Pensionfund PGGM has sold real estate investments for the amount of â⬠400 mln. in 2002 to diminish the real estate part of the total investmentsportfolio. Real estate seemed to be increasing above the strategic norm of 16% of the investmentsportfolio, because of the decrease in value of the normal share sector. The total return on investment of the real estate portfolio of over â⬠7 bln. was 9.1 % in 2002 (9.8 % in 2001).
PGGMââ¬â¢s real estate portfolio mostly consists of indirect real estate. It is now 15.5 % of the total investmentportfolio which in total represents an amount of â⬠45.3 bln. The largest real estate investment is in Rodamco Europe with an interest of â⬠1.06 bln. The interests in Amvest and VastNed Retail are also in PGGMââ¬â¢s top 10 of largest real estate investments with respectively â⬠682 mln. and â⬠173 mln.
To keep her interest in normal shares and participations on the strategic level of 45.5 %, PGGM bougt new shares for the amount of â⬠4.3 bln. in 2002. The return on shares remained negative with -22.8 % on the total investment of â⬠20.5 bln. The degree in coverage declined from 122 % at the end of 2001 to just 100 % at the end of 2002. To increase this percentage PGGM is considering to carry through a increase in premium for her participants in the care- and welfaresector.
Source: PropertyNL
