Dutch asset manager Bouwinvest has acquired 132 apartments in the former Utrecht City Hall from local fund Rachmaninoffhuis BV.
Financial details were not disclosed.
Bouwinvest said it planned to transform the property into a high-quality sustainable residential building, while retaining its original exterior. The new apartments will comprise 50 m2 to 100 m2, benefitting from an individual outdoor space area of 9 m2.
'The Utrecht acquisition fits squarely into Bouwinvest’s strategy of targeting investments in the mid-market rental sectors of the main urban centres in the Netherlands,' said Michiel de Bruine, director of Dutch residential investment at Bouwinvest.
'We expect demand for these types of affordable rental homes to remain strong over the next decade, supporting the long-term stable income returns that our institutional investor clients are seeking.'
The Rachmaninoffhuis development is located in the neighbourhood of Welgelegen. The area is being transformed from a business zone to residential district and directly adjoins Oog in Al, an existing housing neighbourhood.
After consultation with the local authorities in Utrecht, 53 of the homes (40%) are classified as being within the mid-market rental level segment (€711 - €950 month) for floor areas of between 50 m2 and 80 m2.
