M&G Real Estate, part of M&G’s £71 bn private and alternative assets division – has forward funded a €60 mln residential development in The Hague Binckhorst on behalf of the M&G European Property Fund, reflecting a strategy to increase residential exposure in Continental Europe.
Comprising 296 new homes, the majority of the property will provide student accommodation. A non-profit student housing specialist is to take a 15-year lease on 197 units on completion of the development in Q1 2025. The remainder of the homes will be targeted for occupation by young professionals at mid-market and affordable rents. Based on the national average net income and the number of regulated units, three-quarters of the homes will be considered affordable.
The asset is strategically located south of The Hague in Binckhorst, a former business park currently being transformed into a new urban mixed use area, which will supply 80,000 m2 of commercial and office space, sports facilities and green spaces.
Commenting on the rationale for the acquisition, Laurien van Wieringen, director of investment and asset management for M&G Real Estate in the Netherlands, said: 'With its high living standards, excellent connectivity and abundant local job market, The Hague’s population has grown by 5.5% over the last 5 years and has a younger-than-average age of 39 years. Given the continued increase of workers and students alike, coupled with the lack of high quality rental accommodation, we see excellent prospects for rental growth in this area which is set to become one of The Hague’s most exciting districts to live. We fully expect this quality asset to surpass expectations.'
David Jackson, manager of the M&G European Property Fund, added: 'The housing market across Europe’s major cities remains in a state of imbalance and under constant supply pressure. The Netherlands is no exception. This is the Fund’s second residential acquisition in this strategically important market for M&G and follows over €640 million of residential deals in France, Italy, Finland and Germany, which together with this latest acquisition we expect to provide strong diversification and long term rental growth for our investors.'