Dutch pension fund ABP has taken over Dutch mortgages worth €2.7bn from NIBC’s mortgage platform, containing mortgages that have been granted in the past five years for homes of around 10,000 Dutch households in the Netherlands.

The acquisition, which APG invested on behalf of ABP, brought ABP's Dutch mortgage portfolio to over €7.3bn.

The mortgages, branded under the 'NIBC Hypotheek' label, will continue to be managed by NIBC who will remain the primary point of contact for mortgage clients.

ABP also said that around 25 per cent of the acquired portfolio was used to finance homes with an energy label A.

ABP said these types of investments were interesting as mortgages are long-term and therefore yield an attractive return. 

Commenting on the investment, ABP chairman of the board, Harmen van Wijnen, said: “ABP wants to invest in the Dutch mortgage market, and with an investment of this size we are taking a big step forward in one go.

“That is good news because it yields an attractive return with a low risk. This investment contributes to a purchasing power and stable pension for our participants.”

He added that by investing in mortgages ABP can also help Dutch home buyers finance their homes.

In the future, van Wijnen said he hoped ABP could work with mortgage providers who want to work on sustainability, such as NIBC, to “make sustainability an important part of the Dutch mortgage market”.

Adding to this, APG head of alternative credits, Menno van den Elsaker, said: “This acquisition is one of the largest Dutch mortgage transactions in recent years and provides our client with an attractive return combined with a low-risk profile.

"We look forward to working with NIBC, which will serve as an important addition to our existing strategic partnerships with mortgage lenders.”

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