ABP and Greystar invest in 560 mid-income homes in The Hague
Press Release
November 25, 2024
- Waldorp Four in The Hague’s Central Innovation District is the second development that ABP and Greystar have invested in as part of the Dutch Essential Housing Venture
- 560 mid-rent homes at Waldorp Four in Central Innovation District in The Hague will address housing shortage
The Hague, 25 November 2024 – ABP, the pension fund for people working in government and education, and Greystar, a global leader in the investment, development, and management of high-quality residential buildings, have signed an agreement with developer Sustay to purchase 560 newly constructed homes for middle-income renters. This investment is the second major step for the the Dutch Essential Housing Venture, a partnership announced in June between ABP and Greystar.
The entire Waldorp Four development, located in the Central Innovation District (CID) in The Hague, comprises 1,171 new rental homes and plays a vital role in the development of the CID, the economic heart of The Hague, which spans the area between and around the train stations Den Haag Centraal, Hollands Spoor, and Laan van NOI.
The mid-rent apartments range from studios to two- and three-bedroom flats averaging around 50m2 and nearly 100m2 respectively and have a capped rent of EUR 1,200.00 per month (price level 2024). On the ground floor, a combined lounge/coworking space of about 300m2 will be realised, on the roof of the building there will be a roof garden of about 500m2 and a sky lounge on the top floor with various outdoor spaces of 150m2. The properties will meet strict sustainability requirements and will be certified with the BREEAM-NL Excellent In-Use certificate and an A+++ energy label. Completion is scheduled for the second quarter of 2028.
Lisette Nijs, Area Development Director for The Hague, said: “With Waldorp Four in the CID, we are taking major steps to address the housing shortage in The Hague in a sustainable and inclusive way. This cooperation shows that we can realise housing for diverse target groups despite the challenging market conditions. With three NS railway stations and many amenities nearby, this project contributes to affordable housing in a desirable neighbourhood for future residents.”
The initial allocation of the Dutch Essential Housing Venture by ABP and Greystar amounts to €420 million for the development of approximately 1,500 homes in the Randstad and other major cities. The goal is to rent at least two-thirds of the homes in the portfolio under construction in the regulated and mid-rent segments (up to EUR 1,200.00 per month, price level 2024). In this partnership, ABP is represented by pension administrator and investor APG.
Harmen van Wijnen, Chairman of ABP: “The demand for affordable rental housing remains as strong as ever. Investing in rental homes is therefore a stable source of returns for us as a pension fund. ABP has set a goal to invest €10 billion with impact in the Netherlands by 2030, with €5 billion dedicated to affordable rental housing. This allows us to build a stable and sustainable pension for our participants. At the same time, we can make a difference for people seeking housing—including our own members—by ensuring that affordable homes for police officers, teachers, and others are built quickly. In recent years, we have frequently demonstrated our ability to help initiate residential projects across the Netherlands. We are pleased to add Waldorp Four to that list, as this project aligns perfectly with our goal of creating impactful, affordable housing for those who need it most.”
Mark Kuijpers, Senior Managing Director Central Europe at Greystar: “It’s fantastic news that, so soon after the launch of the Dutch Essential Housing Venture, we are already able to make a second major investment. Through this project, we are reinvesting Dutch institutional capital in a key employment hub. The government’s goal is to build 100,000 homes per year, and investor capital is crucial to achieving that. This project is a substantial contribution to addressing the housing shortage, as it enables large-scale development in a highly accessible location with excellent connectivity to existing infrastructure.”
About the Dutch Essential Housing Venture
The Dutch Essential Housing Venture is a new development strategy by ABP and Greystar, with ABP represented in this partnership by pension administrator and investor APG. Through the Dutch Essential Housing Venture, ABP aims to provide affordable housing for middle-income households, key workers such as teachers and police officers, and retirees. Projects under the Dutch Essential Housing Venture will meet specific sustainability criteria, with all homes achieving at least an A++ energy label and a BREEAM-NL Excellent certification. At least two-thirds of the homes will be offered at regulated rental prices (up to EUR 1,200.00 per month, price level 2024). Additionally, these homes will be located in areas with good public transport connections. Residents can expect high-quality, sustainable housing with nearby amenities and on-site management focused on convenience and high resident satisfaction.
The partnership launched with an initial allocation of €420 million for the construction of approximately 1,500 homes in the Netherlands, kicking off this summer with the acquisition of a new development of 780 high-quality apartments in Leiden. Ten Brinke Bouw BV has begun construction, with completion expected in 2027.
About Greystar
Greystar is a leading, fully integrated global real estate company offering expertise in property management, investment management, development, and construction services in institutional-quality rental housing, logistics, and life sciences sectors. Headquartered in Charleston, South Carolina, Greystar manages and operates more than $320 billion of real estate in 250 markets globally with offices throughout North America, Europe, South America, and the Asia-Pacific region. Greystar is the largest operator of apartments in the United States, manages more than 997,000 units/beds globally, and has a robust institutional investment management platform comprised of more than $78 billion of assets under management, including over $36 billion of development assets. Greystar was founded by Bob Faith in 1993 to become a provider of world-class service in the rental residential real estate business. To learn more, visit www.greystar.com
About ABP
Stichting Pensioenfonds ABP (ABP) is the industry-wide pension fund for employers and employees of government and educational institutions in the Netherlands. ABP has 3.1 million members and 533 billion euros (as of September 30, 2024) in assets available. www.abp.nl
About APG
As the largest pension services provider in the Netherlands APG looks after the pensions of 4.6 million participants. APG provides executive consultancy, asset management, pension administration, pension communication and employer services. We work for pension funds and employers in the sectors of education, government, construction, cleaning, housing associations, sheltered employment organizations, medical specialists, and architects. APG manages approximately €569 billion (December 2023) in pension assets. With approximately 4,000 employees we work from Heerlen, Amsterdam, Brussels, New York, Hong Kong and Singapore. www.apg.nl