NETHERLANDS - The €211bn civil service scheme ABP is considering selling at least part of its offices investment fund KFN, in order to further diversify its overall portfolio.
"ABP and KFN have hired Morgan Stanley and Kempen & Co as advisors to look at the future of KFN, and the way ABP will fill-in its future stake in KFN," ABP spokesman Michel Meijs said.
He indicated the decision is in line with ABP's policy to decrease its stake in direct property, as has happened with other ABP real estate funds during the past years.
"We are looking at the various options, with the diversification of our portfolio in mind," he said.
"ABP only wants to indirectly invest in property, such as through listed and non-listed funds," Meijs explained.
Because it does not consider property management as a pension fund's core activity, ABP set aside its Dutch property investments into separate housing, retail and office funds in the early 1990s.
According to Meijs, ABP had already indicated by then it planned to reduce its stake in the three funds, after they had build up a track record.
At the end of last year, the pension fund sold its majority stake in the non-listed housing fund Vesteda while earlier, its retail fund Winkel Beleggingen Nederland merged with the then-listed fund VIB, which has since become property investor Corio.
With €1.3bn of assets, KFN is one of the largest investors in offices in the Netherlands.