Institutional asset managers CBRE Global Investment Partners (CBRE GIP) and Bouwinvest Real Estate Investors have entered into a strategic partnership with Belgian property developer ION to invest an initial €280 mln in affordable new-build houses and apartments exclusively for the rental market in Belgium.
CBRE GIP, on behalf of one of its clients, and Bouwinvest will be equal investment partners while ION will take a minority interest and act as service provider to the new platform, known as ION Residential Platform (IRP).
IRP will be the very first unlisted institutional housing platform in Belgium. It will focus primarily on Belgium’s largest urban areas. Projects will be sourced from ION’s development pipeline and will also be supplemented with acquisitions from other developers. The platform plans to make a number of purchases in the coming months.
‘The launch of this joint venture is a next step in the development of ION, as an investor-developer. We believe in the Belgian rental market and have the ambition of achieving significant growth. The partnership with two leading institutional investors will allow us to realise our ambitions more quickly. By combining each other’s expertise, we will be able to grow rapidly and maximise our focus on sustainability and innovation in this new market,’ said Davy Demuynck, CEO of ION.
Growing demand for rental housing
Approximately 72% of Belgians are currently homeowners. However, research shows that this number will decrease considerably over the next decade, meaning that tens of thousands of additional Belgians will rent a home instead of owning one. ‘Providing affordable and high-quality sustainable housing is one of our key objectives and preferred investment strategies throughout Europe. This investment will allow us to play into that strategy in a defensive market with very strong long-term fundamentals,’ commented Line Verroken, senior investment manager, CBRE Global Investment Partners.
IRP aims to become a reference among tenants by offering high quality and professionally managed homes. The platform’s sustainable projects will actively contribute to a more climate-friendly housing market. The joint venture is expected to provide the partners a stable long-term return, with the prospect of further growth in an attractive new market.
‘Affordable housing as an asset class offers an interesting opportunity to create value in both financial and social terms. The fundamentals for this investment are strong due to ongoing urbanisation and a growing housing shortage in urban areas. We are keen to expand our investments in this segment given the sustained demand and lower risk level and are excited to pursue this particular strategy together with ION and CBRE GIP,’ said Jasper Petit, senior portfolio manager European Investments, Bouwinvest.
“This investment will enable us to strengthen our presence in Belgium and in particular, the largest cities,’ added Robert Koot, director of European Investments at Bouwinvest
CBRE Capital Advisors acted as corporate finance advisor to ION and guided the transaction process.
