Dream Global REIT is making its first foray into the Netherlands by purchasing Merin, one of the largest commercial real estate platforms in the country, from TPG and Patron Capital Partners for €622m (£552m).
The Canadian REIT is financing the acquisition with the proceeds of a recent €300m public offering and a planned €375m offering of unsecured notes in Europe.
Merin owns and manages 101 office assets, which provide 715,000 sq m of gross leasable area and have a gross value of €502m.
Merin was acquired by TPG Real Estate, TPG Sixth Street Partners and Patron in 2012.
Under TPG Real Estate, TSSP and Patron’s ownership, Merin has become one of the largest and most successful Dutch real estate platforms. A new management team led by Bas van Holten has substantially repositioned the portfolio through a combination of asset management, refurbishment and more than 50 acquisitions and disposals. The sale represents the third major transaction for Merin this year following a significant add-on acquisition and a €440m refinancing.
Merin said: “We are dedicated to the creation of high-quality, sustainable and tenant-focused modern working environments, with approximately 170 office and industrial assets. Due to a strong focus on tenant satisfaction, Merin has one of the highest customer satisfaction scores in the Netherlands and has significantly improved occupancy and tenant retention since the initial acquisition.”
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