Allianz Real Estate and a leading Asian institutional investor are investing €600m in Vesteda.
The investment in the Dutch residential specialist is the first time international capital has backed the firm, with all current participants in Vesteda being Dutch institutional investors.
The Netherlands’ largest institutional investor, APG, last year increased its stake in Vesteda.
The Dutch asset manager took its interest in Vesteda to €1.05bn, adding €30m.
The latest transaction takes Vesteda’s total equity to €2.4bn.
Vesteda, which focuses on the mid-rental segment, said that, of the total new investment, €345m is intended for acquisitions, of which €160m will be immediately drawn.
A further commitment of €185m has been made, while the remaining €255m will be used to meet redemption requests of existing participants.
Chief executive Gertjan van der Baan said the firm recently expanded its acquisition team to add existing and new properties.
“These building blocks contribute to further growth of our portfolio and profitability,” he said. “The transaction marks yet another significant step in realising our ambition.”
Interest in the Dutch residential market increased last year after prices began to recover and the government sought to shake up a rental market long dominated by housing associations.
Speaking in Barcelona this week, APG’s head of real estate Patrick Kanters told the INREV annual conference that the new investors were “making a very good bet”.
Kanters, currently INREV chairman, added: “The Dutch housing market is very well positioned.”
