AMSTERDAM: Greystar Real Estate Partners LLC has formed a joint venture with a pension fund for Dutch government workers and teachers to build rental homes in the Netherlands.

The Dutch Essential Housing Venture includes an initial US$448mil commitment to build and operate about 1,500 homes in and around the Netherlands’ four largest cities, according to a statement yesterday.

It has already acquired a site in Leiden where about 780 homes will be built by Greystar for its venture with Stichting Pensioenfonds ABP.

Private equity firms have poured into residential property across Europe as cities struggle to deliver new housing to keep up with demand.

Real estate investors have been shifting their allocations away from traditional mainstays including offices and malls in favour of the steady returns offered by rental homes in the face of the mismatch between supply and demand.

“The Essential Housing Venture will invest Dutch institutional capital back into major employment hubs in the Netherlands to solve a real issue in the domestic housing market,” said Mark Kuijpers, senior managing director of Central Europe at Greystar.

 - Bloomberg