APG is once again investing in Dutch residential real estate on behalf of its pension fund client ABP. Following projects in The Hague and Leiden, 500 million euro has now been allocated to invest in new rental homes in Utrecht, in collaboration with project developer Greystar.
The partnership with Greystar - a U.S.-based real estate company active globally in the investment, development, and management of high-quality residential buildings - kicks off in Utrecht with an initial investment of 200 million euro.
This amount will fund the construction of 779 rental homes in the new Merwede Block 1 development in Utrecht. Two-thirds of these homes will have a regulated rent of up to 1,300 euro making them accessible to groups such as first-time renters and single households. With this investment, ABP and Greystar will jointly manage over 2,000 homes.
Impactful projects
“With this second 500 million euro investment, we are taking a significant step toward. Our ambition is to invest 10 billion euro in impactful projects in the Netherlands by 2030 - projects that also deliver solid long-term returns”, says Harmen van Wijnen, Chair of ABP’s Board. Dutch rental housing - especially in the affordable and mid-range segments - offers stable returns that track inflation, he says. “The housing shortage directly affects our participants, such as police officers, teachers, and other public sector professionals. Thanks to this partnership, we can now realize over 2,000 new, sustainable rental homes.”
Merwede Block 1 is a new development in Utrecht’s Merwedekanaalzone, consisting of 779 rental homes spread across two buildings. The complex will offer a variety of housing types: 300 student units, 305 mid-range rental homes, 89 private sector rentals, and 85 short-stay units (rented for 1 to 6 months). The apartments range from one to three rooms, with floor areas from 20 square meters for student units to 110 square meters for private sector rentals. Construction is set to begin in December 2025, with completion expected in 2028.
Dutch Essential Housing Venture
In June last year, ABP, APG, and Greystar launched the Dutch Essential Housing Venture. Projects under this strategy aim to develop and build new, high-quality, and affordable homes in the Netherlands. These homes are intended for first-time renters, middle-income earners, essential workers such as teachers and police officers, and retirees.
The partnership aims to rent at least two-thirds of the portfolio in the regulated and mid-range segments. The homes will meet specific sustainability criteria, including a minimum energy label of A++ and a BREEAM-NL Excellent certification. Additionally, they will be built in locations with strong public transport connections.