Heitman Grabs Two M-F Portfolios in Amsterdam

Global real estate investment management firm Heitman L.L.C. has bought two separate apartment portfolios, for the first time in Holland.
Courtesy: realestate.ipe.com

Courtesy: realestate.ipe.com

Global real estate investment management firm Heitman L.L.C. has bought two separate apartment portfolios in Holland, for the first time.

Heitman shelled out $94 million for the two residential portfolios located in the Netherlands’ capital of  Amsterdam, benefitting from their central location in supply-constrained markets.

The acquisition was a result of Heitman’s newly formed joint venture with Orange Capital Partners, an employee-owned local rented residential specialist created by former Goldman Sachs employees for Dutch residential sector investors. According to the official announcement, NYC-based Silverfern Real Estate Partners was a co-investor in the transaction.

Totaling  305,000 square feet of space, the two portfolios comprise a total of 24 buildings that include 400 rental units and 12 retail units. The Amsterdam apartment market is currently experiencing challenges in providing an appropriate housing stock, leading to great opportunities for investment in the rental market. For the buyer, this acquisition is the first stage of an aggregation program in a sector that offers great opportunities. According to analysts, the residential sector in the Netherlands is set for a unique blend of cyclical turnaround potential, reform and great supply/demand fundamentals.

Heitman Managing Director and Co-Head of Europe, Rob Reiskin, noted that the company is “delighted to undertake this investment and see significant opportunity to expand this platform”.

Reiskin also noted that the company has work experience across Europe, a logical continuation of the entity’s current European rented residential platform. Although this is Heitman’s first foray in The Netherlands, the company heavily drew from its global experience. An example is the company’s 2012 acquisition of a German residential portfolio totaling 3,000 units, when the company partnered with Grainger Plc. That portfolio features properties in the high barrier-to-entry markets of Western and Southern Germany. Heitman has deployed around $10.8 billion into rented residential assets globally up to this point.