Offices in the Benelux region to be transformed by Patrizia and Revive for budget-friendly residential properties
In a significant move towards addressing the need for affordable housing and promoting sustainable urban development, Patrizia and Revive Fund Management have formed a €75 million joint venture. This initiative aims to reposition unused office space into sustainable, affordable residential developments in the Benelux region.
The three main impact goals of this fund are creating affordable and social housing, developing green buildings, and advancing inclusion and connectivity. The joint venture targets a return on investment (IRR) of 12%.
The focus on affordable housing solutions is part of a broader trend in European real estate, where investors and developers are repurposing commercial properties to meet housing demands in an environmentally and socially conscious manner.
The joint venture plans to make a total of five investments, supporting up to 7,500 people into affordable and social housing. Two more joint ventures are in the pipeline, including one in Spain and a fifth and final investment focusing on affordable housing in London.
The funds raised for this initiative are intended for the energy transition and EU development finance. The Patrizia fund's earlier ventures include the development of social housing in and around Dublin and a UK partnership focused on developing affordable single-family homes.
The first building redevelopment in the initiative is underway in Brussels, with a further three to four projects planned for the future. The investment will focus on the redevelopment of depleted and obsolete office buildings, initially in Belgium, to address the lack of affordable housing for first-time buyers and key workers.
To convert office space into homes, the buildings often have to be "completely stripped" and redeveloped to meet an EPC A rating and a zero operational carbon footprint. Every development undertaken by the fund and its partners requires the creation of a community space, such as a day care centre or library, for use by its residents.
Elsewhere, Renalfa, a renewable energy firm, has raised €315M from an EBRD-led investor group. The grant is for the energy transition and the blue economy sectors. Additionally, CorPower Ocean has secured a €40m EU grant for a wave energy farm.
The Patrizia fund's Resonance housing initiative has welcomed its first tenants as the fund has closed. The success of this venture underscores the growing importance of affordable and sustainable housing solutions in Europe.
- The energy transition and EU development finance are key focus areas for the funds raised by the Patrizia fund's Resonance housing initiative.
- The investments made by the joint venture will not only contribute to the advanced energy transition but also support the development of affordable and social housing in different regions.
- The lifestyle changes associated with sustainable-living, such as home-and-garden upgrades, are emphasized as residents are provided with community spaces like day care centers and libraries in the redeveloped residential buildings.
