Multi Vastgoed, the Dutch subsidiary of Multi Corporation, is joining forces with Rotterdam-based Fortress Groep in a 50/50 office development joint venture in the Netherlands. The parties signed contracts at the Provada real estate fair in Amsterdam on Wednesday to contribute development portfolios of 14 projects with a total development volume of EUR 950mln to the joint venture. The projects are in the four largest cities in the Netherlands, Amsterdam, The Hague, Rotterdam and Utrecht.
Multi Vastgoed, the Dutch subsidiary of Multi Corporation, is joining forces with Rotterdam-based Fortress Groep in a 50/50 office development joint venture in the Netherlands. The parties signed contracts at the Provada real estate fair in Amsterdam on Wednesday to contribute development portfolios of 14 projects with a total development volume of EUR 950mln to the joint venture. The projects are in the four largest cities in the Netherlands, Amsterdam, The Hague, Rotterdam and Utrecht.
Fortress board member Ton van Oosten will be managing director of the joint venture, and staff of Multi and Fortress who are involved in the office divisions will be transferred to the new company.
The deal is subject to a positive due diligence report for both parties, and the name of the joint venture is to be announced soon. Multi said the parties are aiming to complete the process before the summer holiday period.
Multi Corporation said both parties had decided it was logical to work together to strengthen their respective positions in the market. Multi Vastgoed has years of expertise as both a retail and office developer, while Multi Corporation's expansion into more than 23 European countries in recent years has been as a dedicated retail property specialist. 'Placing office activities in the Netherlands in a new joint venture fits in with this trend,' Multi said.
Multi Corporation - which is owned by Morgan Stanley - topped PropertyEU's two rankings of European developers in 2008. In March this year, the group has a secured retail projects with a gross leasable area of 3.9 million m2 out of a total pipeline of 4.9 million m2.
Fortress is an investment and development company with a strong position in the Dutch office segment. The company underwent significant growth when it acquired Amsterdam-based developer Maeyveld in January 2007. Fortress had a development potential of EUR 300mln at the time, while Maeyveld's portfolio had a potential development value of EUR 1.5bn.
