Allianz Real Estate, the real estate investment arm of German insurer Allianz, has partnered with an unnamed Asian institutional investor to back Maastricht-based residential property company Vesteda to the tune of €600 million.
According to an announcement by Kempen & Co, the Amsterdam-based merchant bank, which advised on the capital raising, the proceeds will be go towards fresh acquisitions, meeting redemptions and to expand Vesteda’s business more generally.
The Netherlands’ biggest private sector landlord, Vesteda invests funds solely for institutional investors and has, to date, invested approximately €3.7 billion in for-rent properties. Its portfolio currently extends to about 23,000 units and generates an annual return of €136 million.
Kempen said in the announcement: “This investment by both global leading parties is a great vote of confidence to Vesteda and its strategy, to be the platform of choice for institutional investors with a long-term horizon that seek to benefit from the opportunities of the Dutch housing market.”
“Vesteda has recently strengthened its internal property management organization, improved its financing structure and obtained a S&P BBB corporate credit rating. Moreover, the company has expanded the acquisition team to pursue its growth ambition in both existing and new properties. This capital raising marks yet another significant step in realizing this ambition.”
Check out the forthcoming May issue of PERE magazine for coverage of an in-depth discussion on the Dutch private property market.