23 March 2016
The Bouwinvest Office Fund generated a total return of 1.4% in 2015, this is less than the benchmark, as we repositioned the portfolio to focus on properties with better long-term prospects. Nevertheless, the Office Fund’s average five-year total investment return managed to outperform the benchmark with 2.3% compared with a 0.6% average return for the IPD Netherlands Annual Office Property Index.
“2015 was a transition year for the Office Fund,” said Bas Jochims, Head Asset Management Offices at Bouwinvest. “Our optimisation strategy for the portfolio has created a solid basis with which to continue the Fund’s long-term outperformance. Last year’s dip did not come as a surprise and we are confident about the future for the office portfolio, which will deliver attractive returns for investors.”
Optimising the offices portfolio
The Fund sold 14 buildings as part of the accelerated optimisation strategy last year. These properties no longer fitted in a portfolio focused on multi-let offices that offer flexible and sustainable space in easily accessible, city centre locations. The Fund’s portfolio now consists of highly distinctive buildings in the four largest cities of the Netherlands.
The Fund also invested in enhancing the retained portfolio. This included improvement works to the central hall of the WTC The Hague to create a hub for international operating companies and businesses. Furthermore, preparation work started for the redevelopment of the historic Citroën buildings, close to the Olympic Stadium in Amsterdam and the Fund anticipates that it will be able to disclose shortly which occupiers have committed to taking space in this attractive project.
Another notable milestone last year was the first investment in the Fund alongside bpfBOUW by a foreign institutional investor.