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Luxembourg's Housing Fund (Fonds du logement) and the public Pension Fund (Fonds de compensation) have rented out the new "Kräizerbierg" residential building in Grevenmacher.

In this pilot project, the two institutional players joined forces to create 23 affordable housing units. The Pension Fund acts as an investor, whilst the Housing Fund acts as a promoter and subsequently as a social landlord for the management of housing and rental income.

With housing access being one of the biggest challenges in Luxembourg, the Ministry of Housing is implementing a targeted policy to considerably increase the supply of public, affordable and sustainable housing. To achieve this, the ministry is counting on the support of the municipalities and public promoters, namely the Housing Fund and the national association for affordable housing, the SNHBM. 

Private social promoters and institutional investors are also encouraged to invest in the creation of affordable rental housing. In some cases, the investor cannot seek the maximum return on his / her investment and the profit must be moderate in the interest of creating affordable housing. It is from this perspective that the partnership between the Housing Fund and the Pension Fund was born. 

When the Kräizerbierg was put on the market, Luxembourg's Minister of Housing, Henri Kox, noted: “The players in this first joint project have the same objective: to significantly increase the supply of affordable rental housing for current generations. In this important societal project, all players have their place. Public and private developers as well as institutional investors such as the pension fund”.

The Minister of Social Security, Romain Schneider, added: “This cooperation between the Pension Fund and the Housing Fund makes it possible to create synergies to develop real estate projects allowing the construction of additional affordable rental housing. This is a first Pension Fund project, bearing in mind that other projects located in Luxembourg City and in the North of the country are currently in the study phase".

With a view to promoting social diversity, the 23 dwellings are mainly intended for households with intermediate incomes, thus targeting housing access for households with an income that is too high to have access to public rental housing but not enough income to find decent housing on the private market. 

The accommodation will be administered and rented by the Housing Fund for a rent varying between €9 and €15 / m2, depending on the financial situation of the occupying household, with priority assigned to households registered with the fund's services. All the housing units have already been rented out and the first occupants will arrive this month.

The design of the project was entrusted to the architecture firm Valentiny hvp architects. The residence meets the criteria of the AAA energy class and includes 23 two to three-bedroom apartments with a usable living area ranging from around 64 to 93 m2, including accommodation adapted for people with reduced mobility.

All the apartments have been fitted out for rental (equipped kitchens, painted and lighting installed). On the street side, the south-facing facade is embellished with rolling balconies and bay windows running the entire length of the residence, while on the garden side, new plants will complement existing plants. The basement, which is accessible by an access ramp from the roundabout at the corner of the residence, will house 32 parking spots, as well as cellars and technical rooms.