Rabobank plans to invest 5b euros in Dutch rental homes
Amsterdam
RABOBANK Group said it wants to help fix the severe shortage in rental homes for middle-income households in the Netherlands.
The second-largest Dutch lender will set up a five billion euro (S$7.59 billion) fund this year that aims to add 15,000 rental homes to the local market over the next decade, it said in a statement on Saturday. With rents ranging from 650 euros to 1,250 euros a month, Rabobank aims to fill the "huge gap" between social housing and expensive rental homes.
Large cities in the Netherlands are grappling with steep increases in house prices and a lack of availability. Policy makers have laid out ambitious targets for building more homes, but property developers face multiple obstacles, including a shortage of workers, rising construction costs and regulation.
The housing issue has been high on the agenda for years and is becoming "more urgent" every day, said Wiebe Draijer, chief executive officer at Rabobank. "The Netherlands has around three million so-called middle-income households that do not have access to affordable housing if they were to look for a home now."
Rabobank's fund - BPD Woningfonds - will be set up this year and will cooperate with property developer Bouwfonds Property Development, a subsidiary fully owned by the Utrecht-based bank. The first 1,000 homes will be built next year. BLOOMBERG
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Property
Hong Kong property deals hit three-year high in April
More homes planned in Media Circle to support housing demand
Qatari Sheikh sells London mansion to fellow royal for £39 million
Toronto home sales fall for third month in April; prices rise
Far East Shopping Centre owners in private talks after close of S$928 million en bloc tender
US mortgage rates up for fifth week at 7.22%