Dutch Real Estate: Search for suitable investment properties in the Rheinland
Dutch Real Estate Investments GmbH (DREI), Cologne, subsidiary of the Dutch property concern Newomij, wants to develop a property portfolio of over €200mn in the next five years. The primary focus shall be on the Rheinland, including Cologne, Düsseldorf, and Bonn. The center of focus shall be new development and existing supply for residential usage, but selected office or retail properties, as well as mixed-use sites, will also be considered. For the acquisition of new project developments, a beginning gross yield of more than 4.8% was required for value enhancement potential, for portfolio properties, the beginning gross yield had to be larger than 5.5%.
In DREI's field of vision, there are locations with more than 10,000 residents, as well as “integrated sites with a positive development outlook,“ said DREI's managing director Ingo Kronenberg to THOMAS DAILY. Besides cities' top sites, there were also good sites in city centers, as well as areas adjacent to the centers, with acceptable entertainment areas. This applies to common, as well as premium, sites. DREI quotes the target investment volume per property to be €10mn to €20mn. A property should not, however, be less than €3.5mn. Several investments up to €90mn will be possible, according to Kronenberg.