Vesteda, the Netherlands residential property investment fund, launched a EUR 350 million ($470 million) CMBS tap issue from its Vesteda Residential Funding II BV program.
This is the first European CMBS transaction of 2010 as well as the first Dutch CMBS issue since the start of the financial crisis in 2007. The portfolio of underlying assets is rented multi-family apartment blocks and houses in the Netherlands.
The issue comprises EUR 350 million of A7 notes rated triple-A by Fitch Ratings, Standard & Poor's and Moody's Investors Service.
ABN AMRO acted as sole lead manager for the transaction and Bishopsfield Capital Partners as rating adviser. The notes have been placed with a single investor via a private placement and are underwritten by ABN AMRO.
“The continued high quality of the underlying property portfolio and conservative nature of the financing, were integral to our achieving a 'AAA' rating in a challenging market, ” said Frits van der Togt, CFO of Vesteda.
Vesteda develops, lets out, manages and sells homes and residential concepts. The company’s rental portfolio includes roughly 27,000 units with an approximate value of €5 billion. Vesteda is a private company and its shareholders are Dutch institutional investors.