The real estate investments of the Rabobank Pension fund have made a total return on investment of 9.8% over 2003. This was higher than the WM-benchmark of 7.1%. The pension fund is slightly under weight regarding real estate, as it couldn’t find suitable objects to buy. Also the listed real estate shares will be sold as these follow the sentiment of the stock exchange too much.
The real estate investments consist of € 362 million of direct real estate and € 58.6 million of indirect real estate. With a total real estate portfolio of € 420.6 million, this investment category counts for approximately 7% of the total investments. The strategic asset mix demands a weight percentage of real estate of 10%. In the annual report of 2003 the pension fund of Rabobank says that ‘it appeared to be very difficult to buy object which lived up to the expectations.’
The total return on investment on the Dutch direct real estate portfolio was 8.4 % in 2003 (2002: 9%). The empty standing rose from 1.5% in 2002 to 1.7% at the end of 2003. The indirect investments in real estate funds rose with € 6 million to € 59 million as a result of reevaluations. The total return turned out to be 21% against 8% in 2002. The pension fund aims to divest the indirect portfolio over the coming years and to invest the proceeds in direct real estate.