APG has acquired a €3.0 billion Dutch mortgage portfolio on behalf of pension fund ABP. The portfolio was acquired from an investor on Nationale-Nederlanden Bank’s (NN Bank) mortgage platform. The transaction further expands ABP’s Dutch mortgage investments managed by APG.
The acquired portfolio consists primarily of mortgages originated in 2020 and 2021 and covers more than 10,000 households across the Netherlands. Around 58% of the portfolio was used to finance homes with an energy label A. The mortgages were originated under the “NN Hypotheek” label and will continue to be serviced by NN Bank.
Dutch residential mortgages are well suited to long-term pension investors. Their long maturities provide predictable cash flows and can offer attractive returns with a relatively low risk profile.
Menno van den Elsaker, Head of Private Debt and Dutch Mortgages at APG, said: “This transaction is one of the largest Dutch mortgage portfolio acquisitions in recent years, and we are very proud to have completed it. The portfolio combines attractive returns with a low risk profile, making it a strong fit with ABP’s long-term investment objectives. We look forward to working with NN Bank, which will be an important addition to our existing strategic relationships with mortgage lenders.”
“What stood out to us was the combination of scale and quality. Acquiring a portfolio of more than 10,000 mortgages requires thorough analysis and close cooperation between all parties involved. We are pleased to have completed a transaction that adds a sizeable, well-diversified portfolio to ABP’s mortgage investments,” said Kay Mennens, who worked on the transaction together with fellow senior portfolio manager at APG Arber Demaj.
Read the press release.