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 Dfl 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 an office/retail property in The Hague. It currently yields over 9% net and also have medium term growth potential.
With the German market in the doldrums, European City Estates is currently concentrating on the Benelux countries. According to Cotton, the partnership with Pelham gives it further potential to growth throughout Europe.
For Pelham and Apollo, the deal represents a strategic entry into the Netherlands. The two also have joint ventures in the UK, Spain and Belgium.
EGi News 16/07/97
