Venn Partners has established a Dutch residential mortgage origination arm and plans to expand its lending in the country to €1bn by the end of the year.
The asset manager and credit specialist, headed by managing partner Paul House (pictured) has also recruited Marc de Moor, the former executive director of Belgian bank Argenta to lead the drive. It is aiming to originate €500m of mortgages and at least one RMBS issuance per year on an ongoing basis.
The Dutch residential market began attracting increasing interest from real estate investors last year with companies as varied as Patrizia, Round Hill Capital and Internos Global Investors targeting the asset class. New regulation is encouraging housing co-operatives to sell-off their portfolios providing the prospect of a more evolved private rented sector.
Venn was an early mover, buying €500m of residential loans from GE Artesia early last year which it refinanced through its Cartesian RMBS platform.
De Moor said: “Our target will be the Dutch mortgage market where current dynamics are interesting and challenging. Following seven hard years and a 20% price drop, the housing market is picking up again with increasing volumes of new lending, healthier margins and consumers who are more positive and receptive to new market entrants.”
Venn’s real estate credit business, Venn Finance, launched in January 2013 when Venn Partners head hunted former Citi banker Paul House. House’s team has been lending, mainly in the UK, and last December provided a £97.5m development loan to HUB, the housing developer launched in 2012 by the founders of Squarestone, for the construction of a 360-home scheme in London’s Royal Docks called Hoola.
In December last year Venn was chosen by the UK government to manage a £3.5bn loan guarantee scheme to encourage private rented sector residential investment.