BNG Bank has lent EUR 138 million to landlord Stayinc. B.V. This is the largest financing for mid-range rentals in the housing association sector in 2019. With this loan, the subsidiary of Eindhoven housing association Wooninc. aims to almost double its portfolio from 680 homes to 1,200 between now and 2024. Stayinc. is thus responding to the significant shortage of mid-range rental properties in the Eindhoven urban area.
Stayinc. will use part of the financing to repay the loan to Wooninc. Stayinc. will use the remainder of the loan to purchase and build mid-range rental homes in the Eindhoven urban area.
Stayinc. is delighted with the financing, says René Clijsen, director of Stayinc. "Mid-range rental homes costing between 720 and 1,000 euros per month are scarce in the region. As a result, households with an income of just over 38,000 euros per year in particular are left out in the cold. They earn too little to buy, but too much for social housing. Private sector homes in the expensive segment are also often unaffordable for them."
Since 1 July 2017, housing associations have been obliged to separate their social housing and private sector rental properties. Many associations opted for an administrative separation, which limits the possibilities for building new rental properties in the mid-range segment. Under the leadership of director Angela Pijnenburg, the Eindhoven-based housing association Wooninc. opted to set up a separate private limited company for its housing portfolio in the mid-range rental segment.
Pijnenburg: ‘Thanks to the hybrid separation, we have much more leeway in the mid-priced segment, because Stayinc. as a private limited company is not restricted by the market test. This allows us to continue to make a valuable contribution to the availability of housing in this segment. And because Wooninc. is the 100% shareholder of Stayinc., the social segment also benefits from Stayinc.'s success.’
Stayinc. currently has a number of construction plans. Around 50 homes will be built on Montgomerylaan, near the Grijze Generaal. And in the Achtse Barrier in Eindhoven, there are plans for a residential building with a mix of social rental flats and flats for the private sector, including a number of mid-range rentals. This has a number of advantages, according to Clijsen: "By mixing social and private sector rental homes in one complex, we are creating a diverse neighbourhood and community. More mid-range rentals in a neighbourhood also promote the movement of tenants who are paying below-market rents, because people like to look for more spacious but affordable homes in their own neighbourhood." Now that the financing with BNG Bank has been finalised, the new construction plans can be further developed.
Many other housing associations in the Eindhoven region are divesting their mid-range rental properties because they want to focus on social housing. A major disadvantage of this is that these properties may disappear from the mid-range segment if they are purchased by investors. Clijsen: ‘Stayinc. believes it is important that these homes remain available to middle-income earners as much as possible. That is why we recently acquired three residential buildings from the “thuis” housing association: De Brugwachter and De Schuyt in Son en Breugel, and Brederode in Waalre.’
In addition to BNG Bank, three other parties were interested in providing financing to Stayinc. "We were not only looking for a financier, but also a strategic partner who could help us further expand our property portfolio. We chose BNG Bank because their offer best suited our needs. In addition, BNG Bank has extensive experience in the public sector, particularly with housing associations. Like us, they have the ambition to expand the mid-rent segment in the Netherlands.”
Stayinc. is a subsidiary of the Eindhoven-based housing association Wooninc. With the establishment of Stayinc., Wooninc. has transferred its non-DAEB properties to a separate private limited company. Stayinc. focuses on the rental segment between £720 and £1,000. Stayinc. thus focuses on the broad group of middle-income earners.