26 September 2019

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Bouwinvest Real Estate Investors, the Dutch institutional real estate manager, has invested $85 million in affordable residential rental properties across the U.S. The investments were made under its North American core strategy mandate from parent investor bpfBOUW, the Dutch construction workers pension fund.

The investments are focused on housing markets where there are imbalances of supply and demand and the need for affordable housing is high, such as New York, San Francisco and Seattle. Bouwinvest is investing alongside other like-minded institutional investors in the portfolio, which is managed by U.S. affordable rental property specialist Avanath Capital Management. The rental homes are intended for households with an annual income of between 50% and 80% of the average income in each target city.

Gijs Plantinga, Director Northern American Investments at Bouwinvest, said: “Just like in the Netherlands, there is a great requirement for affordable rental properties in the U.S. This demand is mainly being driven by accelerating urbanization trends, the increasing unaffordability of home buying and the shortfall in the availability of homes for the mid-segment rental market. These investments fulfill a strong social need and also meet institutional investors’ demand for long-term stable rental income returns.”