Valad Europe has bought the six-strong office-led Netherlands UNO portfolio from Unibail-Rodamco for €140m, financed with an ING Real Estate Finance loan.
ING is understood to have provided a circa €90m five-year loan, which reflects almost 65% LTV, and priced just above 200 basis points for the secondary Netherlands property portfolio.
ING is now expected to syndicate around €20m to €30m of the loan.
Valad Europe acquired the UNO portfolio in a joint venture for which the vast majority, if not all, of the capital has been provided by an unnamed investor as the maiden acquisition in a brand new joint venture partnership dubbed the Valad Netherlands Diversified Partnership (VNDP).
The UNO portfolio acquisition reflects an approximate €50m equity investment from an initial €200m in equity capital seeded by Valad’s unnamed investor, which itself will be leveraged to provide an expected total investment of €500m.
VNDP will leverage investments – across offices, industrials and out-of-town retail sectors in the Netherlands – on a deal-by-deal basis at typically between 60 and 70%.
The UNO portfolio comprising six assets with a mixture of c.53,000 sq m office and c. 6,000 sq m retail space, from Unibail-Rodamco.
Debt financing for VNDP will be sourced from a pool of lenders with whom Valad Europe already has existing relationships, with financing for the UNO portfolio transaction provided by ING.
Last December ING provided a £365m seven-year senior loan to the Safra Group to finance the acquisition of The Gherkin in the City of London, as revealed by CoStar News.
VNDP will seek to acquire good quality, well located real estate targeting both single assets and portfolios, primarily in lot sizes ranging from €10 to €100m.
Christian Bearman, Valad Europe’s head of corporate development and operations, said: “We are pleased to be partnering with an investor who shares our desire to capitalise on this window of opportunity in the Dutch real estate market.
“Valuations and occupancy levels in certain sub-markets of the Netherlands are currently out of sync with the underlying economic recovery, providing an attractive counter cyclical opportunity for the Valad Netherlands Diversified Partnership to invest on a large scale in high quality offices, industrial and out-of-town retail assets in specific strategic locations.”
Mark McLaughlin, Valad Europe’s Head of Benelux, added: “The UNO portfolio is a good example of the type of investments we are targeting for VNDP. Our local team on the ground is actively seeking attractive investments and we look forward to finding suitable deals which meet VNDP’s investment criteria and where we can apply value-add asset management strategies in order to generate attractive returns in the medium term.”
The launch of the Valad Netherlands Diversified Partnership comes soon after it launched a similar vehicle targeting Central European retail assets in October. It now has c.€1.8bn of investment capacity to target acquisitions in the Netherlands, Central Europe, Germany, France and the UK.
Valad Europe manages €4.9bn of real estate assets and investment capacity across 20 funds and mandates in Europe. Valad has a team of 19 people in the Benelux region who currently manage approximately €300m of funds, invested in approximately 60 assets and accommodating 400 tenants.