US-Dutch JV picks up Amsterdam apartment complex for €45m

US investor Heitman and Dutch partner Orange Capital Partners have agreed to acquire a 498-unit social housing apartment complex in Amsterdam for €45 mln.

The deal represents one of the first direct acquisitions by a foreign investor in a major new-build construction project for social rental properties in the Netherlands, according to the vendor, developer Change=.

Change= describes itself as a developer of a 'unique residential formula aimed at low and medium-skilled young workers'. The company plans to deliver 10,000 fully serviced apartments in the four largest cities of the Netherlands for young people in employment with an elementary or secondary vocational education.

'Change= takes the formula of "Work, Live, Learn and Life’' from the enormous need for affordable rental properties for young workers aged 18 to 30,' said founder and CEO Ralph Mamadeus.

The transaction relates to a residential tower block being built at August Allebéplein in a western suburb in the Dutch capital. The block will be 50 metres high and includes 498 studios which will be rented to young workers aged 18-30 for around €530 per month, over €100 less than may be charged within the price cap for social housing.

Construction has commenced and completion is expected in late 2016.

Advisory firm Capital Value advised Change= in the transaction. The development project was financed by ABN Amro Bank.

ING Bank is providing acquisition finance to Heitman and Orange Capital Partners.

Heitman and Orange joint venture has been investing in the Dutch housing market since 2014. The portfolio of more than 1,000 properties in the private and social rental sectors. Most of the apartments are in Amsterdam.

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