Dutch pension fund Stichting Pensioenfonds ABP, which serves people working in government and education, has partnered with living specialist Greystar to launch a new development-led strategy.
ABP is participating in the strategy, known as the Dutch essential housing venture, via its asset manager APG Asset Management. The programme kicks off with a first tranche commitment of €420 mln.
Through the Dutch Essential Housing Venture, ABP aims to deliver high quality homes for mid-income earners, key workers and pensioners impacted by the lack of rental options in the Netherlands.
The first tranche of the partnership aims to build and operate a portfolio of circa 1,500 new homes in Randstad area and other cities across the Netherlands, primarily via strategic developments that meet a strict set of investment criteria.
Projects will meet specific housing characteristics including efficiently designed units, environmental sustainability (minimum A+++ energy labels and BREEAM Excellent certification) and affordable rents, all within proximity to public transport hubs.
The Dutch Essential Housing Venture has already been set in motion with the acquisition of a development opportunity in Leiden. The project, developed by Ten Brinke Lubro Ontwikkeling, will operate under a new brand and comprise 780 high-quality one-, two- and three-bedroom apartments with ample additional amenity space.
Construction will start in 2024 with the first phase, delivery scheduled for 2027 by Ten Brinke Bouw BV.
Harmen van Wijnen, chairman of ABP, said: 'ABP wants to work together to build a good pension in a livable world. To achieve this, we look for attractive long-term investments, preferably ones that make a difference in the lives of our participants.
'That is why we aim to invest €10 bn with impact in the Netherlands by 2030, of which approximately €5 bn in residential properties.
'The Netherlands has a housing shortage, and our participants experience this too. With this initiative, which will initially cost €400 mlns, we will add approximately 1,300 to 1,500 affordable homes, including in the city of Leiden.
'Homes that our participants who work for the police, in education and for the government can live in. This investment pays out twice to our participants.'
Robert-Jan Foortse, head of real estate Europe, APG, said: 'APG and Greystar have established many successful partnerships around the world over the past 15 years.
'We are very pleased that our first venture together in Europe is in our home market, the Netherlands, with a focus on developing new affordable residential units while targeting key workers as tenants.
'Our largest client ABP has identified this specific segment of their portfolio as a key area in which their investments can make a positive contribution on the lives of the participants in the pension fund.'
Wes Fuller, chief investment officer, Greystar, said: 'Through our partnership with ABP and APG, we're moving forward with an exciting opportunity to bring much needed housing to mid-income earners in the Netherlands.
'As a company, we are incredibly passionate about and highly focused on providing new high-quality housing supply at attainable price points to cities around the world, and we look forward to bringing that experience to the Netherlands in partnership with ABP and APG.'
