Five pension funds in the Netherlands have committed a combined total of €152.5m to Dutch institutional real estate investor Bouwinvest’s domestic Residential Fund, coming into effect from January 1st. The assets under management in the Fund, the largest underleveraged residential fund in the Netherlands, now encompasses approximately €3bn and houses 11 institutional investors, including the five new mandates.
The new investors cited Bouwinvest’s investment management performance and the high quality of the Dutch Residential Fund’s portfolio as critical points for the selection process. Four investors were advised by investment manager Russell Investments and consultants Grontmij Capital Consultants, Almazara and Townsend Group.
The fund targets long-term stable annual returns of 6% for a low level of risk and has consistently outperformed the market benchmark over multiple years. The occupancy rate of the residential portfolio with more than 15,000 units is consistently high, averaging over 97%, and achieved a GRESB Green Star for sustainability since 2014.
Bouwinvest CEO Dick van Hal said: “The interest in Dutch residential assets from both domestic and international institutional investors has sharply increased over the past couple of years, due to the low risk and stable long-term rental income they offer and the very positive dynamics of the market. The demand for mid-priced rental apartments in the Netherlands is vastly exceeding the offering. We are very proud to have attracted five new investors into the Residential Fund on the back of the market outperformance of our investment team.”
The Bouwinvest Residential Fund’s investment strategy is focused on mid-priced rental apartments for families, smaller households, starters and senior citizens, in the liberalised market sector, mainly within the largest cities of the central Randstad urban conurbation and the strong southern regional economy of Brabant.
The assets under management in the fund are expected to surpass €4bn as it has a current development pipeline of around €700m and a further €600m is earmarked for investment over the next few years.
In 2015, the fund invested over €470m in residential units. Acquisitions included a.o.: Nautique Living, Kop Weespertrekvaart and Haarlemmerweg in Amsterdam, Zijdebalen and Haarzicht in Utrecht, UpTown in Rotterdam, Strijp-S in Eindhoven and Onder Onnes in Nijmegen.
