German investor purchases Dutch residential portfolio (DE/NL)

The German investor BNP Paribas REIM Germany recently purchased 265 residential units from Amvest, located in the Dutch towns of Hoofddorp, Almere, Barendrecht and Zoetermeer. The units were acquired for approximately €40 million. Capital Value advised Amvest on the sale. This was the first residential investment transaction of 2014 to involve a buyer from outside the Netherlands. A survey conducted by Capital Value among international investors shows that approximately €1 billion is available for investment in the Dutch residential rental market in 2014.

“We're currently seeing a massive growth in foreign investor interest in Dutch rental homes”, Capital Value Director Marijn Snijders said. “There's been a constant stream of new investors entering the market, and some deals are already at an advanced stage. Players from Germany, Britain and the United States, in particular, are keen to invest in rental homes in the Netherlands. A study presented by Capital Value in January reveals that the Netherlands ranks third as an investment destination for residential rental property. Additional transactions involving foreign investors will be announced in the near future.”

Wim Wensing, Investment Management Director at Amvest: “This transaction is particularly special as BNP Paribas REIM is a core investor that is investing in the Dutch residential market for the longer term using money from German pension funds. It was therefore prepared to pay an optimal price. Amvest will use the revenue to invest in new residential construction in the mid-range rental segment in the larger cities in the Randstad conurbation and is updating its portfolio in this way.

The foreign capital looks set to boost the rental market in the mid-level segment, particularly because, in terms of interests, foreign parties are complementary to Dutch private and institutional residential investors, as demonstrated by the study.

Headquartered in Munich, BNP Paribas REIM Germany manages the assets of a number of German pension funds, along with a host of other clients. The fund has over €4.4 billion in managed assets and operates in more than 14 countries across Europe and Asia.

Source: Capital Value

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