Global real estate investment, development and asset management firm Round Hill Capital has inked three multifamily deals in the Netherlands for a total of €52.3 mln.
The rental properties in Diemen, Leiden and The Hague represent the first acquisitions by Round Hill's European Residential Income Fund II (ERIF II) since it announced its €200 mln first close in August 2020.
The fund is targeting multifamily housing assets in Europe offering attractive long term yields, focusing on the comparatively stable residential markets of the Netherlands, Germany, and the Nordics.
The assets cover some 12,946 m2 of rental space in total and all boast high occupancy rates, Round Hill said. The company plans to use innovative technology to better engage with tenants and also implement refurbishment strategies to enhance returns at the properties.
Michael Bickford, founder and CEO of Round Hill Capital commented: 'We launched ERIF II to offer investors the opportunity to secure strong returns from residential real estate, backed by our deep understanding of European markets and exceptional operational expertise.
'In 2021 and over the long term, we believe responsibly managed residential real estate will continue to prove itself as a highly resilient and defensive investment. The current economic conditions have tested many asset classes, yet accommodation continues to provide consistently stable income streams at a time when yield is under intense pressure.'
The Diemen property, acquired for €23.4 mln from undisclosed private investors, comprises a 54 unit, 5,113 m2 residential property.
The Leaves complex on Kralendijkkade in Leiden was also purchased from private investors, costing €14.7 mln. The 50 apartment building comprises 2,613 m2 and is situated close to Leiden Centraal station.
The fund furthermore acquired the Leyster in The Hague from an institutional investor for €14.2m. Its 49 apartments on the Leyweg are spread across 5,220 m2 and it is close to the city’s Zuiderpark. The residential apartments are located on the upper 10 floors of the building, above municipal offices and a library that are not part of the transaction.
Sander Van den Heuvel, Round Hill's managing director Netherlands commented: 'These three acquisitions underline the strength of European multifamily investment activity with the Dutch market driven by the desire to achieve sustainable, affordable urbanisation across its major cities.
'Once again, our long-term involvement in the Dutch market and local expertise allows us to identify compelling opportunities in order to generate risk adjusted returns at a time when quality affordable housing supply is limited.'
Legal advice on the transactions was provided by Dentons. DRS/Gerald Eve assisted commercially on the Diemen and Leiden assets. The assets have been financed with a secured term loan provided by ING Bank.
