04 August 2014
“The reforms to the rental market and the favorable outlook have increased the appetite of investors for Dutch residential assets, providing us with an excellent opportunity to recycle capital and rebalance the portfolio.” Explains Allard van Spaandonk, Managing Director Dutch Investments.
Bouwinvest’s Dutch Institutional Residential Fund, the largest investor in residential properties in the Netherlands on an unleveraged basis, has agreed to sell 16 apartment blocks with a total of 723 units to an international institution. Both parties have agreed not to disclose the financial terms of the transaction.
Allard van Spaandonk, Bouwinvest’s Managing Director for the Netherlands, said: “The reforms to the rental market and the favorable outlook have increased the appetite of investors for Dutch residential assets, providing us with an excellent opportunity to recycle capital and rebalance the portfolio. As a result of the sale the percentage of regulated rental properties drops to around 15% of the fund’s total assets”.
The Bouwinvest residential fund’s portfolio comprises approximately 15,000 high-quality rental dwellings in economically strong regions of the Netherlands, most of which are in the liberalised sector of the market and so are not subject to rent controls. The fund targets a total return of 6% to its investors and its recent acquisitions include investing in developments that will create 1,900 new homes.
Jones Lang LaSalle acted as commercial advisor to Bouwinvest in this transaction; legal advice came from De Brauw Blackstone Westbroek.