Pan-European real estate investment manager Redevco is broadening its traditional focus on retail with the creation of a new residential real estate fund targeting €500 mln.
The fund’s first deal has already been sealed with the acquisition of a development site in Amstelveen near Amsterdam. Together with Dutch residential specialist AM Real Estate Development Redevco plans to build approximately 300 rental units by 2022. In addition to the Netherlands, Redevco is also targeting projects in Germany, and Spain and the UK as second-tier markets.
Commenting on the move, Redevco CEO Andrew Vaughan, said it made 'perfect sense' to enter the residential market which he described as an 'adjacent segment to retail'. 'The core fundamentals of the residential investment market are extremely strong with 70 million people projected to move to Europe’s leading cities over the next 30 years. We also believe that the strongest, future-proof investment locations are those where people can enjoy the right mix of functions of living, working, shopping and leisure activities.'
Redevco aims to build up a pan-European residential portfolio with approximately 2,500 units, comprising high-quality, sustainable product aimed at the mid-rental segment. In addition, the company plans to build around 1,000 high-quality and sustainable homes within existing ownership over the next five years, targeting the mid-market rental segment. Redevco’s residential fund aims to acquire new developments as well as existing assets.
To further this goal, Redevco has put a dedicated residential team in place that will be co-led by Manolito van Ardenne, managing director fund management, and newly hired Hans Touw in the role of managing director residential. Both are member of Redevco’s investment committee. Patrick Brenninkmeijer has been appointed as portfolio director residential to source quality product and ensure delivery in the key markets in close collaboration with the local teams.
Redevco currently manages €7.4 bn of primarily retail real estate, predominantly on behalf of the Cofra Group, a privately-owned holding of companies active in various business sectors including fashion retailer C&A which is owned by the Brenninkmeijer family. Third-party mandates account for roughly 37% - or €2.7 bn of the portfolio.
