Vesteda (Real Estate)

2017 Real Estate Top 100 ranking: 106http://www.vestedareport.com

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Manager Details

Vesteda

Vesteda is a reliable housing company offering good quality and affordable living for the entire residential lifecycle of its tenants.

High-quality institutional residential real estate 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 approximately 27,000 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
• 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
• 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

Sector forecasts

Residential
Economic growth set to continue
The economic outlook for the Netherlands is positive for 2018. Economic growth is expected to continue. This growth is being driven by the continuing increase in business confidence and investments, household consumption, investments in houses and growing exports.

Pressure on owner-occupier and rental markets due to lagging supply
In 2018, we do not expect to see any alleviation of the pressure on the residential market, due to continued economic growth combined with the lagging supply of new build houses. The pressure on the residential market is more likely to increase, especially in the larger Dutch cities.

Competition in investment market pressuring initial yields
The Dutch residential real estate investment market is expected to remain attractive. The structural demand for liberalised sector rental homes, combined with the relatively limited supply, will guarantee relatively stable returns for investors. Now that the economy is picking up (and inflation is rising), there is the risk that the ECB will scale back its bond-buying programme leading to hikes in interest rates that may cause upward pressure on return requirements.

Investment principles & strategy

The profile of Vesteda is that of a ‘core’ investment fund. Investment is only in Dutch residential and housing-related properties.

Our mission
At home with Vesteda. Our mission is to make sure that all our stakeholders feel at home with us. That is especially true for our tenants, the investors who invest in our fund and our employees.

Our vision
Vesteda is the expert in residential living. We have direct contact with our tenants. This is why we know their current and future living requirements better than anyone. We use our knowledge to constantly improve our services and our existing residential portfolio. And we also add residential complexes that are tailored to the living requirements of our tenants now and in the future. We do so in sustainable and innovative ways. Together with our tenants, we create an environment in which they feel at home.

Strategy
Vesteda’s mission and vision are translated into strategic and portfolio objectives.

Strategic objectives
Improve operations
• Increase tenant satisfaction
• Focus on process standardisation and embedding sustainability
• Optimise net rental income

Optimising investment portfolio
• Improve the quality of the portfolio through acquisitions, operations, targeted investments and property sales
• Improve the sustainability of the portfolio
• Increase the size of the portfolio through the acquisition of high-quality complexes and portfolios in targeted segments
• Structural outperformance of the three-year MSCI IPD/ROZ Netherlands 'All Residential' benchmark

Continuously improving organisation
• Continued development of organisation based on HPO framework
• Renew IT platform
• Integrate sustainability into daily operations

Portfolio objectives
In the years ahead, we will continue with our prudent sale of assets outside these regions and those that do not meet our other investment criteria.

Vesteda’s acquisition strategy is focused on both individual complexes and portfolios of residential properties, both new build and existing residential units.

This in combination with our property sales strategy should in the longer term result in a portfolio with an ever-increasing focus on the mid-rental segment, largely in Vesteda’s primary regions.

COMPLIANCE STATEMENT
Vesteda Residential Fund is a contractual investment fund (beleggingsfonds) as defined in section 1:1 of the Dutch Financial Supervision Act (AFS).

The manager, in its capacity as manager and operator of Vesteda Residential Fund, is subject to regulation by the Dutch Financial Markets Authority (Autoriteit Financiële Markten) and the Dutch Central Bank (De Nederlandsche Bank). The manager obtained a license to act as manager of alternative investment funds in accordance with article 2:67 of the AFS on 17 February 2014. The participation rights can only be acquired by professional investors as defined in section 1:1 of the AFS.

This presentation may contain forward-looking statements. These forward-looking statements are based on current assumptions about future activities and are subject to known and unknown factors and other uncertainties, many of which are beyond Vesteda’s control, and so actual results in the future may differ materially from these expectations.

News from Vesteda (Real Estate)

  • Vesteda and Meacasa sign for 31 energy-neutral all-electric homes in Heerhugowaard weblink

    Residential real estate investor Vesteda has signed a contract with project developer Meacasa from Nijkerk for the turnkey acquisition of 31 energy-neutral all-electric houses. The homes will be built in the new neighbourhood development De Draai in Heerhugowaard. Construction has already started and delivery is expected in the first half of 2019.

  • Vesteda successfully issues €500 million 8 year bond with a 2.0% coupon weblink

    Yesterday, Vesteda successfully issued its third corporate bond under its €2 billion EMTN programme. The €500 million benchmark size bond has a term of eight years and a coupon of 2.0%. The bond was more than two times oversubscribed. ABN AMRO, BNP Paribas, Deutsche Bank and Rabobank acted as arrangers and bookrunners and AXECO acted as financial advisor to the issuer. The bond will be listed on Euronext Amsterdam.

  • Vesteda acquires €1.5 billion Dutch residential real estate portfolio from NN Group weblink

    Dutch residential real estate investor Vesteda today announces that its Participants unanimously approved the acquisition of a €1.5 billion Dutch residential real estate portfolio from financial services company NN Group. The purchase price will be paid for the most part in equity and for the remainder in cash. 

  • Vesteda and Koopmans sign turnkey contract for 55 homes in Arnhem weblink

    Dutch residential real estate investor Vesteda has signed an agreement with TBI company Koopmans Bouwgroep for the turnkey acquisition of 20 houses and 35 apartments in the Schuytgraaf urban expansion neighbourhood in Arnhem. This is the fourth project that Vesteda has acquired in this neighbourhood in recent years. Vesteda expects to take delivery of the completed project in the second half of 2019.

  • Vesteda aims at healthy living with WELL Building Standard weblink

    Residential real estate investor Vesteda has registered for a Well Building Standard certification with its apartment building ‘Aan de Rijn’ in Arnhem. Vesteda is the first in the Netherlands to enrol for Well Building Standard certificate for a residential building.

View more News from Vesteda (Real Estate)

News from IPE Real Assets

View more News from IPE Real Assets

White Papers / Research from Vesteda (Real Estate)

  • Vesteda Review H1 2018 download

    There is currently a great deal of pressure on the housing market. The number of homes for sale has fallen steadily, which resulted in a further increase in house prices in the first half of this year. The continuing rise in house prices has put even more pressure on the affordability of homes. 

  • Vesteda Update H1 2017 download

    Growth in the Dutch housing market was once again considerable in the first half of the year, on the back of the strong economy, confidence in the housing market and low mortgage interest rates. 

  • Vesteda Update: H1 2016 download

    Housing market at full steam

  • Vesteda Annual Report 2015 download

    2015 rocked the house. We saw the total return more than double to 14.0% and we raised €600 million in equity; an exceptionally high return for a low-risk core residential fund and a record amount of funding.

  • Vesteda Update: FY 2015 download

    2015 rocked the house. We saw the total return more than double to 14.0% and we raised €600 million in equity; an exceptionally high return for a low-risk core residential fund and a record amount of funding.

View more White Papers / Research from Vesteda (Real Estate)

Analysis from IPE Real Assets

Head Office
De Boelelaan 759
Amsterdam
1070 AR
The Netherlands
Contact
Mirjam Witteman Tel. +31 88 456 23 69

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What’s new

  • vesteda review h1 2018

    Vesteda Review H1 2018

    White papersTue, 14 Aug 2018

    There is currently a great deal of pressure on the housing market. The number of homes for sale has fallen steadily, which resulted in a further increase in house prices in the first half of this year. The continuing rise in house prices has put even more pressure on the affordability of homes. 

  • Vesteda and Meacasa sign for 31 energy-neutral all-electric homes in Heerhugowaard

    Asset Manager NewsThu, 26 Jul 2018

    Residential real estate investor Vesteda has signed a contract with project developer Meacasa from Nijkerk for the turnkey acquisition of 31 energy-neutral all-electric houses. The homes will be built in the new neighbourhood development De Draai in Heerhugowaard. Construction has already started and delivery is expected in the first half of 2019.

  • Vesteda successfully issues €500 million 8 year bond with a 2.0% coupon

    Asset Manager NewsWed, 4 Jul 2018

    Yesterday, Vesteda successfully issued its third corporate bond under its €2 billion EMTN programme. The €500 million benchmark size bond has a term of eight years and a coupon of 2.0%. The bond was more than two times oversubscribed. ABN AMRO, BNP Paribas, Deutsche Bank and Rabobank acted as arrangers and bookrunners and AXECO acted as financial advisor to the issuer. The bond will be listed on Euronext Amsterdam.

  • Vesteda acquires €1.5 billion Dutch residential real estate portfolio from NN Group

    Asset Manager NewsFri, 22 Jun 2018

    Dutch residential real estate investor Vesteda today announces that its Participants unanimously approved the acquisition of a €1.5 billion Dutch residential real estate portfolio from financial services company NN Group. The purchase price will be paid for the most part in equity and for the remainder in cash. 

  • Vesteda and Koopmans sign turnkey contract for 55 homes in Arnhem

    Asset Manager NewsTue, 19 Jun 2018

    Dutch residential real estate investor Vesteda has signed an agreement with TBI company Koopmans Bouwgroep for the turnkey acquisition of 20 houses and 35 apartments in the Schuytgraaf urban expansion neighbourhood in Arnhem. This is the fourth project that Vesteda has acquired in this neighbourhood in recent years. Vesteda expects to take delivery of the completed project in the second half of 2019.

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