APG, on behalf of its pension fund client ABP, and Rockfield Real Estate (Rockfield) will develop affordable and sustainable housing for students and young professionals in the Netherlands. With an initial capital commitment of €350 million, the partners aim to deliver more than 2,000 homes in Dutch student cities over the coming years.
In almost all Dutch student cities, there is a persistent shortage of affordable housing for students and young professionals. This shortage not only limits access to education and employment, but also puts pressure on mobility within the housing market. Students and young professionals who are unable to find suitable housing are often forced to remain at home or occupy homes intended for other target groups. At the same time, it is essential that there is sufficient mobility within these groups themselves, from student to young professional, and from young professional to family housing. By developing housing solutions for each phase, movement is created throughout the entire housing chain.
Expanding housing supply and improving mobility
The investments will be made through the newly established Student & Starter Social Living Venture (SSLV). Through this venture, APG and Rockfield aim to contribute to expanding housing supply and improving mobility by investing in large-scale residential complexes, typically consisting of 250 to 500 homes, in Dutch cities with the most severe housing shortages.
The partnership focuses on newly built housing for students and starters in the Netherlands, with the vast majority of homes falling within the lower and middle rental segments. The term “social” in the venture’s name reflects a living concept that goes beyond four walls. Shared spaces and communal facilities stimulate social interaction and provide residents with an inspiring living environment.
Suitable for the long term
All projects will be developed in line with high sustainability standards, aiming at a minimum of BREEAM NL In-Use (sustainability certification) Excellent and CRREM (decarbonization pathway framework) alignment. These standards are embedded in investment decision-making and asset management practices. This ensures that the new homes are not only affordable, but also energy-efficient, climate-resilient, and suitable for the long term. Each project is assessed to determine whether the assets are aligned with the goals of the Paris Climate Agreement and contribute to a future-proof housing market.
Robert-Jan Foortse, who is responsible for the European property investments at APG comments: “This partnership is a strong addition to the portfolio we are building under ABP’s mandate to invest in newly built affordable housing. After initially focusing on the mid-rental segment, we have recently expanded into senior housing, and are now taking the next step by targeting students and young professionals. This segment remains structurally undersupplied in today’s market, and we see both a clear societal need and an opportunity to invest at scale.”