U.S. investor purchases 500 rented social-housing apartments in Amsterdam

Unique housing formula
Change= is offering a unique, new residential formula for young people in employment aged between 18 and 30. This building in Amsterdam is the first in a series of twenty to be built in the four largest cities in the Netherlands. Ralph Mamadeus, the initiator and CEO of Change=, explains: “Change= takes the formula of ‘Work, Live, Learn and Life’ from the enormous need for affordable rental properties for young workers aged 18 to 30. In total there are 180,000 young people in Amsterdam, 40,000 of whom have a low or medium-skilled level of education. Research from Projectbureau Amsterdam, part of the municipality of Amsterdam, shows that 13,000 young people in this group are actively searching every day for suitable, affordable accommodation and that on average they need more than 10 years to find a permanent home. Our all-inclusive housing formula is a response to the increasing housing shortage in this population group, and to the need to address the clear social and civil damage that this situation is inflicting on our surroundings and on society in general. Our aim is to help the perspective of young workers in both Amsterdam and other big cities in the Netherlands.”

The Netherlands presents good investment opportunities
Heitman, a global property investment company based in Chicago, and its Dutch partner Orange Capital Partners, have been jointly investing in the Netherlands’ housing market since 2014. Their portfolio is mostly in Amsterdam and consists of more than 1,000 properties in the private and social rental sectors. Victor van Bommel, the founder of Orange Capital Partners adds: “Together with our partner Heitman and the developer Change=, we have succeeded in reaching out to a target group that has little chance of finding affordable rented property in Amsterdam. As investors, we are delighted to make a positive contribution towards solving one of society’s problems.” Rob Reiskin, Managing Director and Co-Head of Heitman Europe, says about the transaction: “We are delighted to further expand our position on the Amsterdam market through this acquisition. We believe in the Change= formula to develop homes for starters on the residential market.”

Marijn Snijders, Director of Capital Value and initiator of this transaction: “Research shows that the number of households in the Netherlands will continue to grow and housing shortages will continue to increase over the coming years. Therefore, the Netherlands is a country with myriad options for investors from home and abroad. A new, pioneering residential formula like Change= has made it possible to deliver properties in a sector facing enormous shortages. Rents have been kept at an affordable level with an excellent Risk-Return-Ratio for the investor. It is great to see there are such vast opportunities for innovative and forward-looking investors on this market.”

Delivery
Amsterdam Municipality laid the foundations for delivering this important social project through a pro-active approach to the spatial planning process in local administration. In addition, ABN AMRO decided to finance the project based on the bank’s commitment to society and the strong embedding of this project in society. Law firm DLA Piper Advocaten en Notarissen supported Change= in this ?45 million transaction.

Change= all-inclusive housing formula
Change= is creating perspective for low and medium-skilled young workers based on its ‘Work, Live, Learn and Life’ formula. One of the ways you can see this formula in Change= is in the affordability of its accommodation. The new studios will be approximately 30 m2 and all have their own kitchen with a fridge and hot plate, laminate floor and a fully-fitted bathroom with toilet. Basic rent costs around ?530 per month, which is over ?100 less than the price that may be charged within the price cap. The formula also offers amenities such as a branch of temporary employment agency Start People. Start People is one of the Change= business partners that embodies the meaning of its ‘Work, Live, Learn and Life’ formula. Miele, another business partners, provides a full-service launderette and supports to make  the formula cheaper and easier for residents. The building will be a ‘smart building’, featuring high-quality internet, Wi-Fi and e-community services as standard. Other facilities are currently being installed in the building. For example, it will also be possible to get help completing tax forms. A mobility service for bikes and green cars is included and other innovative facilities such as an e-doctor will be on offer, too. As Change= is signing contracts with these and other service providers, residents in a Change= complex will enjoy a ?200 minimum net increase per month in their purchasing power.  For more information on this transaction, please do not hesitate to contact Ing M.A. (Marijn) Snijders RT MRICS.