Investing in perpetual value
a.s.r. real estate has been investing in real estate on behalf of institutional investors and managing property portfolios for over 130 years. Throughout our history, we have always devoted attention to the right balance between risk, returns and sustainability in the long term. Or as we like to put it: our investments have perpetual value. We are part of a.s.r., one of the largest listed insurers in the Netherlands.
Our platform consists of non-listed sector funds in the Netherlands, with which we invest in retail and residential properties, offices, real estate at science parks and agricultural land. We also manage separate accounts, such as wind farms and solar panel farms, and estates for institutional clients.
With our years of experience, we know that in essence asset management is all about people. People who rely on us for the enjoyment of their shopping, living and working environments. People who count on financial security via their pension funds and insurance company. And of course, our own people.
This is why we not only invest in advanced systems and tools, but also in recruiting and retaining the most experienced and talented professionals. We are convinced that investing in quality provides the best guarantee of returns on investment and value creation in the long term. Through responsible investments in high-quality real assets and infrastructure, we as a team make our promise of ‘investing in perpetual value’ a reality.
Sector forecasts
SCIENCE PARKS:
Limited stock additions and continued low vacancy rates could result in additional upward rental pressure for modern assets with R&D facilities. Laboratory and life science assets seem more resilient to hybrid working compared to traditional offices due to – often – on-site presence for R&D work. However, venture capital may become more challenging to obtain. The long-term growth trend of knowledge-based industries is expected to continue as Dutch tech companies are globally competitive although protectionism could stifle innovation.
OFFICE:
Economic and market developments are driving polarisation in the office transaction market. The search for a new price balance between buyers and sellers, along with the availability of high-quality office spaces, will impact the market this and next year. Economic uncertainties and hybrid working may limit demand for office space, particularly of poor quality, as businesses reconsider their real estate strategies. However, sustainability and ESG requirements are fueling demand for high-quality, energy-efficient offices at locations with excellent public transport accessibility.
RESIDENTIAL:
Short-term uncertainties surrounding the proposed rent control regulations persist due to the Dutch government’s resignation in July. Together with rising interest rates this will have an impact on the short-term appetite in the residential investment market. Apart from the market sentiment for the coming two years, the fundamentals of the residential market remain strong. Mid-priced rental properties, in particular, hardly experience any vacancies. As a result, (market) rental growth will likely persist in the coming years, even with the impending market regulations.
RETAIL:
Elevated interest rates are anticipated to lower inflation in 2024, boosting consumer confidence in durable goods purchases amid low unemployment levels. Prime retail locations will benefit from redevelopment of redundant retail and omni-channel retailers opening up concept stores. However, smaller Dutch city centres and secondary high streets may still be vulnerable to continued pressure on market rents. Investment liquidity and recovering values are expected to flow back first to primary high streets in the largest Dutch cities, which, along with attractive tenancy and pricing, could attract full equity investors. Food-anchored district shopping centres and supermarkets offer diversification, steady yields and sound fundamentals.
RURAL:
The farmland market fundamentals have been consistently strong in the last decades. Farmland investments have a low correlation with other investment classes and is a diversifier in investment portfolios. The scarcity of farmland, a growing global population and demand for food in combination with a world-leading position on agricultural innovation, creates a continuous demand for Dutch (farm)land. High ambitions for renewable investments also support demand. There remains uncertainty about national and EU legislation though, with the sector undergoing one of the most profound transitions in decades towards a more sustainable sector. Investing in farmland can help investors to reach goals regarding corporate social responsibility.
Investment principles & strategy
The a.s.r. real estate fund’s investment policy is to invest in direct real estate, by selecting core high-quality assets in the best locations in the Netherlands. We provide investors the opportunity to invest in funds with stable, sustainable and attractive returns. While this ensures the quality of the portfolios it also protects against future obsolescence. Key points in a.s.r. real estate’s investment strategies include:
Core funds: Provide investors with stable, low-risk and attractive returns through active asset management with our in-house fund, asset and property management.
Personal approach: It’s all about people. That’s why a.s.r. real estate builds a personal relationship with all of our clients to gain a thorough understanding of their needs.
Long-term: As part of an insurance company, a.s.r. real estate has always felt responsible for delivering long-term returns on invested assets. Forward thinking and sustainability are part of our DNA.
Research-driven investment approach: Research is fundamental to the investment style, philosophy and process. The research department translates market data and market analyses into tailor-made investment views and advisory reports.
Strategic Corporate Development
On behalf of our clients, we invest responsibly in high-quality real estate that fits within a clearly defined strategy. We are convinced that this offers the best guarantee for returns and value development in the long term. Not only for our clients but also for society.
With ASR Nederland N.V. as anchor investor and a strong international investor base consisting of more than 27 institutional investors, a.s.r. real estate is able to anticipate developments and act quickly on opportunities that arise in the market. Such as acquiring assets and portfolios, structuring non-listed real estate sector funds, but also investing in renewables (solar and wind farms).
Performance Verification
The funds’ investment returns are closely monitored and compared with market benchmarks such as the MSCI Dutch or relevant European sector indices. To value sustainability, we use the GRESB scores.
Compliance statement
This is a marketing communication of ASR Real Estate B.V. (a.s.r. real estate), a company incorporated under the laws of the Netherlands included in the AFM register, and is intended for professional investors.
When making investment decisions, all characteristics and objectives of the investment product must be taken into account, as described in the prospectus of the investment product. The prospectus and further information about the sustainability aspects of a.s.r real estate investment products can be found here: https:// en.asrrealestate.nl/investments.
The information provided and the views expressed are carefully prepared as of the date given, however the information may not be complete, entirely correct or may be subject to change and cannot be relied upon for the purpose of making investment decisions.
