Invesco Real Estate has acquired a major residential development in the city centre of Amsterdam in a forward funding deal set to complete in Q1 2024.
The acquisition is the latest to be made on behalf of Invesco’s European Living Fund. The development was sold by Maarsen Groep for an undisclosed amount.
The development, known as Caritas, is located in the central Amsterdam Nieuw-West district and consists of 154 one- and two-bedroom apartments. The total space of 7,500 m2 includes 70 m2 of lettable commercial space.
The acquisition further increases Invesco’s exposure to the European residential sector. Including this latest transaction, the firm’s allocation is now 35 investments consisting of over 8,310 units spread across nine countries in Europe.
Invesco launched the Invesco Real Estate European Living Fund in August last year, targeting a gross income return of 4% per year and a gross total return of 5.5% to 7.5%. Recent transactions in 2021 include Bossey, Invesco’s first residential deal in France, and SeiMilano, one of the largest and most significant development residential projects in Europe, situated close to Milan’s CBD.
Fabian Manegold, managing director, transactions at Invesco said: 'Caritas Amsterdam will offer modern residential living in the city centre of Amsterdam, a city that continues to thrive. At the same time, the city faces a huge housing shortage of approximately 355,000 units of missing housing stock despite the fact that the economy remains strong. The Caritas development should contribute to close the gap of this material housing shortage in the Netherlands.'
William Ertz, senior director, fund management at Invesco commented: 'We are very pleased to be able to add another attractive investment with a distinct social component to our European Living Fund in a rental and investment market that is in particularly high demand.'
Invesco was advised by CMS, Drees&Sommer, Ernst&Young, and Paris REM.
