About Vesteda

Leading institutional residential investor

Vesteda invests the pension savings and insurance premiums entrusted to it by institutional investors, such as pension funds and insurance companies, in sustainable Dutch homes for middle-income tenants.

Vesteda is an entrepreneurial and service-oriented institutional residential investor with a sizeable and varied portfolio of homes in attractive neighbourhoods in the Netherlands. With an investment portfolio of more than 27,800 homes, representing a total value of €7.0 billion at the end of 2018, Vesteda manages the largest Dutch residential fund. Vesteda is internally managed, is cost-efficient and has in-house property management.

As such, Vesteda contributes to future income security for retirees, affordable living for Dutch middle-income households and to the continued improvement of the quality of urban communities.

Key characteristics

Vesteda

  • Established in 1998 as Vesteda Woningen (Vesteda Residential Fund) as a spin-off of the residential portfolio of Dutch pension fund ABP

  • Single fund manager

  • Internally managed: no management fee structures and carried interest arrangements

  • Open-end core residential real estate fund

  • Broad institutional investor base with a long-term horizon

  • Attractive risk profile

  • Limited use of leverage (target <30%)

  • Active investor relations policy

  • In-house property management

  • Governance in accordance with best practice guidelines, including INREV, with the emphasis on transparency and alignment of interests

  • AIFMD (Alternative Investment Fund Managers Directive) Licence obtained in 2014

  • Transparent for tax purposes (fund for the joint account of participants; FGR fund structure)

  • GRESB score of five out of five stars and second ranking in the peer group of 13 (top 20% performers globally)

Assets

  • Vesteda offers sustainable housing and operates in a socially responsible manner

  • All in the Netherlands, all in residential and related properties

  • Well-diversified portfolio consisting of 532 residential complexes

  • Focus on economically strong regions

  • Focus on the mid-rental segment: monthly rents of between €711 (2019: €720) and approximately € 1,000 (€1,200 for G4 cities)

Targets

  • Tenant satisfaction score of at least 7.0[1]

  • Improve sustainability of portfolio; outperform the Energy Agreement: 80% green energy ratings (A, B or C) and maximum 20% rating D (2020)

  • Stable distributions to participants of realised return, excluding proceeds from property sales

  • Outperformance of the three-year MSCI IPD Netherlands Residential Benchmark[2]

Key milestone dates in the life of the fund

2018

 

Strengthened position in both the primary regions and mid-rental segment through the acquisition of the former Delta Lloyd portfolio consisting of 6,777 homes and the portfolio sale of 1,872 homes, 90% of which were in the government-regulated sector

 

€1,080 million equity issue (related to acquisition of the former Delta Lloyd portfolio)

 

€500 million bond issue

 

Awarded with a fifth star and ranked second in the peer group of 13 in the GRESB

    

2017

 

Combined two Amsterdam offices and Maastricht office in one head office in Amsterdam (De Boel)

 

Vesteda participants invested €280 million for continued growth in mid-rental segment

 

More focus on tenant satisfaction

 

Transformation to fully unsecured funding structure

    

2016

 

New fully integrated organisational structure

 

S&P credit rating upgrade to BBB+

    

2015

 

Focus on growth and sustainability of our portfolio

 

€600 million equity raise: two new leading international investors in Vesteda

 

Commitment to invest additional €23 million over next five years to improve the sustainability of the portfolio

 

Termination CMBS programme

    

2011

 

Focus on mid-rental segment

 

New, more transparent, commercial, legal and fiscal structure (mutual fund for the joint account of the participants)

 

Relocation of the head office to Amsterdam from Maastricht

    

2010

 

Strategic decision to terminate project development activities; focus on investment activities

    

2008

 

Start of financial crisis: first downward revaluation of portfolio in Vesteda’s history

    

2003

 

Property management brought in-house

 

Start of project development

    

2001

 

Legal and fiscal restructurings to allow new investors to participate

 

30% of shareholders’ equity converted into CMBS funding programme

    

1999

 

Focus on higher rental segment

    

1998

 

Vesteda established as Vesteda Wonen

  • 1 An overview of the tenant survey results (2013-2018) can be found on page 33 of this report.
  • 2 An overview of the MSCI residential benchmark results (2013-2018) can be found on page 26.