The launch of a new real estate investment fund of approximately €0.8bn in a strongly declined market. For investors an opportunity to invest alongside a large Dutch institutional investor in high quality residential assets in core locations in the Netherlands. The Dutch residential market, however, fell sharply in the years prior to 2012. Therefore investors are not yet convinced of the recovery potential of the residential market and are hesitant to invest.
Direct access to seeded product, market practice fees, a sound governance, and a good liquidity mechanism. CBRE has thorough knowledge of investor’s needs. Alongside the experience of a manager with a strong track record, CBRE focused on these specific characteristics. A select group of domestic and international institutional investors that were open to this strong growth market was targeted.
During the process the team took care of:
Preparation of marketing materials and placing documents
Building and maintaining a bespoke financial model
Establishment of the vehicle structure
Commercial due diligence of the portfolio
Supporting the fund manager with investor negotiations and closing of the transaction
In three consecutive closings with various investors, a total equity commitment of €150m took place within 12 months.