Bouwfonds Asset Management has presented its fourth real estate fund for private investors: Bouwfonds Office Value Fund NV. The fund will buy, exploit and sell commercial real estate (mainly offices) which as much as possible have long leases to solid parties like authorities and financial institutions.
It is expected that the total size of the fund after three years will be approx. €300 million. The forecast average single return on investment is 8% annually with a term of twelve years.
Bouwfonds Office Value Fund is Bouwfonds Asset Management’s the fourth (non-listed) real estate fund for private investors. The fund has a semi open-end structure, which enables investors to get in and out of the fund easily under certain conditions.
The fund anticipates current market conditions by investing in real estate that at the start has long lease contracts to mainly tenants like authorities or financial institutions. The long lease contracts with stable tenants offer investors a relatively stable source of income during the current period of excess supply in the office market. When the situation of excess supply disappears, there will be room for further growth in the office market. Bouwfonds Office Value Fund NV expects to profit from this by carefully tuning the moment of sale of the real estate portfolio to the then prevailing market conditions.
Source: Bouwfonds Asset Management