Dutch civil service pension fund ABP and Rockfield Real Estate have committed €350m in starting capital for investments in new student accommodation in the Netherlands. More than 90% of the capital has been committed by ABP.
The pair have launched a new joint venture, the Student & Starter Social Living Venture (SSLV), for the purpose. The vehicle will invest in “large-scale accommodation” of between 250 to 500 units, with an average size of 20sqm. Over the next few years, more than 2000 units are supposed to be built.
The investment is part of a wider ABP strategy to invest several billion euros in Dutch residential real estate.
Housing crisis
The Netherlands has an acute shortage of housing, which is felt strongly by the country’s student population who find it harder every year to find accommodation. As a result, a growing share of students choose to live with their parents for longer.
“By investing in affordable housing for first-time buyers and students, we are generating stable, long-term returns for our members whilst helping to alleviate the housing shortage,” said Harmen van Wijnen, president of ABP.
He added: “When young people are able to find a place of their own, and as a result more people are able to find suitable housing, it creates momentum throughout the entire chain. This investment is in line with our strategy of investing in projects that make the Dutch housing market healthier and more resilient.”
Wouter van den Eijnden, CEO of Rockfield Real Estate, said: “Students and young professionals deserve more than just a room; they deserve a place where they feel at home and are part of a community. At SSLV, we seek partnerships with property developers for development and turnkey projects that enable us to guarantee the quality of the buildings. By keeping property management and community management in-house, we can deliver on that promise on a large scale.”
Prospective tenants will have to be under 27 years of age and have to provide proof they are enrolled in a higher education institute in the Netherlands. In addition to the student accommodation, small studios for young professionals will also be built.
The strategy will focus on “cities with a large and growing student population, supported by leading universities and a strong knowledge economy,” ABP said. A decision about which cities will be targeted is still forthcoming, according to a spokesperson for the fund.
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