Bouwfonds Investment Management (IM) has acquired the property ‘De Admiraliteit’ of approx. 21.000 sq. m. in Rotterdam. The property is located close to the city centre in Kralingen West. The total investment volume is around EUR 52 million. It is the first time that all three pan European residential funds of Bouwfonds IM invest together in one location.

The property is an empty office building located at Admiraliteitskade 40, 50 and 60 in the Struisenburg quarter, near the attractive residential area of Kralingen. The property, built in 1989, consists of 3 linked towers, all of which have 12 floors. Bouwfonds IM has acquired tower A for its Individual mandate (EUR 14 million), tower B for its Bouwfonds European Residential Fund (EUR 16.8 million) and tower C for its European Student Housing Fund (EUR 22.1).

The property will be redeveloped into new young professional and student housing units and will be totally refurbished to the standard of a new building and will have energy labels A and B. All units are going to be furnished and will have their own bathroom and kitchen with built-in equipment. Tower A is going to consist of 35 studios and 102 apartments. Tower B will house 76 studios and 106 apartments and Tower C will house 263 studios and 5 apartments. Besides the new units,  500 storage units, 400 parking spaces and 700 spaces for bikes are going to be created. There will be two terraces for communal use and a sky gym and laundrette. City Pads is the developer of this project and delivery of the new student houses is planned for the second half of 2015.
Xavier Jongen, Fund Director of Bouwfonds European Residential Funds: “We are very pleased with this acquisition, because it is the first time that all three of our pan European residential funds invest together in one location. We are preparing similar investments as it enables us to increase our single-asset investment size whilst limiting object specific risks at fund level.  I am also happy that it is our second Dutch transformation project in the Netherlands.” Rotterdam is a very attractive market for investment in student housing. It is the second largest city in the Netherlands and has more than 22.000 students, and that number will only increase between 2014 and 2021. Within Rotterdam the building has an excellent location: the central station of Rotterdam is only 15 minutes away by bike, Erasmus University in Kralingen Oost only 10 minutes, and main shopping streets are within 15 minutes’. With this purchase we can address part of the mismatch of supply and demand in housing for starters and students in the city of Rotterdam’.

De Mik Huisvesting advised the funds in this transaction.