The giant Dutch civil service union ABP is to invest €5 billion in building new housing in the Netherlands by 2030 as part of a €10 billion impact investment package.

The first new homes – a 780 apartment complex in Leiden – will be built in partnership with US developer Greystar Real Estate. In total, ABP and Greystar plan to build 1,500 housing units across the country as part of their Essential Housing project, with a budget of €420 million.

The partners aim to ensure two-thirds of the Leiden apartments are categorised as social or mid-market rentals, which means a rent of up to €1,200. The regulated apartments will have an A+ energy label and will be between 50 and 65 square metres in size.

ABP chairman Harmen van Wijnen told the Telegraaf that the fund’s priority remains the return on investment. “All investments have to meet that,” he said. “Then we look at the impact at a societal level.”

Developers have said the government’s plans to include most of the country’s rental housing in the current rent control system will make it uneconomic to invest in affordable housing.

Senators will vote on that draft legislation on Tuesday evening.