Round Hill Capital, acting on behalf of a client, have exchanged contracts to sell the shares of a residential property portfolio in the Netherlands to Heimstaden AB for a total purchase price of €1.39bn. The portfolio consists of 536 assets with a total of 12,300 lettable units comprised of 9,544 residential units, 77 commercial units, 2,112 parking spaces and 567 other units, such as storage.
Commenting on the acquisitions, Michael Bickford, founder and CEO of Round Hill Capital, said: “This sale is in line with Round Hill Capital’s strategy of investing in high-quality portfolios and improving the value of the underlying assets by optimising their operational performance. Round Hill Capital’s proven track record and our professional, hands-on residential property management expertise ensure that our tenants benefit from our focus and operational expertise. Round Hill Capital remains committed to investing in, developing and managing residential property in the Netherlands in a responsible manner, and we look forward to expanding our presence in the Netherlands and across Europe.”
Christian Fladeland, CIO of Heimstaden, said: “The Netherlands has been an obvious market for us to enter for some time and following our first acquisition in October 2018, we have been dedicated to sourcing new potential acquisitions. This portfolio offers a unique position for us to obtain significant exposure to a highly favourable residential market with strong macroeconomic fundamentals and significant nationwide undersupply of residential units. Heimstaden will, through its extensive experience from the Nordics, with full-service in-house asset and property management expertise, focus on upgrading the portfolio with an ambitious sustainability investment scheme as well as general modernisation plans, while still targeting mid-market and affordable rent levels.”
Patrik Hall, CEO of Heimstaden, commented: “This acquisition is an obvious opportunity for Heimstaden to establish a significant footprint in a market with strong fundamentals, which have been on the radar for some time now, with benefits of operational economy of scale from day one.”