An investor group led by TPG Angelo Gordon and its investment and operating partners, Dream Unlimited and Stadium Capital Partners, has agreed to buy a Dutch residential portfolio from European Residential REIT (ERES) for around €695 million.
The closing of the acquisition is subject to customary closing conditions and is expected to be completed by early next year.
Early July, CoStar News first reported on talks between TPG Angelo Gordon and ERES. Last week, CoStar reported a deal had been agreed, with transfer of ownership early next year. The deal is bigger than the €400 million earlier talked about.
The agreement includes nearly 3,000 single-family and multifamily units across close to 90 sites in the Netherlands. The units will be managed and operated by the investor group, all of whom have significant local market resources and expertise, said TPG. Separately, ERES confirmed the sale, but said it had sold a further 232 units for €44 milion and a commercial building in Germany for €9 million to another investor.
In June 2023, ERES hired CBRE to sell its €1.68 billion Dutch residential portfolio due to rising interest rates and tighter rental regulation, as reported. However, bids fell short of ERES' expectation and it decided to sell individual units.
“TPG Angelo Gordon is deeply familiar with this portfolio, and together with our partners, we are dedicated to providing tenants a best-in-class experience and homes they can call their own," said Anuj Mittal, TPG Angelo Gordon’s head of Europe real estate. "Our operating partners are experienced local market leaders in this regard, and we look forward to our continued collaboration in the Netherlands. We are grateful to ERES for their productive partnership throughout this process.”
“Our partnership with TPG Angelo Gordon and Stadium Capital aligns with our strategic focus on the residential sector,” said Jane Gavan, president, asset management of Dream. “This joint venture allows us to leverage our extensive expertise in residential asset management and builds on our long history of investing and operating in Europe across multiple asset classes.”
Stadium Capital co-founder and managing partner Richard Stolle adde: “We are looking forward to bringing our proven experience, knowledge and dedication to operating this portfolio of assets. We plan to deliver our characteristic high-quality service to tenants and other stakeholders.”
The transaction adds to TPG Angelo Gordon's sizable real estate presence across Europe, with experience spanning 13 countries and a network of more than 50 European operating partners.
(Updated on 17 September with additional details from ERES in the fourth paragraph)