NN Group, CBRE IM launch Dutch sustainable residential real estate venture

NN Group, CBRE IM launch Dutch sustainable residential real estate venture
Image: Courtesy of NN Group

NN Group (NN), an international financial services company active in 19 countries, has announced the launch of its Positive Impact Programmatic Venture (PIPV), a collaboration between NN and CBRE Investment Management with an initial equity commitment of €500 million.

The venture will invest in Dutch sustainable and affordable residential real estate with the aim to improve energy efficiency and reduce carbon emissions.

NN Group said PIPV contributes to its target to increase investments in climate solutions by at least €6 billion by 2030.

The programme aims to make an impact on a broad range of Environmental, Social and Governmental (ESG) themes. The ambition is to achieve alignment with the environmental objectives of the EU Taxonomy for all investment properties, while also focusing on providing mid-priced rental for households who do not qualify for social housing.

PIPV targets a reduction of 80% of landlord-controlled greenhouse gas emissions and procuring 100% renewable electricity by 2030, and net-zero operational emissions by 2035. Assets must achieve a high standard of energy performance, being at least 10% more efficient than the Nearly Zero Energy Buildings requirements as defined by the Dutch ‘Bijna Energieneutrale Gebouwen’ (BENG).

Jelle van der Giessen, Chief Investment Officer of NN Group: ”Contributing to the well-being of people and planet is a key element of our strategy. NN has set clear targets towards net-zero emissions and we have pledged to more than double our investments in renewable infrastructure investments, green bonds and energy efficient real estate in the coming years. The PIPV project is clearly contributing to that target.”

Promotion of circularity, water conservation, biodiversity protection and pollution prevention will all be non-negotiable elements incorporated in the asset selection and construction design of the targeted PIPV properties.

Going forward, the programme aims to include life cycle assessment of materials employed in the construction phase as part of the development design, with the ambition to move toward innovative and traditional biomaterials for limiting embodied carbon and further reduce waste and pollution.

Simultaneously, the programme will add to the supply of affordable rental homes in high demand areas. A positive impact on communities and the well-being of tenants also plays a critical role in the objectives of the venture, with tenant satisfaction regularly assessed throughout their tenure. With the programme’s aim to reduce energy consumption, this also helps tenants as they will benefit from lower energy costs. 

The programme has made its first acquisition with the forward funding agreement to acquire Lighthouse, a residential asset located in a popular location in Eindhoven, the Netherlands.