Bouwinvest Real Estate Investors B.V. is specialised in managing real estate portfolios for institutional investors. Bouwinvest strives to achieve sustainable returns on behalf of its pension fund clients. We manage €16.9bn (HY 2022) in assets within five Dutch property sector funds and three international real estate investment mandates in Europe, North America and Asia-Pacific.
With over 70 years of experience and a heritage rooted in pension funds and the construction industry, we understand the needs of long-term institutional investors and the dynamics of the domestic and international real estate investment markets. Bouwinvest has an experienced team of 200 investment professionals.
The most important drivers of the real estate office market are economic growth, working from home and the office-oriented employment market, which require astute timing to secure the best opportunities for high- quality assets in prime locations. Bouwinvest expects the long-term impact of increased working from home on offices at prime locations will be minimal. Bouwinvest therefore targets modern assets with strong sustainability credentials, flexibility of use and good IT infrastructure, as these are most likely to match rapidly evolving market demand.
There is a structural shortage of homes in the Netherlands. By current estimates, the Netherlands has a housing shortage of 3.9% (some 300,000 homes). Demand for housing will remain strong because of an expected household development of 12.7% until 2040.
Due to rising prices on the owner occupier market, affordability and accessibility of the owner occupier market has been under pressure, which has resulted in increasing demand for rental accommodation. Together these factors provide a solid foundation for the residential investment market. By investing in affordable (mid-market) rentals, investors are able to meet social needs as well as their own financial requirements.
Local grocery-anchored retail has shown strong resilience during the COVID crisis and is expected to continue to do well. The best inner-city locations are going through a challenging period, due to COVID and the increase in e-commerce, but will retain their position as dominant leisure shopping destinations. Retailers with both a strong online and physical presence have been best placed to weather the challenges that e-commerce pose. These two retail asset classes function differently and therefore also provide portfolio diversification opportunities.
Bouwinvest sees healthcare real estate as a growth market in both financial and societal terms. The continued ageing of the population in the Netherlands and, at the same time, the government’s withdrawal from the care sector has increased the demand for assisted living facilities. The market faces shortages, in both quantity and quality terms. Care-related real estate offers pension funds an attractive risk-adjusted return as well as an opportunity for portfolio diversification. Moreover, healthcare real estate is very much aligned with impact investing: these investments make a direct contribution to high-quality care for the elderly and disabled.
Hotels have suffered during the pandemic as operators were forced to shut down. As an asset class, however, hotels have a proven track record as a niche segment with very attractive returns. The hotel world operates largely with long-term lease contracts. Most hotel operators are very attached to their buildings, which translates into healthy and stable returns in the long term. While economic downturns have a direct effect on hotel bookings, the overall trend in hotel tourism points towards a long-term growth trajectory.
Investment principles & strategy
Bouwinvest’s Dutch funds have diversification and risk-profile guidelines at both asset and location levels. This results in a focus on core regions with positive economic and demographic outlooks. These funds are characterised by low to moderate levels of risk, due to a focus on core investment strategies and the absence of leverage. Key points in Bouwinvest’s investment strategies include:
- Solid risk-return profiles: Providing investors with stable and attractive rates of return through skilled acquisition, disposal and asset management of our Dutch properties, creating significant added value within the portfolio.
- Positive impact: To ensure our long-term success, we must invest in what society needs. This is how we create a stable return for our shareholders.
- Our investments therefore contribute to sustainable, liveable and inclusive metropolitan areas while enhancing pension benefits.
- Growth strategy: Expanding the portfolio through turnkey acquisitions from third parties and new investment properties developed by Bouwinvest Development (residential fund only). Our funds are open-ended.
- Active portfolio management: Our carefully managed acquisition and disposal policies aim to create value by improving occupancy rates and optimising rental levels.
- Our investment process is research-driven and both ‘top-down’ (macroeconomic) and ‘bottom-up’ (local market) in focus. This blended approach provides Bouwinvest with a clear roadmap in selecting assets that meet our funds’ hurdle rates of risk and return.
Strategic corporate development
Bouwinvest is a specialised real estate investment manager established in 1952 as part of bpfBOUW, the Dutch construction workers pension fund. In 2003 Bouwinvest was placed at arm’s length by the pension fund and in January 2010, bpfBOUW’s Dutch real estate investments were transferred to what became known as Bouwinvest Real Estate Investors.
Bouwinvest focuses on creating real value for life. Our approach to real estate investment management contributes towards sustainable, liveable and accessible urban environments, and improves pension benefits. In doing so, we are creating both societal and financial returns. Bouwinvest operates five sector funds: the company’s Dutch Residential, Retail and Office Funds are open to Dutch and international institutional investors, while its Dutch Hotel and Healthcare Funds are managed on behalf of bpfBOUW. Bouwinvest also provides its anchor investor with strategic asset allocation advice and investments in listed and unlisted real estate funds in Europe, North America and the Asia-Pacific region.
Bouwinvest invests globally in metropolitan areas in 10 countries and in six sectors. This strategy enables the company to derive the maximum benefit from trends and developments, such as population growth, urbanisation and globalisation.
The funds’ investment returns at asset level are closely monitored and compared with market benchmarks such as the MSCI/IPD Dutch sector indices.We use GRESB scores to determine our sustainability performance.
Bouwinvest is fully compliant with current Dutch and European regulations governing non-listed investment fund managers and anticipates and responds to industry guidelines from INREV. Bouwinvest is licensed within the meaning of Article 2:65 of the Financial Markets Supervision Act as per 17 February 2014, in accordance with the requirements of the EU Directive (2011/61/EU) on Alternative Investment Fund Managers. Bouwinvest has carefully compiled the contents of this presentation in accordance with its current knowledge. Damage and warranty claims arising from missing or incorrect data are excluded. Bouwinvest bears no responsibility or liability for damage of any kind, also for indirect or consequential damages resulting from this presentation.