Bouwfonds REIM invests EUR 90m in three-country residential deal

Bouwfonds REIM has acquired residential properties in the Netherlands, Germany and Denmark for a total of EUR 90 mln. The purchases were made for Bouwfonds European Residential Fund.

Bouwfonds European Residential Fund now holds properties in Germany, Denmark, France, the Netherlands, Norway and Sweden. The fund owns EUR 500 mln of assets and aims to acquire EUR 750 mln to EUR 1 bn of residential real estate by end-2013. Bouwfonds REIM works in partnership with investment company Catella Real Estate on the fund. The target return is 5-6% per annum according to the BVI method (the standard method developed by the German federal association for investment and asset management).

The largest investments were in the Netherlands, amounting to EUR 72 mln. The fund acquired a portfolio, comprising four buildings, in the Morgenstond district of The Hague, the third largest city in the Netherlands. The buildings have a total living space of 16,263 m2, divided among 184 residential units.

The buildings were sold by the pension fund of Dutch real estate investment manager Bouwinvest. Bouwfonds European Residential Fund was advised by Colliers as well as CMS Derks Star Busmann.

Also in the Netherlands, the fund acquired a four-building portfolio spread across Rotterdam and Leiden. The property in Rotterdam consists of 270 residential units and seven commercial units and was built in 1989. The three residential buildings in Leiden (comprising 99 residential units) were constructed in 1991. The portfolio comprises a total of 29,999 m² of living space and 1,729 m² of commercial space. The portfolio was sold by investment management company Vesteda. Colliers and CMS Derks Star Busmann acted for the buyer.

In Germany, the fund acquired 119 residential units located in Langenhagen, on the Hannover city boundary. The transaction is the fund's second acquisition in Hannover.

Built in 1995, the property comprises a total living space of 7,731 m² and involved a gross investment totalling EUR 9.7 mln (EUR 1,256/m2). The price reflects a gross initial rate of return if 6.8%. The vendor was Peakside Real Estate Fund I. The management of the fund was advised by CT Legal Stein & Partner.

The fund also acquired 27 residential units in the Nørrebro district of Copenhagen, the third investment in the Danish capital. The building, which was originally built in 1903, was extensively renovated between 2007 and 2009. It consists of a total of 2,624 m² of living space. The gross investment totals EUR 8.1 mln (EUR 2,799/m2) and the gross initial rate of return is 6.4%. The property was sold by the Union of Commercial and Clerical Employees (HK), the largest trade union in Denmark. Bouwfonds was advised by the Thylander Group and Accura Advokatpartnerselskab.

Bouwfonds European Residential Fund now holds properties in Germany, Denmark, France, the Netherlands, Norway and Sweden. The fund owns EUR 500 mln of assets and aims to acquire EUR 750 mln to EUR 1 bn of residential real estate by end-2013. Bouwfonds REIM works in partnership with investment company Catella Real Estate on the fund. The target return is 5-6% per annum according to the BVI method (the standard method developed by the German federal association for investment and asset management).