The Fund’s growth strategy
The Residential Fund has a well-defined growth strategy, as we believe the residential sector continues to offer good long-term investment opportunities, especially for investors with a liability hedge strategy. The Fund's target is to increase its net asset value (NAV) to € 4.2 billion in 2018 from the current € 3.2 billion. In addition to the positive revaluations, the Fund will achieve this growth through targeted acquisitions of high quality assets.
Capitalising on a number of significant trends and developments that affect the residential real estate market, the Fund’s acquisition strategy will focus on:
The Fund’s core regions, with a specific focus on the Randstad conurbation and a preference for inner-city areas
The liberalised rental segment, as rent increases are not subject to government restrictions
Mid-rental segment (rents € 711 - € 1,250)
Starter homes for one-person and two-person households and family homes
‘Lifecycle-proof’ homes or environments for elderly people
Homes with above-average energy-efficiency
Key market developments | Underlying aspects | Implications | Opportunities |
Strong demand for Dutch investments | • | Economic outlook for the Netherlands has improved strongly | • | Investment and liquidity in residential real estate investment market is at its highest point since the onset of the 2008 crisis | • | Stable and attractive returns |
• | Fundamentals for the Dutch residential market have recovered swiftly | • | The continuing interest has resulted in yield shifts, pushing up prices |
• | Dutch markets still attractively priced compared to other key markets | • | Sub-prime markets will develop in line with top of the market in the near future, albeit to a lesser extent |
Changing demographics | • | Quantitative gap - Urbanisation. Population growth and the increase in the number of households | • | The resultant gap between supply and demand will continue to put pressure on the market |
• | Qualitative mismatch - Single-person households and elderly are changing the market | • | Starters will be looking for good quality rental property |
| | | • | Increasing demand for so-called lifecycle-proof housing developments |
Government measures in favour of rental market | • | Housing associations are more focused on their core task | • | A more level playing field |
• | Phased reduction of tax relief on mortgage interest | • | Demand for liberalised rental homes is expected to double in the next thirty years |
• | Fewer people are willing or able to enter the owner-occupier market | | |
Strategic actions in 2015
Reached agreement on investments of € 466 million in new properties
100% of acquisitions located in Bouwinvest's core regions
Acquired 1,712 apartments in liberalised mid-rental segment
Acquired 395 family homes in liberalised mid-rental segment
Sold assets valued at € 6.3 million