Round Hill Capital Sells Netherlands Residential Platform to Heimstaden AB

Posted on 03/27/2019


Round Hill Capital sold a 536-asset Netherlands residential property portfolio for €1.39 billion to Swedish real estate group Heimstaden AB (publ), a listed company. This portfolio includes 12,300 lettable units comprised of 9,544 residential units, 77 commercial units, 2,112 parking spaces, and 567 other units, such as storage space. The acquired properties are geographically spread across the Netherlands with some concentration in the Randstad region. The buyer projects rental income amounts to approximately €76 million annually and net operating income to approximately €51 million.

In addition, Heimstaden hired Carnegie Investment Bank and Swedbank as financial advisors to investigate the conditions for Heimstaden to issue hybrid bonds with eternal maturity on the Nordic capital market. Heimstaden also is getting a subordinated shareholder loan from Fredensborg AS in the amount of €100 million. Fredensborg AS is the largest shareholder of Heimstaden, owning 13,404,000 shares, or 86.21% of the share capital. Fredensborg is a Norwegian real estate investment company owned by Ivar Tollefsen, which focuses on residential assets and markets in Scandinavia, Germany, and the Netherlands.

Round Hill Capital formed the Netherlands residential platform on behalf of its investors in 2014. Heimstaden is one of the largest residential property companies in the Nordic region.