High prices lead institutional investors to sell property portfolios: FD

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Institutional investors are selling hundreds of millions of euros worth of Dutch property in an end of year surge, the Financieele Dagblad said on Tuesday.

German investment company Patrizia is selling €200m worth of homes it bought from defunct housing corporation Vestia several years ago and other investors, including Amvest, Vesteda, Syntrus Achmea, Bouwinvest and pension fund Wonen are also making year-end divestments, the paper said.

The portfolios on offer range in price from €50m to €250m and in total up to €800m worth of property could change hands, the paper said.

Rental property is seen as stable investment and the high prices are the main reason why investors are now selling. Investors used to pay between 80% and 90% of the price of a value of a property without tenants but that has now gone up to 100% or more, the FD said.