Round Hill Capital’s European Multifamily Fund Completes Three Dutch Acquisitions totalling EUR 52.3M
London 26 January 2021 – Round Hill Capital, a leading global real estate investment, development and asset management firm, announces today that its European Residential Income Fund II (ERIF II) has completed three multifamily deals in the Netherlands totalling €52.3 million across 12,946 sqm/139, 360 sq ft of rental properties in Diemen, Leiden and The Hague.
The deals represent the first transactions for the ERIF II closed-ended, Core / Core Plus commingled investment fund since it announced its EUR 200m first close in August 2020. Managed by Round Hill Capital, the fund invests in multifamily housing assets in Europe offering attractive long term yield, focusing on the comparatively stable residential markets of the Netherlands, Germany, and the Nordics.
ERIF II has acquired a 54 unit, 5,113 sqm /55,046 sq ft residential property in Diemen for EUR 23.4m from undisclosed private investors. Diemen is part of Amsterdam’s metropolitan region and is a 20-minute bike ride from the city centre.
The fund has also purchased from private investors the Leaves-complex on Kralendijkkade in Leiden, at walking distance from Leiden’s historical city centre for EUR 14.7m. The 50 apartment building comprises 2,613 sqm /28,126 sq ft and is situated close to Leiden Centraal station, from where The Hague and Amsterdam can be reached in 10 and 30 minutes respectively.
Finally, the Leyster in The Hague, the Netherlands third largest city, has also been acquired from an institutional investor for EUR 14.2m. Its 49 apartments on the Leyweg are spread across 5,220 sqm/ 56,187 sq ft and is nearby the city’s large and attractive Zuiderpark. The residential apartments are located on the upper 10 floors of the building, above municipal offices and a library that are not part of the transaction.
The three properties all boast high occupancy rates, helping to drive strong returns based on long term rental income for ERIF II’s investors. Round Hill Capital will unlock further value by leveraging the expertise of its on-the-ground Netherlands team, which benefits from established in-house investment, asset management and property management capabilities. The company plans to use innovative technology to better engage with tenants and also implement refurbishment strategies to enhance returns at the properties.
Michael Bickford, founder and CEO of Round Hill Capital commented:
“We launched ERIF II to offer investors the opportunity to secure strong returns from residential real estate, backed by our deep understanding of European markets and exceptional operational expertise. In 2021 and over the long term, we believe responsibly managed residential real estate will continue to prove itself as a highly resilient and defensive investment. The current economic conditions have tested many asset classes, yet accommodation continues to provide consistently stable income streams at a time when yield is under intense pressure.
Our pipeline is strong and we expect to deploy additional capital in the near future. We have strong local teams across Europe with the right sourcing and acquisition expertise to secure the best opportunities for our investors.” he concluded.
Round Hill Capital says this is driving investment demand from international institutional investors seeking assets exhibiting predictable, long term returns.
Sander Van den Heuvel, Managing Director Netherlands commented:
“These three acquisitions underline the strength of European multifamily investment activity with the Dutch market driven by the desire to achieve sustainable, affordable urbanisation across its major cities. Once again, our long-term involvement in the Dutch market and local expertise allows us to identify compelling opportunities in order to generate risk adjusted returns at a time when quality affordable housing supply is limited.
Legal advice on the transactions was provided by Dentons. DRS/Gerald Eve assisted commercially on the Diemen and Leiden assets. The assets have been financed with a secured term loan provided by ING Bank NV.
ERIF II is targeting multifamily housing assets with mass market affordability in strong micro-locations that exhibit positive demographic and macroeconomic trends, persisting supply/demand imbalances and strong transport links.