NN Groep sells 6,777 homes in €1.5 billion rental market deal

NN Groep is selling a portfolio of 6,777 homes to residential investor Vesteda for 1.5 billion euros, the two parties announced on Friday. This is one of the biggest deals ever on the Dutch rental housing market. Vesteda CEO Gertjan van der Baan called the scope of the deal unique, NU.nl reports.

The deal involves 5,983 existing homes with a value of 1,295 billion euros, and 794 homes that still need to be built worth 214 million euros. The homes are spread across the Netherlands, but are mainly located in Amsterdam and Utrecht. This mainly concerns rental housing in the middle-rent segment, and a small amount of social housing.

In exchange for the properties, NN Groep receives an interest in Vesteda and 429 million euros in cash, part of which will go to property developers, according to the newspaper. The agreement is expected to be completed by the end of this month.

Once this deal is done, Vesteda's portfolio will consist of 27 thousand homes with a total value of 6.3 billion euros.