Foreign investors splurge over €1.5b on Dutch resi in 2014

Foreign investors snapped up more than €1.5 bn of Dutch residential property in 2014, the majority of it in the regulated sector.

Advisory firm Capital Value said the strong interest was likely to continue into the new year as large holders such as housing corporation Vestia, WIF and Propertize (formerly SNS Property Finance) continue to bring portfolios to the market.

International investors tend to favour the regulated sector, which accounted for around 52% of all residential purchases last year, in contrast to Dutch institutional funds which focused on new-build properties in the Randstad urban agglomeration. Foreign buyers were more active in the peripheral areas on the edge of the main conurbation.

Round Hill Capital was the largest newcomer on the scene, acquiring major portfolios from the likes of CBRE Global Investors, Wooninvesteringfonds (WIF) and Propertize. The largest single transaction was Patrizia’s acquisition of Vestia’s portfolio for €578 mln. Other entrants to the market included Aventicum, BNP Paribas REIM Germany and Heitman.

Capital Value said a number of international investors had opened Dutch offices or formed joint ventures with Dutch companies. Local property managers continue to be favoured for day-to-day management and contact with tenants.

Dutch residential property is expected to remain attractive to international investors due to the low level of new-build activity and the high demand for good quality rental housing.

Marijn Snijders, director of Capital Value, said: ‘Foreign investors have a lot of capital available. Because a number of major portfolios came on the market in 2014, investments from abroad have exceeded expectations.’

The results of the survey will be published in February.

For more on the prospects for Dutch real estate, see the article, video interviews and presentations from our Outlook 2015: Europe & The Netherlands investment briefing.