to achieve the highest possible sustainability rating upon completion.

Patrizia declined to comment on the price paid.

The property was purchased by Patrizia on behalf of institutional clients.

Alexander vanGastel of Patrizia's transaction team said: ‘Recent research shows that affordability is an important investment criterion, as the pandemic has led to stagnant incomes across all salary scales. This has consequences for broad groups of households and middle incomes, also in the higher part of this income class in the most attractive cities. At the same time, we see rents rising due to shortages on the supply side. This applies throughout Europe, but certainly also in Amsterdam, where affordable rental housing is scarce and the shortage is expected to increase further in the coming years. Apartments in the Citadel will especially appeal to young professionals and starters who do not qualify for social housing and who cannot afford the high rents in the center. This purchase responds to strong local market demand and fits into Patrizia's long-term strategy, which focuses on offering affordable homes in key markets across Europe, where the underlying fundamentals are strong.’

Patrizia was commercially advised by Savills, technically supported by CBRE and legal/tax supported by Loyens and Loeff. The seller was technically advised by Maarten van Gent C.S. and legal/notarial by Bijker cards and tax by Dirkzwager.


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