Duet buys into Dutch listed firm NSI

UK private equity firm Duet Asset Management is taking over a 15% stake in Dutch-listed firm Nieuwe Steen Investments (NSI) from Israeli developer Habas.

London-based Duet will pay €5.5 per share for the stake in NSI, which is roughly equal to the Dutch firm’s current share price but less than a third of the sum which Habas paid for the shares in 2007.

At the time, Habas’ owner Hertzel Habas bought a 20% stake in NSI from founder Jo Roelof Zeeman together with business partner Mayer. Habas also assumed the role of supervisory board chairman at the Dutch company. Duet will now take over 15% of the shares, leaving Mayer with a 5% interest.

NSI said on Wednesday that its bondholders had approved the deal which has yet had to be finalised.

NSI has €1.95 bn in property assets under management but the company’s market capitalisation is much lower at around €450 mln. The company has seen its share price fall sharply in recent years and has booked hefty writedowns on its office portfolio.

Duet has around €3.2 bn in assets under management in both private equity and hedge funds. The company also invests in debt secured against western European real estate through its Duet Real Estate Debt Funds I and II.

Duet said the transaction is conditional on Herzl Habas stepping down as supervisory board chairman of NSI.

Duet is the third Anglo-American company to invest in Dutch offices in the last 18 months following similar moves by Patron and TPG (Uni-Invest debt) and the Fortress Investment Group (Fordgate portfolio).