ABP and Greystar invest €420m in new rental homes in the Netherlands

Greystar is  a global leader in the investment, development, and management of high-quality real estate across the living sector, to launch a new development-led strategy known as the Dutch Essential Housing Venture with a first tranche commitment of EUR 420m.

Through the Dutch Essential Housing Venture, ABP aims to deliver high quality homes for mid-income earners, key workers and pensioners impacted by the lack of rental options in the Netherlands. The first tranche of the partnership aims to build and operate a portfolio of circa 1,500 new homes in Randstad area and other cities across the Netherlands, primarily via strategic developments that meet a strict set of investment criteria.

The Dutch Essential Housing Venture has already been set in motion with the acquisition of a development opportunity in Leiden. The project, developed by Ten Brinke Lubro Ontwikkeling BV, will operate under a new brand and comprise 780
high-quality one-, two- and three-bedroom apartments with ample additional amenity space. Construction will start in 2024 with the first phase, delivery scheduled for 2027 by Ten Brinke Bouw BV.  Capital Value advised Ten Brinke on the sale.

Leiden is characterized by a growing population and a shortage of housing, increasing the need for affordable rental accommodation. It is home to Leiden University and the rapidly expanding Bio Science Campus, making it an attractive work-live location. In addition, Leiden is within a 10-minute train ride of The Hague Central Station and 40 minutes from Amsterdam Central Station.

The addition of 780 affordable apartments to the housing stock of Leiden is an excellent example of the societal importance of impact investing.

Arjan Peerboom, Director of New Construction at Capital Value: “To reduce the housing shortage, substantial capital is needed from both domestic and international sources to facilitate the production of new rental properties. This first transaction by ABP is immediately one of the largest new construction transactions ever, a good start for the realisation of many more (affordable) homes.”