Funds acquire stake in Amsterdam houses of ill repute
In this longrunning era of ultra-low interest rates, investors can be persuaded to look around for some rather risky, or risqué, investments with higher returns.
Managers of two pension funds – one grouping Dutch farmers, the other employees of Holland’s Rabobank Group – have plucked up the courage to pay €60m to acquire a 35-percent stake in 133 buildings in Amsterdam’s red light district.
The stake is more specifically in public-private company 1012 Inc (named after the buildings’ postcode) set up by the municipality and housing corporation Stadgenoot. It plans to use the financial injection to help transform the area into an attractive residential neighbourhood and vibrant hub for creative firms and retailers