NETHERLANDS - The Dutch Association of Institutional Property Investors (IVBN) has extended its earlier framework to prevent fraud in institutional real estate investment, as the second Dutch pension fund to be hit in the ‘bouwfraude' case continues its internal probe.

IVBN has published a new note on managing fraud risk in the institutional real estate sector giving tips on buying and selling, valuing and exploiting real estate, in light of the continuing investigations by the Dutch fraud-squad into several real estate transactions.

IVBN has also published a number of conversations with participants in the real estate sector, such as executives from ROZ IPD Real Estate Index, financiers, notaries and estate agents, about how to reduce the risk of fraud.

The publication comes as the €25bn pension fund for the construction industry BPF Bouw said it expects to finish its internal probe into its involvement in a real estate scandal by the end of this month.

Dick van Hal, the newly-appointed director of the fund, told IPE officials plan to share the first results of the internal research as soon as it is completed.

Two of BPF Bouw's former employees and one person still working at the fund are under investigation by the fraud-squad FIOD-ECD, Van Hal confirmed.

The Dutch ‘bouwfraude' case, which started in November last year, was sparked as several ex-executives of the Philips pension fund and the Rabo Bouwfounds are suspected of committing fraud by swindling their employers out of several hundred millions of Euros.

BPF Bouw was also revealed last month to be latest victim of the large-scale property fraud.

The industry-wide scheme's property investment manager, BPF Bouwinvest, may have lost between €2m-€3m in a transaction involving the planned construction of the skyscraper Coolsingeltoren in Rotterdam, for which the first stone still has yet to be laid.

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