Dutch real estate investment manager Bouwinvest REIM has committed €100m 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%.
Stephen Tross, Managing Director International Investments at Bouwinvest, said: “Bouwinvest is increasing its allocation to international real estate markets to achieve greater risk diversification across geographies and cycles, while achieving optimal returns. The investment with Hines reflects our confidence that their investment philosophy is closely aligned with Bouwinvest’s values and that they can achieve our core-style return targets.”
The Hines Pan-European Core Fund has around €860m of assets under management, allocated to the strongest, most mature and transparent real estate markets and cities in Europe. The fund provides a stable net dividend return of 4.0 to 4.5% per annum.
The open-ended fund has a low risk profile and focuses on prime office and high street retail assets. The portfolio includes properties in Berlin, Frankfurt, Düsseldorf, Hamburg, Stuttgart, Paris, Dublin, London, Edinburgh, Barcelona, Madrid, Florence, Milan and Copenhagen. Hines was ranked in the Top 10 of IPE Real Estate’s Top 100 Investment Managers Survey 2016.
Bouwinvest has secured a seat on the advisory board of the fund, allowing it to represent the interests of its parent investor bpfBOUW, the Dutch Construction Workers Pension Fund, in the evolution of the investment strategy.
