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., the second largest listed insurer in the Netherlands.
Investing in perpetual value
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, agricultural land and renewable energy. We also manage separate accounts 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:
The occupier market needs time to absorb the continued stock growth and expected pipeline. This will put some downward pressure on market rental value growth – however, modern and sustainable assets are expected to stay in demand. Moreover, recovering venture capital flows will increase demand, although budget cuts on higher education and science might neutralise this. The long-term growth trend of knowledge-based industries is expected to continue as Dutch tech companies are globally competitive although protectionism and migration control could stifle innovation.
OFFICE:
Polarisation in the office market is expected to continue as tenants continue to focus on sustainable, high-quality, and easily accessible office buildings. Therefore, the Dutch office market is likely to remain divided between prime markets (G5 intercity hubs) and other locations. Some additional repricing is expected, especially in suboptimal locations and assets. Hybrid working-proof floorplans, shared spaces, and great office technology could improve market rental value growth in the right locations as new developments remain limited.
RESIDENTIAL:
The rent control regulations have been implemented this year, putting a cap on future returns, but also ending uncertainties surrounding this topic. Moreover, with the ECB rate cuts, a new price balance appears to have been found as yields are stabilising and are paired with strong market rental value growth. Investor sentiment also seems to be picking up, and with strong price growth expected in the owner-occupied market and growing housing shortage, the vacancy rates are expected to remain low, and solid market rental value growth is likely to persist.
RETAIL:
The outlook for the retail market is improving. Expected economic normalization will push up consumer purchasing power. Moreover, the stable economic outlook will convince successful and financially solid retailers to (re)locate. This could lead to increasing market rental value growth, particularly on supply bounded primary high streets in G-4 city centres and dominant convenience centres. Retail bankruptcies could still push up average vacancy rates though. Recent ECB interest rate cuts will accelerate the decreasing impact of interest rate hikes on retail yields, which in turn helps to increase the attractiveness of retail investments.
RURAL/RENEWABLES:
The farmland market fundamentals have been consistently strong in the last decades. Farmland investments have a low correlation with other investment classes and are 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 and managing separate accounts.
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.
