Heitman LLC (Heitman) has announced that it has agreed to purchase a residential portfolio of 32 properties located within Amsterdam’s city centre. The portfolio is comprised of approximately 450 rented residential apartments, with a total area of 32,000m².
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. This most recent acquisition marks Heitman’s fifth residential investment in Amsterdam since the JV was established and with approximately 1,500 apartments after this transaction, Heitman and OCP are now believed to be one of Amsterdam’s largest private residential landlords.
Heitman believes that investment in the Dutch residential sector will benefit from a unique blend of cyclical turnaround potential, constructive structural reform, and favourable supply/demand fundamentals. Today’s investment is consistent with Heitman’s focus on identifying promising trends and benefitting from an early mover advantage for multi-family rented residential strategies in Europe, along with other ‘living’ sectors including student and senior housing.
The firm has significant experience in the residential sector, having deployed €9.9bn into rented residential assets globally. Recently, Heitman exited its interest in a 3,000 unit German residential portfolio it owned in a JV formed in 2012 with Grainger plc. This investment exceeded expectations and allowed the partners to generate significant returns.
Gordon Black, senior managing director at Heitman, said: “We believe that this investment program has allowed us to showcase the value that we can create for our clients via the setting of sound strategy, solid stock selection, aggregation and active asset management.”
CBRE acted as an advisor to Heitman and OCP and Deutsche Bank will provide third party financing for the transaction.