ABP & CBRE IM launch Dutch affordable housing mandate
Dutch Pension Fund ABP and CBRE Investment Management have announced a partnership to launch a new residential development-led mandate with a focus on affordability and sustainability. The partnership has an initial commitment of €350 million, including a co-investment from CBRE IM.
The Cartesius residential complex in Utrecht, the first acquisition by the ABP/CBRE IM mandate
“The mandate will invest in modern residential properties, delivering much-needed affordable homes with strong environmental credentials, at scale”, said Bas Tiemstra, Head of Separate Accounts EMEA, CBRE IM. “Historically, the Dutch residential market has seen low vacancy rates and a downward supply trend. The undersupply of high-quality rental homes, combined with expected population growth, means there will be strong demand for the affordable homes the mandate will invest in long into the future.”
The mandate’s strategy is to target newly built residential assets in the Netherlands and the goal is to create sustainable communities that contribute to solving the Dutch affordable housing shortage. The portfolio will comprise affordable homes in the mid-rent segment as defined in the Affordable Rent Act aimed at middle-income households, with all assets targeting BREEAM In-Use Excellent as a minimum.
With an initial capital tranche of €350 million, ABP and CBRE IM aim to grow the portfolio to €1 billion within five years and deliver over 3,000 units. In the coming months, the partnership plans to invest capital towards 700 units.
“By investing in affordable rental housing, we are doing what ABP stands for as a long-term investor: building a good pension together in a liveable world”, said Harmen van Wijnen, Chairman, ABP Executive Board. “Dutch residential real estate, especially in the affordable and mid-market segments, offers long-term stability and inflation-linked income. Until 2030, we want to invest €10 billion with impact in the Netherlands, of which €5 billion will be in housing.”
The mandate has already started allocating capital through the forward funding acquisition of a multifamily building in Utrecht, part of the large mixed-use inner city area development Cartesius residential project.
Cartesius is situated in a well-established area adjacent to Utrecht’s historic city centre, and the development will have a significant social impact by delivering much needed affordable housing. Cartesius Utrecht is inspired by the scientific theory of Blue Zones and is the first Heart of Health area development in the region of Utrecht.
The first acquisition in Cartesius is expected to complete in 2028, and the project is targeting BREEAM In-Use Excellent certification and will be entirely gas-free, connecting to a thermal energy storage system to ensure operational energy efficiency. This approach also leads to lower energy and housing costs for tenants, making it a win-win for both the environment and the community. Multiple rooftop and inner gardens will enhance biodiversity and provide a tranquil outdoor space for residents and visitors of the area.
The broader Cartesius project will be developed by a consortium of MRP Development and BallastNedam Development in collaboration with the municipality of Utrecht and the Dutch Railways.
