Syntrus Achmea Real Estate & Finance is an investment manager specialising in real estate and mortgage investments for institutional investors. With €21.3 bn assets under management, we are the most active – real estate and mortgage investment manager in the Netherlands, offering services in real estate sectors such as Health Care, Residential, Retail, Office, Residential Mortgages, Commercial Mortgages. We offer services to > 60 institutional clients (predominantly pension funds) through commingled vehicles, funds of funds and separate accounts. The focus of Syntrus Achmea is to achieve stable income returns and long-term capital appreciation by valueenhancement strategies through active asset management. Syntrus Achmea and our legal predecessors have been active on the Dutch real estate and mortgage market for more than 60 years and have a well-established and proven track record. The direct investments comprise predominantly residential, retail, office, industrial and healthcare properties in the Netherlands. Furthermore, property development and mortgage related investments are key activities of Syntrus Achmea. The indirect investments are managed through separate accounts (multimanager activities) and pooled vehicles.
The pooled vehicles have different investment strategies (ranging from core to opportunistic) and geographical allocations (Europe, North America and Asia Pacific). Over €1bn of capital is invested in 40 non-listed property vehicles in fund of funds structures worldwide since 2004.
Syntrus Achmea is part of Achmea, the holding company of a group of strong, successful brands in financial (insurance) services. Within the organisational structure SA RE&F has its own profit and loss account.
OFFICE: The office market benefits from Dutch economic growth and low unemployment rate. Demand for well-located, high quality office space remains unrelentingly high. The pressure on popular office locations is resulting in a decline of high quality office space and causing an overflow to nearby areas. The total return is above 12.0%. Given the continuing demand for quality investment assets and the lack of investment opportunities in Amsterdam and Utrecht, investors’ focus fans out to Rotterdam and The Hague.
RESIDENTIAL: There is a great demand for residential real estate. The prices are rising and the perspectives are very good. The result is a total return above 16.0%. In this environment, only investment managers with strong local networks and market knowledge and with the ability to deliver creative solutions – such as office to residential transformations – are in a position to source the best deals. Rising prices are forcing some investors up the risk curve to more secondary locations and value-add product. Initial yields under 4.0% for residential projects were unheard-of last year, but are a common occurrence now.
RETAIL: There is a high investment demand for core retail properties. However, the availability of high quality assets is limited – or expensive. Therefore the interest for other types of retail segments like convenience retail (grocery – anchored) or near-prime locations is growing. The gap between the performance of prime and secondary locations is still increasing, also because of a sharp divide in consumer interest between different retail locations. Gross initial yields at the core top-end of the retail market are stabilised to 3%. The prospects for rental increases only applies for the best locations in the country.
OTHER: The Dutch economy keeps track of its growth. GDP growth is estimated at 2.9% in 2018 due to the increase of private consumption and a solid outlook for net exports and investment. However, it is to be expected that the pace of growth will moderate to 2.7% in 2019 as a result of a slowing increase of external risks like a possible threat of a trade war as well as a global slowdown of growth. The prospects for the real estate investment markets are bright. Increasing purchasing power and population growth creates strong demand for real estate. For investors the risk appetite increases, interest for near-prime and secondary locations and alternative investment classes is on the rise.
Investment principles & strategy
Our investment solution aims to balance risk and reward to meet investors investment conditions and prerequisites. The investment approach is based on our clients’ goals and investment beliefs and recorded in a portfolio plan, developed in consultation with the institutional investor and revised on a yearly basis. This portfolio plan combines the clients’ beliefs and Syntrus Achmea’s expertise and knowledge, covering the allocations towards domestic, regional or global markets, core to opportunistic strategies, market developments and conditions with regard to risk and return.
Strong attention to corporate governance and environmental standards is the backbone of each client’s strategy. Quantitative and qualitative research analysis is one of the driving forces and key elements of the investment process, starting at the country and sector allocation weightings of the target portfolio in the portfolio plan. A wide range of in-house capabilities including real estate asset management professionals, research and strategy teams is used to gain insight into the underlying property markets. Maintaining local networks and monitoring extensive databases are the fundamentals of selecting the best real estate funds and managers globally.
We opt for sustainable investments. Our mission is to offer our stakeholders a healthy financial future in an attractive living environment.
Strategic corporate development
Syntrus Achmea will focus for the next three to five years on performance, stable supply of new investments, liquidity, risk management and quality. The corporate strategy is based on the following criteria:
- Tailored products and services because every client is unique.
- Wide range of product offerings, which enables optimisation of the investment portfolio.
- In-house expertise at every step in the real estate value chain.
- Diversity and flexibility in one single service point.
- Solid returns and long-term, sustainable growth.
- Permanent focus on low and manageable risks.
Syntrus Achmea B.V. (“Syntrus Achmea”), having its registered office in Amsterdam (Chamber of Commerce no. 33306313), is authorised by the Netherlands Authority for the Financial Markets as intended in article 2:65 sub a of the Dutch Financial Supervision Act (Wet op het financieel toezicht, hereinafter referred to as: “Wft”). This authorisation allows the authorised manager to manage as intended in article 1:1 Wft and authorised to manage individual assets and to advice regarding financial instruments in the exercise of profession or business. The information in this document is intended for professional investors. The information in this document is intended for orientation purposes only and does not constitute a proposal or an offer, nor is it intended to serve as the basis for any investment decision. This information therefore does not offer any party the opportunity to subscribe for a fund or to acquire or obtain financial instruments, personal investment advice or other financial services in any other way. No guarantees or statements are given concerning the accuracy and completeness of the information. No rights can be derived of the information, recommendations and calculated values provided. The information contained in this document is indicative only and may be subject to change may be changed without further notification. The value of investments may fluctuate. Results achieved in the past offer no guarantee for the future. All information in this document is owned by or licensed to Syntrus Achmea and is protected by intellectual property rights. It is not permitted to copy, reproduce or distribute the contents of this document or parts thereof in any manner whatsoever without the express written permission of Syntrus Achmea.
News from Syntrus Achmea Real Estate & Finance
The Achmea Dutch Health Care Property Fund managed by Syntrus Achmea Real Estate & Finance is the world’s best health care fund for sustainability performance after winning first place in its category in the 2016 GRESB Real Estate Assessment.
Syntrus Achmea secures a new €25 million mandate from SPF for its Dutch retail property fund download
Syntrus Achmea Real Estate & Finance has secured a €25 million mandate for its Dutch Retail Property Fund from Stichting Pensioenfonds voor Fysiotherapeuten (SPF, Pension Fund for Physiotherapists)
Syntrus Achmea Opens Flagship Amsterdam Residential Healthcare Project as Dutch Investment Market Soars on Government Sector Shake-up download
Syntrus Achmea Real Estate & Finance opened its flagship De Makroon residential healthcare building in Amsterdam.
Syntrus Achmea Real Estate & Finance has acquired, on behalf of a Dutch institutional client, two prime Haussmann style residential buildings with high street retail units on Place Victor Hugo in the 16th District of Paris.
Dutch Real Estate Yield Compression Accelerating as Debt Returns, Investors Move up the Risk Curve – Syntrus Research download
Amsterdam, October 27 - The recovery in Dutch housing and commercial real estate markets is now accelerating with falling yields approaching levels seen in other main European markets, new research from Syntrus Achmea Real Estate & Finance concludes.
News from IPE Real Assets
Sector expected to benefit from increased population, consumer confidence
Demand outstripping supply, according to chief executive
Pension fund for physiotherapists gives manager €25m to invest in domestic retail
Funds take 35% stake in vehicle
Manager backed with further capital by domestic funds
White Papers / Research from Syntrus Achmea Real Estate & Finance
The Outlook 2019-2021 explains Syntrus Achmea Real Estate & Finance’s vision on the various submarkets in which we invest on behalf of our clients. We have based this vision on analyses of both the investment climate and user market produced by our Strategy & Research team, which have then been translated into recommendations for investment strategies.
Outlook 2017-2019 download
Real estate has become a tremendously popular investment category. Both real estate and mortgages are coveted investment opportunities due to the persistently low and now sometimes even negative interest on government bonds, combined with the uncertain state of the global economy.
Investor demand in the Dutch rental housing market remains very high. The total investment volume continues to rise steadily and amounted to around EUR 1.1 billion in the first half of 2015.
Low long-term interest rates and uncertainty in international investment markets are creating an in flux of domestic and international capital to the real estate markets. In the Netherlands, the risk premium for most retail property is high.
For institutional investors, residential mortgages are an attractive alternative to low-yield bonds. The risk-return profile of this asset class has improved considerably in recent years.
Analysis from IPE Real Assets
Real estate is in demand in today’s low-growth environment. But do investors need to lower their return expectations? Rachel Fixsen speaks to six funds
The UK’s vote to leave the EU has caused investors to re-evaluate political risk. With elections on the horizon across Europe, political instability in the region has never been so pronounced, writes Russell Handy
During the day, investors discussed how to negotiate risks and stay on track, and in the evening Ivanhoé Cambridge came away with the top award
The Dutch capital needs to get grips with its widespread office redundancy. Russell Handy explores some emerging solutions
Real estate debt is fast becoming an established asset class, but it remains challenging. Rachel Fixsen speaks to six investors and advisers