A major Dutch residential portfolio is on the market as international investors start to cash in on post-GFC acquisitions, PropertyEU can reveal.
US investor-developer Round Hill Capital is disposing of its entire Dutch residential portfolio with a price tag that could exceed €1.4 bn, well-informed sources told PropertyEU.
Amassed in the last four years, the portfolio comprises nearly 10,000 units and generates annual rental income of some €75 mln. Round Hill was the first international investor to become active in the Dutch residential market following the crisis and is said to be selling the package on behalf of US private equity giant Blackstone, among others.
A spokesperson for Round Hill declined to comment when contacted by PropertyEU.
Since entering the Dutch residential sector in 2014 with a €180 mln portfolio purchased from CBRE Global Investors, Round Hill has built up a substantial position in the market through a string of acquisitions. The bulk of the portfolio was assembled between 2014 and 2016.
Just last week, the company announced it had purchased 400 housing units in The Hague, while earlier this year, it bought a housing development site in the central city of Utrecht. These acquisitions are all set to be included in the sale, according to the sources.
Maiden UK student housing deal
Separately, Round Hill announced on Monday that it is forward-funding the development of four purpose-built student accommodation (PBSA) schemes across the UK together with private equity firm KKR. The deal is the first in the UK student housing sector by the joint venture.
The four PBSA development schemes are being acquired from and built by Watkin Jones and will provide a combined total of 1,815 beds. As part of the transaction, the JV has also agreed an option to forward-fund a 348-bed PBSA scheme in Bristol conditional on full planning consent.
‘This is our joint venture’s first student housing development scheme in the UK, where select areas of the UK student housing market still suffer from structural supply constraints in key university cities,’ commented Michael Bickford, founder and CEO of Round Hill Capital.
The buildings will be managed by Nido Student, Round Hill’s operational platform and brand for European student accommodation. KKR and Round Hill have secured financing for the schemes from Wells Fargo. KKR’s investment was made through its Real Estate Partners Europe fund.
Round Hill was founded by Michael Bickford in 2002 as a real estate investor and manager and now has some $6.5 bn (€5.6 bn) of assets under management worldwide. The company’s European housing portfolio comprises around 100,000 units. It has a substantial portfolio in Germany and recently also entered the Finnish residential market. Round Hill is also active in the UK and Continental European student housing market through its Nido brand and platform.
