Thursday, 11 December 2014
Heitman acquires prime Amsterdam residential portfolio for €76 mln (NL)
Heitman LLC, a global real estate investment management firm, announced that it has acquired two separate residential portfolios in Amsterdam for a total of approximately €76 mln. The portfolios comprise 400 rented residential units and 12 retail units across 24 buildings, with a total area of 28,400 m². The assets are located within the supply-constrained submarkets of Central Amsterdam in vibrant, infill locations.
Heitman, on behalf of one of its existing institutional clients, formed a joint venture with Orange Capital Partners to acquire the assets. OCP is considered a best-in-class, employee-owned local rented residential specialist. OCP was established by former Goldman Sachs employees to target investments in the Dutch residential sector.
Heitman views this initial investment as the beginning of an aggregation program in a sector that offers an attractive and scalable opportunity. The Dutch residential sector is expected to benefit from a unique blend of cyclical turnaround potential, constructive structural reform, and favorable supply/demand fundamentals.
Whilst this marks the firm’s first residential investment within the Netherlands, Heitman has significant experience in this sector, both globally and in Europe, having deployed €8.7 bln into rented residential assets globally. In 2012, Heitman formed a joint venture with Grainger plc to invest in a circa 3,000 unit German rented residential portfolio. The properties are located in the high barrier-to-entry markets of Western and Southern Germany.
Rob Reiskin, Managing Director and Co-Head of Europe at Heitman, said: “We are delighted to undertake this investment and see significant opportunity to expand this platform. We have extensive experience in operationally-intensive sectors across Europe and this investment is a logical continuation of our existing European rented residential platform.”