Property fund Kortrijk
The City of Kortrijk wants more affordable rental housing and also fewer vacant and neglected properties in the city centre. The solution? A rolling property fund set up by PMV and the Kortrijk Urban Development Company (SOK).
The joint venture buys vacant and derelict houses, renovates them in a future-oriented and sustainable way, and then offers them on the rental market as affordable housing.
Cardboard house
For example, the ‘cardboard house’ in Pluim Street will be transformed. A Lined Architects produced a design for two compact town houses with a net living area of 87 and 93 m². One house has three bedrooms; the other two. Both have a terrace. The house has been languishing in a state of shell construction for some time. A contractor will be appointed. The city bought the property in 2008. To answer the demand for quality, modern & affordable housing in the city centre, the city bought some 10 obsolete houses in Zwevegemsestraat, Pluimstraat and Slachthuisstraat. Young starters could buy these houses at a favourable price on the condition that they would demolish the property and replace it with a new building. That’s also how the property in Pluimstraat fared. But the buyers ran into problems during the new construction works, so the property was never finished. Consequently, the city decided in 2016 to buy it back and offer it again within the plot project. However, new buyers were never found again. Two years ago, the pawn fund took over the property.
Solutions
“Through the property fund, we can finally tackle the dismal corner, defining the view from Pluimstraat and Slachthuisstraat, and rent out two modern, comfortable town houses at an affordable price,” says Wout Maddens, alderman for building and housing. PMV is also pleased with the evolution. “Together with public and private partners, PMV is looking for concrete solutions for social real estate. We are proud to be able to increase the supply of affordable and high-quality rental housing together with the city of Kortrijk,” says senior investment manager Bertrand Van Regemortel.
PMV’s role
PMV helps the city realise its (rental) housing policy: not only does it provide the necessary financial resources (in the form of venture capital) but it also brings expertise in real estate investments and helps structure the company.
Role of the partners
SOK provides 60% of the capital and assumes project management for the acquisitions and renovations. After completion, the sustainably renovated properties will be leased to the Kortrijk Market Rental Office, which will then rent them out (and take care of tenant follow-up). The market rental office works in addition to a social rental office by offering affordable and high-quality rental housing to singles and families who fall just outside the social rental office.
The project in numbers
PMV and the SOK have provided 3.5 million euros (in a 40/60 ratio) for the purchase and sustainable renovation of about 20 houses.
A capital participation from PMV: also for your project?
Find out how a capital participation from PMV might be the solution for financing your heritage project: request the presentation.
