Real assets fund manager Patrizia has fomed a joint venture with Revive Fund Management to invest €75m of equity to develop environmentally and socially sustainable affordable housing in the Benelux region.
The launch follows similar projects in the UK and Ireland by Patrizia’s Sustainable Communities, an Article 9 strategy (under the EU’s Sustainable Finance Disclosure Regulation) dedicated to impact investing and aiming to provide thousands of affordable and sustainable homes in major European metropolitan areas.
To date, the strategy has invested in six affordable and social housing projects, delivering a pipeline of around 1,000 apartments and homes for lower-to-middle income residents.
The JV will focus on the conversion of depleted and obsolete office buildings into build-to-sell multi-family homes to help address the severe shortage of good quality housing in locations across Benelux.
All homes developed by the platform will targeting A-rated energy performance certificates and a zero operational carbon footprints, as well as embodied carbon targets.
Each development will also have ecological initiatives, enhance biodiversity and aim to make a positive impact on local communities through social initiatives, such as fostering community engagement and wellbeing to address social isolation, a major issue in Belgium particularly, the partners said.
Patrizia said that the strategy was currently outperforming its 12% target internal rate of return.
Marleen Bekkers, fund manager of Patrizia Sustainable Communities, said: “Our partnership with Revive leverages their extensive expertise in the Benelux affordable housing market and sustainable construction. Together, we are committed to addressing the urgent need for high-quality, affordable housing for key workers, delivering impactful solutions where they are most needed.
“The platform has the potential to deliver real social value, as well as attractive risk-adjusted returns, strengthening our purpose of building communities and sustainable futures. The launch of this JV marks an exciting next step in our ambition to house 7,500 people in affordable and social homes through our pan-European impact investment strategy.”
Nicolas Bearelle, executive chairman at Revive, said: “In the current economic environment, the need for housing options that connect communities has never been bigger. Together with Patrizia, we aim to fulfil our ambition of addressing the ever-growing shortage of affordable housing in the Benelux. This strategy will set a benchmark for delivering environmentally and socially sustainable housing for a market segment that today is undersupplied.”
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