Bouwinvest Real Estate Investors B.V. specialises in managing real estate portfolios for institutional investors. We invest for the long term and manage €12.9bn (HY 2020) of assets in all the leading property segments. Together with our partners, we are committed to creating sustainable and liveable urban environments that generate stable income for our pension fund and insurance clients. We call our emphasis on societal and financial returns Real value for life. For more information, go to www.bouwinvest.com.
Expertise as foundation for growth
With 70 years of experience and a heritage rooted in pension funds and the construction industry, we understand the needs of longterm institutional investors and the dynamics of the domestic and international real estate investment markets. Bouwinvest has an experienced team of 180 investment professionals.
With our long successful track record of managing real estate investments in the Netherlands, we have been able to transfer this winning model to markets across the globe with similarly successful results. What we learn abroad can also be applied at home. For more information please visit www.bouwinvest.com.
OFFICE: The most important drivers of the real estate office market are economic growth and the employment market, which require astute timing to secure the best opportunities for high-quality assets in prime locations. Bouwinvest targets assets with solid sustainability credentials, flexibility of use and good IT infrastructure, as these are most likely to match rapidly evolving market demand.
RESIDENTIAL: The Dutch retail investment market is hierarchical, topped by inner city locations, followed by urban district, and then neighbourhood shopping centres. The inner cities are attractive for their core investment characteris- tics, while more local shopping centres provide a stable income flow, which is less dependent on the economic cycle due to their convenience function. The different consumer groups for these two retail asset classes therefore also pro- vide portfolio diversification opportunities.
HEALTHCARE: We see healthcare real estate as a growth market. 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 has both quantitative and qualitative shortages. Care-related real estate provides pension funds an attractive risk-adjusted return, and also offers an opportunity for portfolio diversification. Moreover, healthcare real estate is very much in line with impact investing: these investments make a direct contribution to high-quality care for the elderly and disabled.
HOTELS: Hotels are an asset class with a proven track record as a niche market with very interesting returns. The hotel world operates largely on long- term lease contracts. Most hotel operators are very attached to their buildings and this offers investors healthy and stable returns in the long term. In parallel to history, we foresee a growth in hotel tourism for the long future. We see a healthy balance in national and international tourism which leads to a diverse base of room occupancy.
Investment principles & strategy
The Dutch funds have diversification and risk profile guidelines at both set 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 the absence of leverage and core investment strategies. Key points in Bouwinvest’s investment strategies include:
Solid risk-return profiles: Provide investors with stable and attractive rates of return through skilled acquisition, disposition and asset management of our Dutch properties that create significant added value within the portfolio.
Creating impact: Our investments contribute to sustainable, livable and inclusive metropolitan areas while enhancing pension benefits.
Growth strategy: Expand the portfolio through turnkey acquisitions from third parties as well as new investment properties developed by Bouwinvest Development (residential fund only). Our funds have indefinite terms.
Active portfolio management: We have carefully managed acquisition and disposition policies that aim to create value through improving occupancy rates and optimising rental levels.
Our investment process is research-driven and both ‘top-down’ (macroeco- nomic) and ‘bottom-up’ (local market) in focus. This blended approach pro-vides 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 Investment Management.
Bouwinvest today operates five sector funds: Residential, Retail and Office are open to Dutch and international institutional investors while Hotel and Healthcare 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 Bouwinvest to derive the maximum benefit from trends and developments, such as population growth, urbanisation and globalisation. What is more, this international approach ensures that Bouwinvest can benefit from various economic cycles in the fastest-growing real estate markets.
The funds’ investment returns at the asset level are closely monitored and compared with market benchmarks such as the MSCI/IPD Dutch sector indices. We use GRESB scores to value our sustainability.
Bouwinvest is fully compliant with current Dutch and European regulations governing non-listed investment fund managers. Furthermore, Bouwinvest anticipates and responds to industry guidelines from INREV. Alternative Investment Fund Managers Directive (AIFMD). Bouwinvest has obtained a licence 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.