Vestia signs purchase agreement for 5,500 homes with German investor

Vestia considers PATRIZIA to be a very suitable and reliable buyer. The sale offers a significant contribution to Vestia’s sustainable financial recovery and perfectly matches its objective of focusing on its core area in the regions of Haaglanden and Rijnmond.

Unique sale
No residential portfolio of this size has ever before been sold in the Netherlands. The portfolio had been up for sale since 20 March 2014. Interested parties from the Netherlands and abroad were able to bid for this portfolio until 14 May. The original portfolio comprised approximately 6,500 homes, but during the process Vestia decided to exclude a specific part of the portfolio, specifically the care facilities, from the transaction. In its final form, the agreement covers approximately 5,500 homes being sold by Vestia to PATRIZIA. “We are very pleased with this sale”, says Arjan Schakenbos, Executive Board Chairman of Vestia, on the agreement. “It is an excellent offer that makes a significant contribution towards our sustainable financial recovery. At the same time, PATRIZIA is taking over a large number of employees who know property really well, which is a positive development for everyone involved”.

Follow-up
The Ministry of the Interior and Kingdom Relations (BZK) must consent to the sale and will verify it against Circular MG 2013-02. The circular describes the general terms and conditions of the sale by housing corporations to commercial parties. Vestia will pay particular attention to the views of the municipalities in which properties are being sold. The Supervisory Board, the Central Fund for Social Housing (Centraal Fonds Volkshuisvesting, CFV) and the Social Housing Guarantee Fund (Waarborgfonds Sociale Woningbouw, WSW) also must approve the sale. Expectations are that by the end of 2014, PATRIZIA will formally be the new owner of the residential portfolio of 5,500 homes. This agreement is in line with the realisation of our desired growth and long-term investments in Europe”, says Klaus Schmitt, Chief Operating Officer and Management Board member of PATRIZIA Immobilien AG.

Tenants’ interests
Given Vestia’s social responsibility, the company has proceeded carefully during the sale process. Potential buyers have undergone thorough screening. In the interests of the tenants, Vestia has agreed that the buyer will sign codes on integrity and careful and ethical treatment. In the case of the existing tenants, all valid rights and obligations in the current lease will be maintained.

Marijn Snijders, director of Capital Value: “There has been a lot of interest in the Vestia portfolio. It is a historic event for an international long-term investor to accede to the Dutch market on such a large scale. The enormous amount of capital that is available can have a positive influence on the realisation of new rental housing. Many banks and investors have capital available, which will give the residential market a real boost.” For more information about this transaction, please do not hesitate to contact Ing. M.A. (Marijn) Snijders RT MRICS. Read more: The Wall Street Journal, 24 July 2014: Dutch Property Group Stichting Vestia sells portfolio to Patrizia Immobilien