The Dutch Essential Housing Venture, a joint venture between Netherlands’ largest pension fund ABP and Greystar, has added 560 newly constructed homes in The Hague to its portfolio.
The partnership has agreed to acquire the homes, for middle-income renters, at Waldorp Four in the central innovation district (CID) from developer Sustay for an undisclosed amount.
Earlier this year, the €533bn pension fund ABP announced it was allocating €30bn to impact investments, €5bn of which will go to the building of new affordable housing in the Netherlands.
In June, the pension fund, through its asset management arm APG, partnered with Greystar in the €420m Dutch Essential Housing Venture, rental properties development venture. The joint venture builds on the two firms’ relationship which has seen the Dutch manager invest in the living sector, gaining an exposure to Asia and US markets.
Harmen van Wijnen, chairman of ABP, said: “The demand for affordable rental housing remains as strong as ever. Investing in rental homes is therefore a stable source of returns for us as a pension fund. ABP has set a goal to invest €10bn with impact in the Netherlands by 2030, with €5bn dedicated to affordable rental housing.
“This allows us to build a stable and sustainable pension for our participants. At the same time, we can make a difference for people seeking housing—including our own members—by ensuring that affordable homes for police officers, teachers, and others are built quickly. In recent years, we have frequently demonstrated our ability to help initiate residential projects across the Netherlands.”
Mark Kuijpers, senior Central Europe MD at Greystar, said: “It’s fantastic news that, so soon after the launch of the Dutch Essential Housing Venture, we are already able to make a second major investment. Through this project, we are reinvesting Dutch institutional capital in a key employment hub.
“The government’s goal is to build 100,000 homes per year, and investor capital is crucial to achieving that. This project is a substantial contribution to addressing the housing shortage, as it enables large-scale development in a highly accessible location with excellent connectivity to existing infrastructure.”
Lisette Nijs, area development director for The Hague, said: “With Waldorp Four in the CID, we are taking major steps to address the housing shortage in The Hague in a sustainable and inclusive way. This cooperation shows that we can realise housing for diverse target groups despite the challenging market conditions.
“With three NS railway stations and many amenities nearby, this project contributes to affordable housing in a desirable neighbourhood for future residents.”
To read the latest IPE Real Assets magazine click here.
