AEW is buying a residential development in the Netherlands for a German pension fund.
The global real estate investment manager is forward funding the development of the Nova build-to-rent scheme in The Hague on behalf of a separate account mandate backed by the unnamed German pension fund.
AEW said it has acquired the project from local developers Borghese Real Estate and COD. Financial derails were undisclosed.
Nova, which forms part of the wider regeneration of Maanplein located in the Binckhorst in The Hague, is expected to be completed in the second half of 2024. The Nova project will comprise 183 apartments.
The Maanplein area was bought by Borghese Real Estate and COD in 2016 and is being transformed from 80,000sqm of offices into a mixed-use area with around 50,000sqm of office and retail space as well as approximately 600 apartments. Nova is the final development at Maanplein and its delivery represents the completion of this project.
Frederique Weber, country manager, the Netherlands at AEW, said: “The Netherlands is a frontrunner in implementing green initiatives in the housing market. Additionally, evidence from the owner-occupied market already indicates that there is a constantly growing appetite for sustainable homes, which is having a positive knock-on effect on the BTR sector, as tenants become more aware of eco-friendly living spaces.
“Against this backdrop, Nova will play an important role in re-shaping the Binckhorst area by offering state-of-the-art, residential units for both local and international occupiers, where there is strong demand.”
Lars-Henning Pylla, fund manager of the separate account mandate at AEW, said: “The focus for this separate-account mandate, especially in the residential segment, is early positioning in micro-locations of major European cities, which are benefiting from public and private structural initiatives in the medium- to long-term.”
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