Redevco is entering the residential market by establishing a new residential real estate fund of €500m. Redevco, managing €7.4bn of total value invested primarily in retail, initially targets potential projects in the Netherlands and Germany, and Spain and the UK as the second-tier markets. The fund’s first deal has already been sealed with the acquisition of building land in the greater Amsterdam area. Together with the AM area development company of real estate development company AM, Redevco plans to build approximately 300 rental units by 2022.
Redevco CEO, Andrew Vaughan, said: “The core fundamentals of the residential investment market are extremely strong with 70 million people projected to move to Europe’s leading cities over the next 30 years. We also believe that the strongest, future-proof investment locations are those where people can enjoy the right mix of functions of living, working, shopping and leisure activities. Entering the adjacent segment of residential in addition to that of retail makes perfect sense for us.”
Redevco aims to build up a pan-European residential portfolio with approximately 2,500 units, comprising high quality, sustainable product aimed at the mid-rental segment. In addition, the company plans to build around 1,000 high quality and sustainable homes within existing ownership over the next five years, targeting the mid-market rental segment. Redevco’s residential fund aims to acquire new developments as well as existing assets.
