Dutch financial services provider Achmea has invested €50m in the Achmea Dutch Residential Impact Fund (ADRIF), to buy older, poorly insulated rental homes and to make them more sustainable.

The ADRIF is managed by its subsidiary Achmea Real Estate and has a target volume of €1bn by 2030.

Achema said that in the Netherlands, there are almost one million rental homes with energy label D or worse and noted that these homes must be made more sustainable in the coming years to meet the Paris climate targets.

The properties are expected to mainly be housing complexes that will be taken over from business parties.

These can be other large investors or corporations that want to sell part of their portfolio or private investors with a reasonably large portfolio. However, the fund said it will not buy homes from individual owners.

Achema encouraged other institutional investors, such as pension funds, to participate in this fund.

Achmea executive board member, Daphne de Kluis, said: "Together, we are facing an enormous task when it comes to making existing homes in the Netherlands more sustainable.

"We need to work on this energetically and this requires considerable investments. With our investment, we are taking the first step." 

It said it would make the homes “Paris proof”, which means the roof, façade, and floor will be insulated, HR++ glass will be installed everywhere in the house and gas-fired installations will be replaced by an electric heat pump or a connection to the heat network.

It said improved measures would lead to “significantly” lower CO2 emissions per home.

As a result of the improvements, Achmea said the tenants of the houses will have more comfort and a “significantly” lower energy bill.

Despite a rent increase to cover sustainability costs, the total housing costs remain the same or will decrease slightly, if other circumstances such as energy consumption or family size do not change.

"In addition to the benefits for the climate, this solution also contributes to keeping housing affordable,” de Kluis added.

Commenting on the ADRIF, Achmea Real Estate co-chairman, Boris van der Gijp, said: "Making existing real estate more sustainable is very much needed to meet the Paris climate targets.

“With this fund, we enable institutional investors to contribute to this at an appropriate financial return. For many Dutch people, living will then become more climate-friendly, affordable, and comfortable."

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