Hines Pan-European Core Fund Acquires Mixed-Use Residential Scheme In Amsterdam’s NDSM Regeneration Area

HECF makes first residential investment as it diversifies toward PRS and logistics

(AMSTERDAM) – Hines, the international real estate firm, has acquired Pontkade Phase 3, a mixed-use residential and office development within Amsterdam’s NDSM-West regeneration area, on behalf of the Hines Pan-European Core Fund (HECF).

Hines will forward fund the mixed-use development, which will consist of 208 apartments for rent, alongside 1,600 square meters of office space and 800 square meters of ground floor commercial space for retail use. Designed by international architecture firm Moke, Pontkade Phase 3 features an 18-story residential tower and a seven-story office building. The project is expected to complete by the end of 2022.

Amsterdam’s NDSM is a large area of regeneration around the former shipping docks in the North of the city. Several major developments have already been completed, including the head office of retailer HEMA and an enhanced marina, alongside new homes, restaurants and bars. The world’s largest street art museum will open in the next few months and, on completion in 2028, the NDSM area will provide around 5,000 homes.

HECF has acquired the site from BMB ontwikkeling, part of construction group VolkerWessels, and Reggeborgh Vastgoed, a private investment company. On behalf of VolkerWessels, BMB ontwikkeling is the lead developer in the NDSM regeneration area.

Since 2019, HECF has sought to increase exposure to residential and urban logistics assets in key European cities within its portfolio. The Pontkade Phase 3 acquisition represents the first PRS investment by HECF and further residential investments are expected to complete in the coming months.

Peter Epping, senior managing director and HECF fund manager at Hines, said, “This is an exciting new development in an emerging part of Amsterdam, with strong long-term prospects as the area continues to develop and grow. Our investment underlines our strategy of targeting high-quality PRS assets and build-to-rent projects, alongside traditional Core assets, within the HECF. Alongside the growth of our office and logistics investments, it is a key target to expand our residential invest program in other key European cities with good prospects for long-term rental growth.”

Andy Smith, managing director and country head for The Netherlands at Hines, said, “Amsterdam Noord and the NDSM area is a dynamic new place to live, with high-quality shops, bars and restaurants, and with significant further development in the pipeline. The Pontkade Phase 3 site benefits from strong transport connections, including easy access to Amsterdam’s central station, and will be highly attractive to Amsterdam’s growing rental population.”

About Hines

Hines is a privately owned global real estate investment firm founded in 1957 with a presence in 219 cities in 23 countries. Hines has approximately $124.3 billion of assets under management, including $63.8 billion for which Hines provides fiduciary investment management services, and $60.5 billion for which Hines provides third-party property-level services. The firm has 148 developments currently underway around the world. Historically, Hines has developed, redeveloped or acquired 1,362 properties, totalling over 449 million square feet. The firm’s current property and asset management portfolio includes 514 properties, representing over 222 million square feet. With extensive experience in investments across the risk spectrum and all property types, and a pioneering commitment to sustainability, Hines is one of the largest and most-respected real estate organizations in the world. Visit www.hines.com for more information.

About the Hines Pan-European Core Fund (HECF)

The Hines Pan-European Core Fund was set up in 2006 with the aim of providing investors with a resilient income profile derived from a diversified portfolio of high-quality assets located in inner-city locations across major European cities.

The Fund combines disciplined sustainable management policies with a risk-adjusted return profile and has been awarded the European leadership in the GRESB ranking for three years while delivering an average net total return of 8.2% between 2014 and 2018, with an income return of 3.5%. As of Q4 2019 the HECF portfolio was 97.5% occupied with an aggregate value in excess of €1.4bn. The portfolio of the Fund is currently composed of 21 assets invested in 15 city markets across eight different European countries. The Fund has continually improved asset level performance of buildings by working in close collaboration with the local Hines teams and property managers and engaging tenants in a variety of ways. An example of this has been the drive to optimize the energy consumption of the buildings, resulting in a 12% reduction in like-for-like consumption since 2016. The total return of 8.4% achieved in 2018 illustrates that sustainability improvements could also be combined with strong performance for Fund’s investors.