Two Dutch pension funds are doing their bit to help regenerate Amsterdam's infamous red-light district, investing a total of e60 million ($66.3 million) in an impact investment fund focused on the project.
Dutch agricultural workers pension fund Bedrijfspensioenfonds voor de Landbouw, Groningen, and the Rabobank Pension Fund, Utrecht, have taken a combined 35% stake in public-private impact investment fund 1012 Inc., which is named after the area's postal code. They were advised by institutional real estate manager Syntrus Achmea Real Estate & Finance.
The investment fund was set up in collaboration with Amsterdam's municipality and social housing firm Stadgenoot. The aim is to transform the area, known for its prostitution and drug shops, into a residential neighborhood and a hub for creative businesses and retailers.
The 1012 fund has an annual investment return target of paying a 4% dividend.
A spokesman for Rabobank said the e23.7 billion pension fund invested e18.75 million from its real estate portfolio in the 1012 fund. Executives at e14.6 billion BPL could not be reached for comment by press time.