The Bouwinvest Dutch Institutional Residential Fund has a clear focus on high-quality residential properties in the mid-rental sector and the core regions it has identified on the basis of their solid economic and demographic outlook. This focus puts the Fund in an excellent position to provide consistently solid returns with inflation-hedge characteristics.
Fund characteristics
Largest unleveraged Dutch residential fund
Core investment style
6.0% long-term average annual Fund return target
Robust governance structure
Investment structure for indefinite period of time
Reporting in accordance with INREV standards
Fund management
Bouwinvest is the manager and Statutory Director of the Residential Fund. The Bouwinvest Board of Directors is responsible for Bouwinvest’s long-term strategy, as well as the day-to-day management of the organisation itself and its assets under management. Bouwinvest’s Dutch Investments business unit is responsible for all real estate investments in the Netherlands. This business unit has a dedicated asset management team specialised in the residential real estate sector, with experts in acquisition, divestment, exploitation and letting.
Our vision of the Dutch residential investment market
Promising long-term outlook
Stable, inflation-hedged income returns
Interesting opportunities for value growth
Performance mainly driven by demographic developments, affordability and income development
Demand for rental homes in the mid-rental segment remains high
Continued shortage in housing market offers long-term investment potential
Our approach
Maintain a diversified portfolio of high-quality rental properties
Focus on the mid-rental sector in the liberalised segment of the residential market
Located in attractive residential areas in economically and demographically strong regions
Focus on acquisition of newly-developed assets
Assets designed to meet tenants’ demand for sustainable and life-cycle proof accommodation
Acquisitions
We have a clear vision of what makes an interesting asset for the residential portfolio. Thanks to our hands-on approach, we are frequently involved in new residential projects at a very early stage. This gives us the opportunity to use our knowledge and experience to optimise the project for our specific target groups in a particular city or region. In our acquisition process, the construction of homes starts only once the sales agreement has been concluded. This creates a time lag between the agreement and the completion of the homes.
Divestments
The Fund's aim is to continuously optimise its portfolio, by creating a well-balanced portfolio of homes that meet the demands of a wide range of clearly identified target groups. If individual buildings or complexes underperform in terms of our targeted returns, we may decide to sell. That is unless we see an opportunity to upgrade a building or complex to meet the needs of today's increasingly demanding tenants.
Fund strategy: Growth
The Residential Fund aims to increase its assets under management to € 4.1 billion by 2018. This will be achieved through targeted acquisitions and a positive revaluation from 2015 onwards. Capitalising on key market developments, the Fund’s acquisition strategy focuses on:
The Fund’s core regions
with a specific focus on the Randstad conurbation and a preference for inner-city areas.
The liberalised rental sector
The liberalised rental sector (rents of € 711 and up) is especially interesting for the Fund, as rent increases are not subject to government restrictions
The mid-rental sector
With an average monthly rent of € 966, the focus of the Fund continues to be on the mid-rental segment (rents between € 711 and € 1,250).
Starter homes, homes for one-person and two-person households and family homes
Apart from the fact that there is an unanswered and growing demand for rental housing for smaller households in the large cities, we also see a large demand for family homes in the Fund’s core regions.
‘Lifecycle-proof’ homes or residential environments for elderly people
Although the rental market is often already very suitable for seniors, thanks to its flexibility, we consider additional ‘lifecycle-proofing’ of certain properties.
Homes with above-average energy-efficiency
The Fund’s sustainability-related ambitions are focused on increasing the sustainability performance and attractiveness of its properties, and by doing so, increasing the value of the Fund’s property portfolio.