Vesteda signs turnkey agreement 139 apartments in mid-rental segment Groningen

Vesteda has signed a turnkey agreement for the acquisition of a total of 139 houses in the Kolenpark project in Groningen. The Kolenpark project is a development of m2o5 Real Estate, was designed by architectural firm TEAM 4 Architecten, and is being realised by Bouwgroep Dijkstra Draisma. Delivery of the project is expected in the first quarter of 2019.

The project consists of four apartment buildings with a total of 139 apartments in the mid-rental segment with useable floor surface varying from 47m2 to 85m2. The commercial spaces in the buildings will be available for offices and (healthcare) services.

Kolenpark will be part of Europapark, a new neighbourhood on the south-eastern side of Groningen. The Europapark neighbourhood will be divided into four sub-areas and provides opportunities for living, working, sports and leisure. The location offers easy access by car, train and bike. The name Kolenpark (Coal Park) is a reference to the historical use of the location, which was formerly used as the coal storage location for the old power plant. Kolenpark will be the second large development connected to the WarmteStad collective heat and cold storage (WKO) system. This system provides heating for buildings without the use of natural gas, which makes the heating and air-conditioning for the buildings highly sustainable. The location is adjacent to the very striking (orange) Hete Kolen building.

Pieter Knauff, director of Acquisitions at Vesteda says: “The market in Groningen is developing positively. Groningen is benefiting from the urbanisation trend and the limited number of attractive cities in the north of the Netherlands. Groningen is also facing increasing demand pressure, as a lot of liberalised sector rental properties have been sold off as individual units and that has left little supply. The houses being developed in Kolenpark are an excellent fit with the growing demand for liberalised sector rental homes in Groningen and the project is a good fit with Vesteda’s strategy and portfolio.”

About Vesteda

Vesteda is an entrepreneurial investor with a clear focus on the Dutch residential real estate market. Vesteda invests funds for institutional investors such as pension funds and insurers. Vesteda has total capital of €4.5 billion invested in real estate. The company’s rental portfolio stands at a total of around 23,000 residential units. Vesteda’s key investment regions are the Randstad region and the Brabant metropolitan area. In the first half of 2017, Vesteda generated a total result of €325 million, with approximately 200 employees.