Rabobank invests a billion euros in fund for home construction

Rabobank will invest an extra 1 billion euros in the housing fund of their subsidiary BDP to build more homes. The bank and BDP, an area developer, want to use this fund to ensure the construction of 15,000 mid-range rental properties. This is to help combat the housing shortage in the Netherlands.

The bank gave the fund a billion euros in 2019. There are now more than 5,000 homes in the portfolio. With this new allotment, the fund can increase its growth in the next few years.

“This new investment enables us to add sustainable new construction homes and offer these to first-time buyers, families, and seniors who do not qualify for social or expensive rental homes or who cannot achieve a purchased home,” said fund director Tak Lam.

BDP claims to be the largest area developer in the Netherlands. Since its founding in 1946, when it was called Bouwspaarkas Drentsche Gemeenten, BPD has constructed over 384,000 homes.

In addition to the Netherlands, the company also operates in Germany under the name BDP Immobilienentwicklung.