Vesteda, the Dutch residential property investor, is poised to acquire a 7,000-unit portfolio for a total consideration of €1.4 bn.
Vesteda revealed on Monday that it was in exclusive negotiations to purchase the portfolio from Dutch insurance and asset manager NN Group.
NN and Vesteda envisage a transaction in which Vesteda shall acquire the residential real estate portfolio for a consideration consisting of Vesteda participation rights (approx. 75%) and a cash payment (approx. 25%).
The transaction relates to 6,000 standing assets and a 1,000-unit pipeline. Both elements form part of the former residential property portfolio of pension-insurer Delta Lloyd, which merged with NN last year.
The signing of a binding sale and purchase agreement (SPA) is expected in the coming weeks. The transaction is expected to close in April 2018, subject to certain conditions.
Should the acquisition complete as planned Vesteda will see its portfolio grow to a total of 28,000 units, representing a total value of more than €6 bn.
Vesteda invests funds for institutional investors such as pension funds and insurers. The fund manager has €4.8 bn invested in real estate, focused on the Randstad region and the Brabant metropolitan area.
