NETHERLANDS - Dutch pension funds are showing an interest in investing in the rejuvenation of run-down industrial estates in the Netherlands.
"Providing that our criteria are met, we are willing to look at solid proposals from both councils and regional authorities," said Hans ten Brinke, spokesman for the €221m ABP civil service pension fund.
"ABP participating in projects will depend on the expected returns, continuity and the long-term prospects," he added.
It is estimated approximately 15% of the 85,000 hectares of industrial estate in The Netherlands are vacant but instead of rejuvenating existing business parks, councils often choose to set up new ones.
"Although we invest in indirect property, we are not negative towards a fund that invests in these kind of projects," Geert de Nekker, director real estate at the €25.5bn asset manager and pensions provider Cordares, suggested.
"Our interest will, however, depend very much on the type of location. For example, we don't want a new industrial estate being set up nearby," De Nekker explained.
In addition, Cordares might also be interested in investing in the transformation of run-down business parks into residential estates or retail centres, he also made clear.
Find more stories on institutional investment into real estate on www.iperealestate.com.
IPE's sister publication IPE Real Estate has a weekly online newsletter for which you can subscribe free of charge. On the webpage you can also subscribe to the IPE Real Estate magazine.