Vesteda Residential, the Netherlands’ largest institutional real estate investor, faces a €4.1 billion wave of redemption requests as foreign investors flee due to new tax rules. Nearly half of its €10 billion portfolio is now under pressure from pension funds and insurers seeking exits. The fund’s investors, primarily foreign pension vehicles, face a 25.8% corporate tax rate on real estate gains after losing zero-tax eligibility in 2023.

This shift, combined with an 8.6% property price surge in 2025, has triggered portfolio reallocations. Vesteda’s seven-year holding period delayed responses, leaving little time to adjust before redemptions spiked.