Bouwinvest Real Estate Investors has received a combined €288m in commitments for two of its Dutch funds from new and existing investors. The company raised €196m for its office fund with the remaining €92m allocated to its residential fund.
Marleen Bosma, Chief Client Officer at Bouwinvest said: "I am proud that Bouwinvest has received these commitments which enable us to contribute further to improving retirement benefits for our clients. These new investments allow us to implement the next phase of our strategy and expand our future-proof portfolio. In addition to offering participations in our existing funds, Bouwinvest also wants to start providing new services and products to attract a wider variety of investors.”
The decline in stock and bond prices last year triggered the ‘denominator effect’ of higher relative institutional allocations to real estate, thus exerting pressure on new commitments to property. Rising interest rates and construction costs, as well as stricter legislation and regulations on nitrogen emissions, is also putting pressure on the market in the short term. For the long term, Bouwinvest expects market demand to remain firm as the fundamental drivers underpinning housing demand, such as demographic growth and a huge shortfall of affordable housing, are strong.
Bouwinvest’s Dutch Residential Fund is capitalising on these trends by investing in mid-range and private-sector rental housing in the leading cities, primarily in the heavily urbanised western part of the Netherlands, while Bouwinvest’s Dutch Office Fund invests in office properties in the five largest municipalities in the country: Amsterdam, Rotterdam, The Hague, Utrecht and Eindhoven. These cities are adding a limited volume of office stock to their current supply, while tenant demand for high-quality, sustainable office buildings in inner-city locations near public transport hubs is increasing.
Mark Siezen, CEO at Bouwinvest, concluded: "These investments will enable Bouwinvest to continue with its mission to create real value for life. Our asset management strategy contributes to sustainable, liveable and accessible urban environments while also guaranteeing stable pension payments. A growing number of investors support these goals which is inspiring me to take the next step to create value for our clients, the communities which we invest in on behalf of our clients and a more sustainable world."