Impact investments are investments made with the intention to generate positive, measurable social or environmental impact alongside a financial return (The Global Impact Investing Netwerk, 2023).
The Fund acknowledges the urgency of affordable housing and its ability to help address it. The Fund is not an impact investment vehicle. Nonetheless, a substantial part of its investments have a societal impact. In 2019, the Fund therefore developed an impact strategy focused on affordable housing. Through its impact strategy, the Fund aims to deliver societal impact by adding affordable dwellings to the Dutch residential market.
Intentionality
The Dutch rental housing market is characterised by a structural shortage and an increasing pressure on affordability. The Fund aims to contribute to the addition of affordable dwellings to the Dutch residential market.
Financial returns
According to the Fund target.
Measurability
# of affordable dwellings delivered to the Fund in the respective year.
Affordability defined
The Fund’s definition of affordability aligns with socially responsible housing cost standards (as set by Nibud), while also considering the differences in local characteristics and accounting for structural non-rental housing expenses. To calculate the maximum rent deemed affordable for assets falling within the impact strategy, the Fund applies a formula to determine the affordable base rent for newly constructed assets:
Affordable base rent = (35% x local median disposable household income) – local structural non-rental housing expenses.
This approach results in a tailored upper limit of the affordable base rent per newly added asset and reflects the Fund’s believe that there is no universal definition of affordability, since affordability varies depending on location and structural costs. The Fund’s approach to affordability is, therefore, project-specific and informed by the local context.
Objective
The Fund aims to add at least 325 newly constructed affordable dwellings to its portfolio during the 2026-2028 period.