Benelux offices to be restructured by Patrizia and Revive, focusing on budget-friendly residential properties.
In a joint venture, real assets investment manager Patrizia and Revive Fund Management have committed an initial investment of €75 million to develop affordable and socially sustainable housing in the Benelux region. The aim is to reposition old office buildings into residential buildings and individual apartments to be sold at an affordable price to people on lower to middle incomes.
The venture's key goals focus on preserving affordability, ensuring housing remains economically accessible, and sustainability through the adaptive reuse of existing real estate stock. This approach contributes to social impact by addressing housing shortages in the region. While explicit Key Performance Indicators (KPIs) have not been detailed in public sources, typical measures would include the number of affordable units delivered, environmental sustainability certifications obtained, resident satisfaction levels, and social integration outcomes.
The social impact of this initiative includes increasing access to affordable housing, reducing environmental footprint by recycling buildings rather than new construction, and fostering inclusive communities by revitalizing underused urban properties.
The fund plans to make a total of five investments and support up to 7,500 people into affordable and social housing. The first building redevelopment in the initiative is underway in Brussels, with a further three to four projects planned for the future.
This is the third joint venture launched through Patrizia's €300m Sustainable Communities fund, with previous allocations made in the UK and Ireland. The joint venture 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". Residents should not have to spend more than 35% of their income on repaying their mortgages. The investment requires a focus on all three of these goals: creating affordable and social housing, developing green buildings, and advancing inclusion and connectivity.
In summary, the Patrizia-Revive JV is investing €75m to convert obsolete Benelux offices into affordable, sustainable housing, with objectives centered on affordability preservation, social inclusion, and environmental sustainability as key pillars of their development strategy.
- The investment of €75 million by Patrizia and Revive Fund Management in the Benelux region is aimed at advancing energy transition in residential buildings, as the venture plans to focus on the redevelopment of depleted and obsolete office buildings.
- The home-and-garden lifestyle can be embraced in the sustainable-living spaces created by the joint venture, as the initiative aims to deliver up to 7,500 units of affordable and socially sustainable housing that will positively impact residents' well-being.
- The joint venture's approach to development finance not only addresses the lack of affordable housing for first-time buyers and key workers but also contributes to the effort of reducing greenhouse gas emissions related to energy transition by recycling existing buildings instead of constructing new ones.
