Acquisitions and property sales

Last year was another strong year for the Dutch residential real estate market. Investors continued to pursue residential real estate buying opportunities. Several large existing portfolios were sold at record low yields.

The competition for new-build high-quality residential product remains fierce. Furthermore, rising construction costs, due in part to tightening sustainability requirements, high land prices and the nitrogen crisis are making it difficult for new-build projects to get off the ground. Yield compression in larger cities seems to be bottoming out, while we are still seeing yield compression in smaller cities and municipalities around larger cities. Vesteda continues to target quality rather than volume and remains selective regarding acquisitions.

Portfolio inflow 2019

In 2019, Vesteda added a total of 817 residential units to its investment portfolio, including 1 transformation unit. The table below provides an overview of the new-build additions to the investment portfolio in 2019.

New-build additions to the investment portfolio in 2019

Residential building

Location

Total number of units

Apartments/Family houses

Region

Rental segment

Quarter of completion/delivery

De Boulogne 1

Utrecht

45

Apartments

Primary

Mid

Q1

De Boulogne 2

Utrecht

24

Apartments

Primary

Mid

Q1

De Belvedere 2

Utrecht

16

Apartments

Primary

Mid

Q1

De Belvedere 3

Utrecht

32

Apartments

Primary

Mid

Q1

De Belvedere 4

Utrecht

27

Apartments

Primary

Mid

Q1

De Rossfeld

Utrecht

65

Apartments

Primary

Mid

Q1

Koningoord

Berkel Enschot

33

Family houses

Primary

Mid

Q1

Parijsh

Culemborg

42

Family houses

Secundary

Mid

Q1

Keijzershof

Pijnacker

26

Family houses

Primary

Mid

Q1

Hooghkamer

Voorhout

55

Family houses

Secundary

Reg/Mid

Q1/Q4

De Enter

Amsterdam

96

Apartments

Primary

Mid/High

Q1

Willemstoren

Rotterdam

76

Apartments

Primary

Mid/High

Q2

De Lanen

Rosmalen

39

Family houses

Primary

Mid

Q2

Helenahof

Arnhem

55

Apartm. & Fam. houses

Primary

Mid

Q2/Q3

De Draai

Heerhugowaard

31

Family houses

Secundary

Mid

Q3

Kolenpark

Groningen

139

Apartments

Primary

Mid

Q3

Hoog Dalem

Gorinchem

15

Family houses

Primary

Mid

Q4

Total new-build additions to the portfolio

816

    

Pipeline year-end 2019

In 2019, Vesteda added a total of seven new-build projects, totalling 606 residential units to its pipeline. The total committed pipeline at year-end 2019 was 1,223 units, with an estimated market value at completion of €381 million. All projects are an excellent fit with Vesteda’s portfolio strategy in terms of region, rental segment and energy label. The majority of the projects are located in urban expansion sites of larger cities in the Netherlands, where Vesteda can benefit from the promising continued development of the areas.

Composition of the pipeline at year-end 2019

Residential building

Location

Total number of units

Apartments/Family houses

Region

Rental segment

Completion/delivery

Bensdorp

Bussum

40

Apartments

Primary

Mid

2020

Hoog Dalem

Gorinchem

25

Family houses

Primary

Mid

2020

De Generaal

Rijswijk

120

Apartments

Primary

Mid

2020

Noorderhaven

Zutphen

126

Apartm. & Fam. Houses

Secondary

Mid

2020

De Toren

Hoorn

72

Apartments

Primary

Mid

2020

Zuidpoort

Veenendaal

34

Family houses

Primary

Mid

2020

Koningsoord

Berkel Enschot

32

Family houses

Primary

Mid

2020

Punt Sniep

Diemen

202

Apartments

Primary

Mid

2020

Willemsbuiten

Tilburg

83

Apartments

Primary

Mid

2021

Westerwal

Groningen

171

Apartments

Primary

Mid

2021

Onder de Linden

Oosterhout

39

Family houses

Primary

Mid

2020

Tromppark

Dordrecht

40

Family houses

Primary

Mid

2021

Westergouwe

Gouda

71

Family houses

Primary

Mid

2021

The Ox

Amsterdam

168

Apartments

Primary

Reg/Mid

2022

Total committed pipeline

 

1,223

    

Property sales in 2019

Vesteda divested 1,336 units that no longer met our key investment criteria, in one large portfolio transaction, one smaller portfolio transaction and several individual unit sales. Most of these assets were located in the central and southern parts of the Netherlands. Furthermore, we took advantage of the current attractive market conditions to reduce our stake in what we see as more volatile and higher risk properties that require high operating and capital expenditures and have limited rental upside.