Vesteda acquires €1.5b Dutch resi portfolio from NN Group

Dutch residential real estate investor Vesteda has agreed to buy a €1.5 bn Dutch residential real estate portfolio from Dutch insurer and asset manager NN Group.

The portfolio involves a total of 6,777 residential units, including a small portion (794 units) with a value of around €200 mln still to be developed. Both the standing assets and the pipeline units are part of the former Delta Lloyd Dutch residential portfolio.

The purchase price will be paid largely through newly issued participation rights while around one-third (€429 mln) will be paid in cash. In order to finance the cash portion of the acquisition, Vesteda has arranged a bridge facility.

Completion of the transaction is expected before the end of this month.

PropertyEU first reported in February that the Dutch investor was poised to acquire the portfolio in one of the largest portfolio transactions ever signed in the Netherlands.

In a statement Vesteda - which invests funds for institutional investors such as pension funds and insurers - said that the transaction fits perfectly with its strategy 'to achieve profitable growth while improving its portfolio and profile towards its tenants, employees and investors'.

'A transaction of this size is unique in the Dutch housing market,' said Gertjan van der Baan, CEO of Vesteda. 'We are extremely delighted with the confidence that NN Group has placed in Vesteda by contributing the former Delta Lloyd residential portfolio to Vesteda and increasing its stake in the fund. The addition of this portfolio to our existing portfolio strengthens our presence in attractive locations, broadens our housing offering and improves our returns. We will enlarge our offering in the mid-rental segment and strengthen our exposure to core regions. In addition, we will grow the weight of the single-family houses in our portfolio. This transaction will also provide us with operational cost efficiencies and decreases our Total Expense Ratio (TER).'

After completion of the transaction, Vesteda’s portfolio will consist of 27,000 residential units representing a value of €6.3 bn while the acquisition pipeline will consist of more than 2,500 residential units representing a value of €750 mln.

Vesteda said that it aims to upgrade the portfolio to bring it up to standard with the remainder of its assets. It plans to invest a total of €31 mln in the assets by the end of 2020.

Kempen acted as sole financial advisor, JonesLangLasalle as commercial advisor, Allen & Overy, Buren Legal and Loyens & Loeff as legal advisors and EY as a tax advisor for Vesteda in this transaction.


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