Mid-segment Rental Housing

The housing shortage in the Netherlands in 2017 was estimated at more than 150,000 homes (source: CBS). Although it is expected that the supply will increase in the coming decades, it will certainly lag behind the growth in demand over the coming years. The housing shortage is expected to peak in 2021, after which it gradually decreases. Supply and demand for housing in the Netherlands is not expected to be balanced until 2050 (source: Primos). There is a substantial mismatch between supply and demand, particularly within the mid-rent housing segment. This segment consists of dwellings with a monthly rent between € 710 and € 1,000. The size of this market segment is only around 4.6% of the total number of dwellings, but the demand for this type of housing has increased significantly in recent years as a result of:

Stricter income requirements, which deny people with incomes above approx. € 37,000 access to the social rental sector, as a result of which more people than previously are appointed to the mid-rent housing segment.


Higher prices in the owner-occupied sector combined with more stringent mortgage requirements, which have made owner-occupied homes a lot less accessible in the Randstad area, but also beyond.


Greater flexibility in the employment relationship, leading to more and more people, especially young people, not wanting to settle down to one place and/or owner-occupied home.


Growing number of seniors opt for rent.


Because of these developments, mid-segment rental properties in the Netherlands offer an attractive risk-return profile for real estate investors.

Fund structure

Participation in the Fund offers investors an attractive risk-adjusted return. The stable financial return is partly due to inflation-adjusted cash flows and the expected increase in demand for mid-priced rental properties. Moreover, there is a low correlation with other asset classes.

All Fund documentation such as the Investment Memorandum, Terms and Conditions and Quarterly Reports are available for Participants in a secure online data room.

The Fund is a fund for joint account, organized and incorporated under Dutch law. The Fund aims for a minimum investment volume of approximately € 150 million. With the target debt set at of 65%, total equity will amount to approximately € 50 million. The Fund is open to potential new Participants. The Fund is only accessible to Professional Investors and the minimum size of a participation is in principle € 5 million.

The total life of the Fund is expected to be fourteen years, divided into a two-year investment period (with the option to extend one year) and a 12-year exploitation period (with twice the option to extend one year).

Fund structure

Please contact us if you want more information about the Fund or to request the Fund documentation..

Key-facts

Brink Groep

Fund Initiator of Woningfonds MDH I is Brink Groep. Brink Groep consists of three companies with around 225 professionals. Since 1972 Brink Groep has been synonymous with grip on quality, process and end result in construction, housing and real estate. Brink Groep is at the heart of a group of companies, each with its own specialisation in management, consulting and IT. A part of Brink Management/Advise is engaged in financial engineering and real estate and focuses on, among other things, the housing market.

Sustainability

The Fund only invests in newly constructed homes. These homes will legally have to meet the strict energy performance requirements. The energy label has two positive effects. On the one hand, the portfolio is considered to have a premium quality compared to older portfolios with on average considerably lower energy labels. On the other hand, the higher energy labels will lead to relatively lower energy bills for tenants, which will further increase the relative attractiveness of the homes in the Fund’s portfolio. In addition, the Fund will annually participate in the GRESB assessment that measures the ESG performance of the Fund and strives for a ‘Green Star’ score. In addition, Hartelt has signed the PRI (Principles for Responsible Investment)