About Vesteda

High-quality commercial residential investor

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 a portfolio of almost 22,500 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 real estate
Well-diversified portfolio consisting of 355 residential complexes
Focus on economically strong regions.
Focus on the mid-rental segment: monthly rents of between €711 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 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

2017	•	Two Amsterdam offices and Maastricht office combined in one new head office in Amsterdam (De Boel)
	•	Entire property management in-house after assuming full management of the North Netherlands portfolio, consisting of around 1,200 homes
	•	853 residential units acquired in 2017
	•	Vesteda participants invested €280 million for continued growth in mid-rental segment; €185 million in commitments plus €95 million in additional investments
	•	Focus on tenant satisfaction
	•	Awarded GRESB Green Star rating with four out of five stars

2016	•	New fully integrated organisational structure
	•	1,147 residential units acquired in 2016
	•	Awarded GRESB Green Star rating with three out of five stars
	•	S&P credit rating upgrade to BBB+

2015	•	Focus on growth and sustainability of our portfolio; 550 residential units acquired and added to committed pipeline
	•	€600 million equity raise: two new leading international investors in Vesteda; termination CMBS programme
	•	Commitment to invest €23 million over next five years to improve the sustainability of our 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
2003	•	Start of project development

2001	•	Legal and fiscal restructurings to allow new investors to participate
2001	•	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 (2016-2017) can be found in the section Tenant Survey.
2 An overview of the MSCI residential benchmark results (2013-2017) can be found in the section Key developments.