APG has launched an online platform to provide long-term loans to Dutch building societies and has issued a €20m loan to a local housing corporation.
Through the new auction platform – LIST Amsterdam – institutional investors can provide long-term loans directly to Dutch building societies.
The €463bn Dutch asset manager said it teamed up with the corporations and requested LIST Amsterdam to set up the platform.
Housing corporations need alternative providers for capital, whereas institutional investors are keen to provide long-term loans as they deliver stable and reliable results.
Sandor Steverink, a manager in charge of treasuries and inflation-linked debt at APG, said: “We would like to issue long-term loans, because of their stable returns. Moreover, our clients’ goal is to increase their local investments where possible.
“This way, we can also contribute to improving the sustainability of existing and new housing.”
APG invests through the platform on behalf of the €399bn civil service scheme ABP, the industry-wide scheme for the building sector (BpfBouw), the pension fund for the housing corporations (SPW) as well as its own staff pension fund.
It issued its first loan to De Alliantie, which covers Amsterdam, Almere and Amersfoort, and said that another loan was lined up.
A spokesman added that the amount of the loans was expected to range from €5m to €50m.
In addition to the task of building tens of thousands of new homes annually, Dutch housing corporations are to improve the sustainability of their more than 2m homes.
APG said that this required financing of sustainable loans of approximately €100bn in the next 30 years.
APG said that, with the new platform, supply and demand of private loans to housing corporations would be organised efficiently and effectively, resulting in lower investment costs and cheaper loans for the corporations.
The asset manager said that the loans on LIST Amsterdam would be guaranteed by the government through the local social housing guarantee fund.