Savills Investment Management (Savills IM), the international real estate investment manager, has acquired a new-build, multifamily development in Amsterdam’s Ijburg sub-market in an off-market transaction on behalf of its European Living Fund.
Completed in April 2023, the six-storey Juf Nienke asset consists of 61 residential units with a total NLA of 4,389 sq m, with 30 units leased in the mid-rental segment and 31 in the free rental segment. The ground floor of 817 sq m comprises of commercial space currently let to a leading kindergarten and a private gym as well as 25 parking places.
A modular, timber-framed construction, Juf Nienke has been built with materials which are either recycled or renewable, significantly reducing its embodied carbon profile. Other sustainable attributes include solar panels, EV chargers and efficient district thermal heating. Overall, the building has very high sustainability and ESG standards.
Located in Amsterdam Ijburg residential neighbourhood at the newly developed Centre Island, the building benefits from close access to local amenities and excellent public transport connections, with direct access to Amsterdam’s city centre and main central station.
The Savills IM European Living Fund is an open-end vehicle launched in mid-2023 with a strategy to invest in modern and affordable living assets with strong sustainability credentials in affluent European cities with supportive economic and demographic trends.
Patrick Au Yeung, Fund Director, Living, Savills Investment Management, comments: "The third investment for our European Living Fund following transactions in Sweden and Spain last year, this latest acquisition fits perfectly with its strategic remit to invest in high-quality, sustainable assets in key European cities with supportive fundamentals. Amsterdam is one of the strongest residential markets in Europe, with low vacancy risk, and we’re delighted to have secured this newly completed sustainable asset in an off-market transaction – a clear indicator that our European platform continues to go from strength to strength."
"We strongly believe this current vintage will see investors taking full advantage of attractive market timing opportunities. The fundamentals for the rental living segment are robust, and the supply/demand imbalances are acute and likely to persist.”
Edgar Hertog, Co-Head of Savills Investment Management in the Netherlands, says: ”This acquisition represents another important step in growing our residential AuM in the Netherlands and Europe. The strong affordability and, particularly, the social element of renting out to mid-income tenants of this asset creates a solid, long-term leasing profile and an attractive risk-adjusted return profile for our investors.
We look forward to acquiring more assets of similar quality and will continue to focus on assets with a strong ESG story via existing credentials or achieved following active asset management.”
Bas Wilberts, Head of Residential & Hotel Investment at Savills in the Netherlands, adds: "The market conditions for residential developments remain fragile, driven by factors such as the Affordable Rent Act, high construction costs, and high interest rates. Therefore, it is especially gratifying to acquire a newly completed building with the initial rental already secured. This unique transaction is a significant achievement, and we are immensely proud to have secured it on behalf of Savills IM."
Savills Investment Management was advised by Savills, CBRE, Greenberg Traurig, PWC and SGS.