Netherlands’ largest pension fund ABP is investing €500m in the Dutch Essential Housing Venture, its joint venture with Greystar, which is contributing €26m.
The new investment is the second tranche that follows an initial €420m allocation ABP made to the partnership a year ago, through its asset management arm APG.
With the latest commitment, the €524bn pension fund for government and education employees in the Netherlands is making an initial €200m investment to develop Merwede Block 1, a mixed-use residential complex with 779 rental homes in Utrecht.
The Merwede Block 1 project is the third joint project under the venture, bringing the portfolio to over 2,000 rental homes.
As previously reported, ABP has set a goal to invest €10bn with impact in the Netherlands by 2030, with €5bn dedicated to affordable rental housing.
Harmen van Wijnen, chairman of the Board at ABP, said: “With this second €500m investment, we are taking another significant step towards our ambition to invest €10bn in impactful projects in the Netherlands by 2030. Dutch rental housing – particularly in the affordable and mid-market segments – offers a stable, long-term return that moves in line with inflation. The housing shortage also affects our participants — police officers, teachers, and other public professionals.
“Through this partnership, we are now able to deliver more than 2,000 new, sustainable rental homes. These investments contribute to good pensions for our participants, address the pressing housing shortage, and support a liveable society. In today’s market, it is not easy to find projects that meet our return and risk requirements. That is why we are pleased to have secured this direct investment in Merwede Block 1.”
Mark Kuijpers, senior MD Central Europe at Greystar, said: “With this investment, we are once again taking an important step in our collaboration with ABP and APG. This is already our third joint investment within just a year, bringing the total number of new rental homes under development to more than 2,000.
“In Utrecht, we are adding nearly 800 homes to a sustainable, mixed-use urban district in development – a tangible example of how we contribute to future-proof, inclusive living environments in areas with extremely high demand.”
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