Bouwinvest buys mid-range rental complex in Rotterdam

Bouwinvest Real Estate Investors has acquired 90 apartments in Diepeveen, a new district in Rotterdam, through a partnership between Dudok Real Estate B.V. and developer Dura Vermeer Bouw Zuid West B.V. on behalf of its Dutch Residential Fund. More than 80% of the units fall under the mid-range rental segment. The Diepeveen Rotterdam development will be built by Dura Vermeer Construction Zuid West B.V.

Housing in Rotterdam is in very short supply, particularly in the middle-income segment. Spread over five buildings, the Diepeveen development will add 187 owner-occupied and rental properties to the Rotterdam housing market. Bouwinvest’s investment in the Diepeveen property is concentrated in the mid-range and private rental sector with apartments ranging in size between 60 and 82 m².

Michiel de Bruine, Director Dutch Residential Investments at Bouwinvest, said: “Bouwinvest is targeting the mid-range segment for at least 60% of its residential investments, and this development is an excellent fit with that strategy. Not only because we are providing accommodation in the city for middle-income earners, but also because this asset will generate a stable return for the Dutch pension funds who are our shareholders.”

New construction solutions

Rotterdam is witnessing a noticeable increase in housing construction activity; around 2,000 owner-occupied and rental properties are being completed in the vicinity of the Diepeveen project alone. Michiel de Bruine added: “The housing shortage in the Netherlands is so great that nearly one million new homes will be needed before 2035. Dutch institutional investors, including pension funds, are more than willing to help alleviate the problem. The Diepeveen development is an excellent example of how we can create suitable, sustainable, and affordable accommodation with pension fund capital.”

Rob Langerak, on behalf of the developer Diepeveen Rotterdam B.V., added: “Diepeveen will become a distinctive neighbourhood at the tail end of Dakpark (Roof Park), nestled in the middle of M4H – a new district that is emerging near the Merwe port area. The new complex will feature a mix of compact studios and spacious urban apartments, measuring approximately 54 m² to 160 m² respectively. This blend of mid-range and upmarket rental apartments, alongside owner-occupied properties, will help to create a diverse residential quarter."

Construction of the Diepeveen residential development is scheduled to commence at the beginning of next year and is due to be completed by the end of 2023 or early 2024. Capital FIT advised on the sales process on behalf of Diepeveen Rotterdam B.V.