24 March 2015

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Solid capital growth and value added through active asset management have powered all Bouwinvest’s Dutch property sector funds to outperform benchmarker IPD’s annual total return indices for the real estate investment market in the Netherlands over multiple years, the most recent results for 2014 show.

Allard van Spaandonk, Director Dutch Investments at Bouwinvest, said: “Bouwinvest had an excellent investment year in 2014 completing around €600 million in acquisitions across property sectors and the major cities in the Netherlands. Close attention to active portfolio management and our relationships with tenants and property managers, mean that we have been able to successfully outperform IPD’s Dutch market benchmark indices over multiple years to produce superior returns for our investors.”

Bouwinvest Property Sector Funds’ Results in 2014

  • The Dutch Residential Fund beat the IPD Annual Property Index for the fifth year in a row in 2014 with a total investment return of 5.8% versus the market benchmark’s 5.2% last year. This successful track record, combined with five new institutional investment mandates for the fund and robust capital inflows, will allow Bouwinvest to invest a further €700 million in the Dutch residential market for its clients over the next few years.
  • The Retail Fund’s total return was 2.7% versus 2.0% for the IPD index. Last year was a very active one for the fund with a large part of its disposals programme implemented. The development of new shopping centres on Amsterdam’s Stadionplein and in Ede’s Kernhem area were also started in 2014 and 8,000 sqm of retail property was acquired in Rotterdam city centre. This year’s portfolio activity will be crowned by the delivery of the flagship retail development on Amsterdam’s gateway Damrak shopping thoroughfare, which is scheduled towards the end of 2015. Together these investments will underpin stable income returns for the Retail Fund for many years to come.
  • The Office Fund’s total return dipped below the benchmark in 2014 to 1.3% versus 3.3% due to the non-recurring costs of acquiring the Beurs-WTC in Rotterdam and Amsterdam’s Valina asset — as well as the two landmark Citroën office buildings in the city, which should all significantly contribute to the vehicle’s future investment performance.

Multi-year Outperformance for All Bouwinvest Funds

  • The Residential Fund outperformed IPD’s Dutch index over three and five years, producing an average total return of 2.5% and 3.1% respectively, compared with 1.9% for the benchmark over both periods.
  • The Retail Fund beat the benchmark’s Dutch market multi-year averages with a total return of 5.3% for three years and 6.3% for five years, versus 2.6% and 4.5% respectively for the index.
  • The Office Fund’s average three-year total investment return was 1.1% compared with -0.9% for the benchmark, while its five-year total return was 2.7% versus the index at 0.6%.