Profile Vesteda

High-quality institutional residential investor

Vesteda is an entrepreneurial and service-oriented institutional residential investor with a sizeable and varied portfolio of houses in attractive neighbourhoods in the Netherlands. With a portfolio of more than 22,600 residential units, we are the largest Dutch independent institutional residential investor. Vesteda is internally managed, is cost-efficient and has in-house property management.

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

  • Open-end core residential real estate fund

  • Broad institutional investor base with a long-term horizon

  • Attractive risk profile

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

  • Limited use of leverage (target <30%)

  • Active investor relations policy

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

  • In-house property management

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

  • GRESB Green Star rating

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 approximately 350 residential complexes

  • Focus on economically strong regions such as the Randstad, the Brabant metropolitan area, the Arnhem / Nijmegen City Region and Groningen City

  • Focus on the mid-rental segment (monthly rents of between € 710.68 and approximately € 1,200)

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

  • Outperformance of the three-year MSCI IPD/ROZ Netherlands 'All Residential' benchmark[2]

Key milestone dates in the life of the fund

2016

 

New fully integrated organisational structure

 

Decision to combine two Amsterdam offices and Maastricht office in one head office in Amsterdam in 2017

 

1,147 residential units acquired in 2016

 

Awarded GRESB Green Star status

 

S&P credit rating upgrade to BBB+

    

2015

 

Focus on growth and sustainability of the portfolio; 550 residential units acquired and added to committed pipeline

 

€ 600 million equity raise: two new leading international investors in Vesteda; termination CMBS programme

 

€ 20 million additional investment in next five years to improve the sustainability of the portfolio

   

  

  

2011

 

Focus on mid-rental segment: gradual reduction of the proportion of investments in the higher and regulated rental segment

 

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

 

Relocation of the head office from Maastricht to Amsterdam

    

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 Woningen