Invesco Real Estate acquires major residential development in Amsterdam city centre
Invesco's real estate investment business has acquired a major residential development in the city centre of Amsterdam in a forward funding deal set to complete in Q1 2024.
The acquisition is the latest to be made on behalf of Invesco’s European Living Fund. The development is sold by Maarsen Groep.
The state-of-the-art development, Caritas, in the central Amsterdam Nieuw-West district consists of 154 one- and two-bedroom apartments. The total space of c7,500 sq m includes c70 sq m of lettable commercial space. All apartments have been designed to cater the highly demanded mid rental market segment.
The asset will meet very high ESG and sustainability standards which is reflected in an energy label of A++. This is based on sustainable technical installations such as photovoltaics on the roof, LED lightning throughout the whole building and an underground bicycle park for more than 370 bikes.
Caritas is located in a highly central location just 400m from the famous Rembrandt Park. Amsterdam’s main train station, Amsterdam Centraal, is also reachable within 15 minutes by car, bike, and train. The district predominantly has young residents that demand affordable rental housing in the Dutch city.
The acquisition further increases Invesco’s exposure to the European residential sector. Including this latest transaction, the firm’s allocation is now 35 investments consisting of over 8,310 units spread across nine countries in Europe.
Invesco launched the Invesco Real Estate European Living Fund in August last year, targeting a 4 per cent p.a. gross income return and 5.5 per cent to 7.5 per cent gross total return. Recent transactions in 2021 include Bossey, Invesco’s first residential deal in France, and SeiMilano, one of the largest and most significant development residential projects in Europe, situated close to Milan’s CBD.
Fabian Manegold, Managing Director, Transactions at Invesco, says: “Caritas Amsterdam will offer modern residential living in the city centre of Amsterdam, a city that continues to thrive. At the same time, the city faces a huge housing shortage of approximately 355,000 units of missing housing stock despite the fact that the economy remains strong. The Caritas development should contribute to close the gap of this material housing shortage in the Netherlands.”
William Ertz, Senior Director, Fund Management at Invescom, says: “We are very pleased to be able to add another attractive investment with a distinct social component to our European Living Fund in a rental and investment market that is in particularly high demand.”
In this transaction Invesco was advised by CMS, Drees&Sommer, Ernst&Young, and Paris REM.