Landbouw, the Dutch industry-wide pension fund for agricultural workers, and Rabobank pension fund are investing €60m in the regeneration of Amsterdam’s red light district, known for its sex and drugs trade.
The investment by the two schemes comes via Syntrus Achmea Real Estate & Finance.
The funds have taken a 35% stake in the vehicle, covering an initial portfolio of 133 buildings.
As reported in May, Syntrus Achmea Real Estate & Finance is taking part in a €300m makeover of the 1012 postcode district through the PPP project – a co-operation with Amsterdam city council and housing corporation Stadgenoot.
Henk Jagersma, the firm’s chief executive, said: “Dutch pension funds have a duty towards their members to maximise their risk-adjusted investment returns in a socially responsible way.
“By applying impact-investing principles in Amsterdam’s city centre, we can achieve a solid uplift in property values for a low level of risk.”
Landbouw and Rabobank pension fund have also received preferential negotiating rights with Amsterdam Municipality for four residential development locations worth €150m around the city’s main A10 ringroad.
The sites will be used for the construction of around 750 mid-priced rental apartments.
At the IPE Real Estate Conference & Awards in Amsterdam in May, mayor Eberhard van der Laan said the city needed “huge numbers” of residential properties to be built over the coming decade.