Dutch pension fund ABP has partnered with CBRE Investment Management to invest in housing in the Netherlands with an initial commitment of €350m.
The new residential development-led mandate’s initial commitment includes a co-investment from CBRE IM with a plan grow the portfolio to €1bn within five years and deliver over 3,000 units.
The partnership, focused on affordable housing, has begun deploying capital with the forward-funding acquisition of a multifamily building in Utrecht, part of the large mixed-use inner city area development Cartesius residential project, with plans to invest in 700 units in the near future.
The first acquisition in Cartesius is expected to be completed in 2028.
Harmen van Wijnen, chairman of ABP executive board, said: “The housing shortage remains as high as ever. By investing in affordable rental housing, we are doing what ABP stands for as a long-term investor: building a good pension together in a liveable world. Dutch residential real estate – especially in the affordable and mid-market segments – offers long-term stability and inflation-linked income.
“Until 2030, we want to invest €10bn with impact in the Netherlands, of which €5bn will be in housing. The partnership with CBRE IM aims to add more than 3,000 affordable and sustainable homes in the middle segment in five years.
“Many people with key professions, such as police officers and teachers, are also our participants. They are currently trapped in the tight housing market. Of course, our first priority is a stable and purchasable pension for our participants, but in addition, we are happy to contribute to fighting the housing shortage.”
Bas Tiemstra, head of separate accounts EMEA at CBRE Investment Management, said: “The mandate will invest in modern residential properties, delivering much-needed affordable homes with strong environmental credentials, at scale. Historically, the Dutch residential market has seen low vacancy rates and a downward supply trend.
“The undersupply of high-quality rental homes, combined with expected population growth, means there will be strong demand for the affordable homes the mandate will invest in long into the future.”
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