A European real estate fund managed by Hines has made its makes first residential investment with the acquisition of a mixed-use residential and office development in Amsterdam.
Hines said the Hines Pan-European Core Fund (HECF) is forward funding the Pontkade Phase 3 project within Amsterdam’s NDSM-West regeneration area, a large area of regeneration around the former shipping docks in the north of the city.
HECF has acquired the site from BMB ontwikkeling, part of construction group VolkerWessels, and Reggeborgh Vastgoed. Financial details were undisclosed.
The Pontkade Phase 3 project, which will consist of an 18 storey residential tower and a 7 storey office building, is expected to complete by the end of 2022.
The development will consist of 208 apartments for rent, alongside 1,600sqm of office space and 800sqm of ground-floor commercial space for retail use.
Since 2019, the HECF has sought to increase exposure to residential and urban logistics assets in key European cities within its portfolio.
The Pontkade Phase 3 acquisition represents the first private rented sector investment by the fund and further residential investments are expected to complete in the coming months, the manager said.
Peter Epping, senior managing director and HECF fund manager at Hines, said: “Our investment underlines our strategy of targeting high-quality private rented sector assets and build to rent projects, alongside traditional Core assets, within the HECF.
“Alongside the growth of our office and logistics investments, it is a key target to expand our residential invest programme in other key European cities with good prospects for long-term rental growth.”
Andy Smith, managing director and country head for the Netherlands at Hines, said: “Amsterdam Noord and the NDSM area is a dynamic new place to live, with high-quality shops, bars and restaurants, and with significant further development in the pipeline.
“The Pontkade Phase 3 site benefits from strong transport connections, including easy access to Amsterdam’s central station, and will be highly attractive to Amsterdam’s growing rental population.”