Civil service pension fund ABP and real estate investor CBRE are to put €350 million into developing rental homes for seniors.

In total, the investment will drive the development of around 1,000 homes, more than half of which will be classed as “affordable”, ABP said.

“The Netherlands is aging rapidly and the supply of housing that is appropriate for seniors is lagging behind,” said ABP director Harmen van Wijnen. ABP is one of the biggest pension funds in the world.

The government wants housing corporations and the public sector to develop some 290,000 age-appropriate homes.

Encouraging older people to move from large family homes into more suitable properties is seen as one of the key steps to solving part of the housing crisis.

Last year, ABP and CBRE announced plans to invest almost €1 billion in housing, and this investment comes on top of that. In total, the investment should lead to the development of 3,500 units.