Union Investment has expanded its portfolio in the Dutch residential property market with the acquisition of the Urban Villas residential project in Amsterdam Noord for €80 million.
The Hamburg-based real estate investment manager acquired the residential project for the portfolio of open-ended real estate fund UniImmo: Global.
Union Investment said this marks the fourth major transaction in Amsterdam’s residential property market following the acquisition of the Y-Towers in 2019, the AMST residential project in 2020 and the Pulse development in 2021.
The vendor is CZAN Rood BV, a joint venture between Dutch project area developers AM and Blauwhoed.
“The Urban Villas project gives us exposure to an up-and-coming residential location in the Amsterdam Noord development area that is a perfect fit with our portfolio. Due to the comparatively low rent levels and excellent links to downtown Amsterdam, we anticipate strong and stable tenant demand for this location,” said Martin Schellein, head of Investment Management Europe at Union Investment Real Estate GmbH.
Urban Villas is located in Amsterdam, currently one of Europe’s most attractive cities, and is part of a consolidating development zone with excellent public and private transport links. The city centre and main railway station are just two subway stops away. Letting risk is regarded as low due to the city’s lack of affordable housing.
The residential project comprises four buildings with a total of 173 apartments and rental space of 12,308 sq m. Completion is scheduled for 2024. The four five- to six-storey residential buildings were designed by architects Office Winhov, Bedaux de Brouwer Architecten, Marcel Lok architect en Korthtielens. Accordingly, each one is separate and distinctive, with an underground car park being the sole point of connection. The buildings meet the latest energy regulations and are virtually energy neutral.