Bouwinvest Real Estate Investors B.V. is specialised in managing real estate portfolios for institutional investors. Bouwinvest strives to achieve risk-adjusted returns on behalf of its pension fund clients. We manage €10.5bn (HY 2018) in assets within five Dutch property sector funds and three international real estate investment mandates in Europe, North-America and Asia-Pacific.
Expertise as foundation for growth
With 65 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 150 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.
Dutch sector forecasts
OFFICE: The most important and fundamental drivers of the real estate office market are economic growth and the employment market environments, 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 residential rental sector has a strong base thanks to three market characteristics: 1). The number of households in the Netherlands is projected to grow until 2030 due to an increase in single occupiers and underlying population expansion. 2). The Dutch residential market also has both a quantitative and qualitative shortage of housing supply. 3). The owner- occupier side of the market has been under pressure from rising prices and tighter restrictions on mortgage lending, which has resulted in increasing demand for rental accommodation. Together these factors provide a solid foundation for the residential investment market and the opportunity for future rental increases, which in turn can offer a good inflation hedge through indexation.
RETAIL: The Dutch retail investment market is characterised by a hierarchical structure topped by inner city, urban district and neighbourhood shopping centre locations. The inner cities are attractive for their core investment characteristics, while district shopping centres provide a stable income flow, which is less dependent on the economic cycle due to their convenience function for daily shopping necessities. The different consumer groups for these two retail asset classes therefore also provide portfolio diversification opportunities.
OTHER: Dutch healthcare real estate: We see healthcare real estate as a growth market. The continued ageing of the population in the Netherlands and, at the same time, the withdrawing of the government from the care sector increases the demand for assisted living facilities. The market has both a quantitative and qualitative shortage of housing supply. It 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 elderly and disabled care.
Dutch hotel real estate: Hotels are an asset class with a proven track record as a solid 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. For the nearby future we foresee a growth in visitors to Amsterdam until 2020. Travel and tourism activity in Amsterdam is continuing to increase as a result of the increase of international visitors, which make up more than three quarters of total visits to the city. Growth is also foreseen through domestic visitors.
Investment principles & strategy
The Dutch funds have diversification and risk profile guidelines at both the property and location levels. This results in a focus on core regions with positive economic and demographic outlooks. The absence of leverage and their core investment strategies mean these funds are characterised by low to moderate levels of risk.
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.
- 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 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 that was from 2003 a subsidiary of bpfBOUW, the Dutch Construction Workers Pension Fund. In January 2010, bpfBOUW’s Dutch real estate investments were transferred to Bouwinvest. These comprise five sector funds: a Residential Fund, Retail Fund and an Office Fund, which are all open to Dutch and international institutional investors. In addition, a Hotel Fund and a Healthcare Fund 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 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.
News from Bouwinvest Real Estate Investors
Bouwinvest’s Dutch Residential and Retail Funds attracted new mandates from a range of investors in the first half of 2018, including the Public Transport (Pensioenfonds Vervoer) and Hospitality Industry (Pensioenfonds Horeca & Catering) pension funds.
Bouwinvest REIM has committed €100 million to the Hines Pan-European Core Fund, extending its allocation to core European retail and office markets to benefit from resurgent growth in European economies and in line with a strategy to lift international investments outside the Netherlands to 40% of the portfolio from 35%.
The Bouwinvest Office Fund has signed eight rental leases for a total of 5,140 sqm within its multi- tenant building WTC The Hague in the past six months. These contracts were for a combination of new tenants and lease renewals for office and retail space.
Bouwinvest REIM has signed an agreement with ERA Contour and J.P. van Eesteren, two subsidiaries of sustainable redevelopment group TBI-Ondernemingen, for the purchase of 209 apartments spread across three buildings part of project Little C on the banks of the Coolhaven in Rotterdam.
Institutional Real Estate Investment manager Bouwinvest has agreed to purchase 70 affordable mid-rental sector studio apartments.
News from IPE Real Assets
Property investor for BpfBouw adds €28m to joint venture
Investment manager offloads assets five years after purchase
Sector expected to benefit from increased population, consumer confidence
Property investor to shift focus from Europe to Asia Pacific, US
Investment manager nears close of club deal
White Papers / Research from Bouwinvest Real Estate Investors
Market concerns over a projected surge in the development pipeline for Dutch retail real estate is keeping risk premiums for quality assets in sectors and locations insulated against this oversupply at too high a level, offering attractive opportunities for investors able to access these properties. Read more in Bouwinvest’s latest retail research white paper.
Eight large institutional fund managers of Dutch residential property have joined forces to inform their existing clients and other investors on the merits of investing in residential properties, both in the Netherlands and in general.
The Dutch housing market has been a subject of discussion for some time already. After several decades in which both owner-occupier and rental homes appreciated in value, a period for reflection has now arrived
Analysis from IPE Real Assets
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