bpfBOUW's Bouwinvest REIM to market services to third parties
NETHERLANDS - Bouwinvest REIM, the €6bn property manager of the large pension fund for the building sector bpfBOUW, has started to actively market its services.
Currently, the real estate manager is talking with at least two large pension funds about taking over property management, according to David van As, director of the €34.5bn bpfBOUW.
Bouwinvest is a full subsidiary of BOUW, since it was set apart from the pension fund in 2003.
Last year, it returned 4.9% for bpfBOUW. During 2008, 2009 and 2010, it generated -4.7%, -10.5% and 3.3%, respectively.
Van As attributed the performance of Bouwinvest both to its property selection and its management.
"The strategic focus has been on varied high-quality property, spread over mature and transparent countries and sectors in promising regions," he said.
The target ratio of real estate investments in the Netherlands and abroad for bpfBOUW is 68% and 32%, respectively, in 2012, according to BOUW's 2011 annual report.
Approximately 50% of its entire real estate holdings consist of non-controlled domestic rental property in the Netherlands, which acts as an inflation-resistant investment, according to Van As.
In addition, Bouwinvest's aim is to limit project development, leverage and investments in listed property to a minimum, he said.
In the opinion of the director, bpfBOUW's property manager has also benefited from its focus on "integrity".
For example, to decrease valuation risk for its portfolio of Dutch property, Bouwinvest hires external independent surveyors for quarterly reporting who are replaced every three years.
Valuations that differ by more than 5% are subjected to further analysis, Van As said.