American Investors target Europe with joint venture
American investor Apollo Real Estate Investment Fund and its London-based stablemate Pelham Partners, have set up a joint venture with European City Estates, taking a stake in a Nfl 70m portfolio of Dutch property.
The venture brings together Stephen Cotton and Peter Beckwith at the Amsterdam-quoted European City Estates (formerly German City Estates) and Roger Orf of Pelham. The partners are keen on pursuing similar opportunities.
European City Estates has put half its Dutch properties into the deal. The portfolio consists of two business parks in Amsterdam and Veldhoven and a 100,000m2 office and retail property in The Hague which has refurbishment potential. The portfolio currently yields over 9% net and has medium term growth potential.
Orff said that with the German market in the doldrums, the joint venture will initially concentrate on the Benelux countries. “Stephen Cotton has vast experience in Germany, and we will be going back there,” he promised.
Pelham and Apollo also have joint ventures in the UK, Spain and Belgium.
Orff said the strategy was always to identify strong local partners and he is on the look-out for more.
