Savills Investment Management (Savills IM) has acquired a new-build, multifamily development in Amsterdam’s Ijburg sub-market in an off-market transaction on behalf of its European living fund.
Completed in April 2023, the six-storey-timber-framed Juf Nienke asset consists of 61 residential units with a total net lettable area of 4,389sqm, with 30 units leased in the mid-rental segment and 31 in the free rental segment. The ground floor of 817sqm consists of commercial space currently let to a kindergarten and a private gym, with 25 parking places.
The Savills IM European Living Fund is an open-end vehicle launched in mid-2023 with a strategy to invest in “modern and affordable living assets with strong sustainability credentials in affluent European cities with supportive economic and demographic trends”, the manager said.
Patrick Au Yeung, fund director, Living, at Savills IM said: “The third investment for our European Living Fund, following transactions in Sweden and Spain last year, this latest acquisition fits perfectly with its strategic remit to invest in high-quality, sustainable assets in key European cities with supportive fundamentals. Amsterdam is one of the strongest residential markets in Europe, with low vacancy risk, and we’re delighted to have secured this newly completed sustainable asset in an off-market transaction – a clear indicator that our European platform continues to go from strength to strength.
“We strongly believe this current vintage will see investors taking full advantage of attractive market timing opportunities. The fundamentals for the rental living segment are robust, and the supply/demand imbalances are acute and likely to persist.”
Edgar Hertog, co-head of the Netherlands, Savills IM added: “This acquisition represents another important step in growing our residential AUM in the Netherlands and Europe. The strong affordability and, particularly, the social element of renting out to mid-income tenants of this asset creates a solid, long-term leasing profile and an attractive risk-adjusted return profile for our investors.
“We look forward to acquiring more assets of similar quality and will continue to focus on assets with a strong ESG story via existing credentials or achieved following active asset management.”
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