Pan-European private equity real estate investor Deutsche Finance International (DFI) has acquired a €200 mln residential-led development project which will preserve the historic elements of a 19th century flour mill in Amsterdam.
The project, located in the suburb of Zaanstad-Wormerveer, represents a joint venture with local development manager, Waterland Real Estate, and developer-contractor Van Wijnen, one of the largest residential construction companies in the Netherlands.
The off-market deal was undertaken on behalf of DFI’s inaugural fund, DFI European Value-Add Fund (DFI EVAF) and marks the company’s first investment in the Dutch market. DFI is the majority investor in the joint venture.
Paul Nearchou, director at DFI, said: 'This acquisition presented a significant opportunity to sustainably develop a new district that will both incorporate and be sympathetic to the site’s heritage properties while at the same time benefit the local community. This transaction also kicks off our joint-venture in the Dutch residential market alongside specialist partners who bring extensive experience of the Dutch real estate sector.'
Formerly the Meneba flour mill factory, the 4.6 hectare, 100-year-old industrial site was purchased for the development of 600+ residential units, including build-to-rent and for-sale homes as well as ancillary commercial uses.
The business plan assumes partly retaining and refurbishing the heritage components of the old factory, while inserting modern accommodation. It will also incorporate new outside spaces and public realm for both residents and the local community. Its sustainable credentials include solar / PV panels, green roofs and façades, plus heat & cold storage.
Gavin Neilan, co-founder and co-managing partner at DFI added: 'This latest transaction for DFI EVAF, which is our first in the Netherlands, aligns with our investment strategy to identify themes such as residential asset classes that are underpinned by long-term growth dynamics and proactively reposition under-managed and under-invested assets to deliver strong returns to our investors.
'Located in a growth market on the outskirts of a major European city like Amsterdam, the site will benefit from urbanisation trends as well as the Dutch residential market’s strong fundamentals.'
Feike Siewertsz van Reesema, managing partner at Waterland Real Estate, commented: 'This project is a significant opportunity to develop a new, mixed-use urban quarter for Wormerveer and the Zaanstad region, which will include sustainable and affordable rental and owner-occupied homes that help address the large shortage of residential properties in the area.
'We look forward to working in close collaboration with the municipality of Zaanstad, as well as our partners at Mecanoo, Van Wijnen, and DFI, our new partner for future developments in the Netherlands.'
