Dutch pension funds ABP, bpfBOUW and real estate investor Bouwinvest have established a partnership for the development of affordable rental and care homes in the Netherlands.
ABP has committed €250 million and bpfBOUW another €150 million to the partnership.
The Dutch Social Impact Real Estate Partnership aims to add and preserve affordable (care-related) homes in the social and low-middle rental segment in the Netherlands.
The partnership’s focus will be on housing for groups of people who are currently finding it difficult to find a home.
The Dutch (healthcare) housing market is currently way out of balance, as large groups of people cannot find appropriate and affordable housing. In particular, there is a huge shortage of rental housing in the social and low-middle segment, with rental prices between € 650 and € 960. ABP and bpfBOUW aim to use this partnership to respond to this issue by providing housing for lower and middle-income earners. In addition, the partnership is actively looking for areas in urban environments that currently lack social amenities.
To meet its social objectives, the partnership is focused on homes and care-related homes (a minimum of 80%), but also on other social real estate, such as schools or community centres (a maximum of 20%). Of course, these will all be in energy-efficient, climate-resilient and sustainable buildings.
Bouwinvest manages the partnership on behalf of its investors. Maya Savelkoul, Director Dutch Impact Investments at Bouwinvest, says: “We are seeing some major social issues in society, including the affordability of homes and the lack of amenities in neighbourhoods. The knife cuts both ways for impact investors. After all, an increasing number of pension fund participants want the funds they invest to not only generate good returns, but also to make a positive contribution to society and the environment. In addition, the participants and pensioners themselves can also benefit from affordable homes and senior homes, along with social amenities in their neighbourhood.”
Harmen van Wijnen, ABP Board Chairman: “As ABP, our aim is provide good pensions in a liveable world. To that end, we look for attractive long-term investments. And it is even better if these investments can also help solve social problems. The Netherlands has a housing shortage and our participants feel that too. The Impact Partnership enables us to do something about this problem by investing in affordable and sustainable rental or care-related homes. So, thanks to this this investment, the premiums we receive pay off twice for our participants.”
Eline Lundgren, bpfBOUW Board Chairman: “By joining the Impact Partnership, we as bpfBOUW are demonstrating our commitment to realising affordable housing and improving people’s well-being. With this partnership, we are investing € 150 million to help solve the housing shortage and strengthen local communities.”
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