Swedish real estate group Heimstaden has bought a residential portfolio in the Netherlands from Round Hill Capital for €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.

Following the deal, Heimstaden will own and manage close to 50,000 residential units and oversee real estate valued at about SEK94bn (€9.01bn).

Round Hill, on behalf of investors, established its residential investment and asset management platform in the Netherlands in 2014.

Round Hill said it will continue to focus on making further investments in residential property in the Dutch market and across Europe.

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.”

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.”

Fladeland said Heimstaden will 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, said: “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.”