Bouwinvest, the €6bn property manager of the pension fund for the Dutch building sector, has said it wants to add facilities for combined care and housing to its portfolio as part of plans to grow to €7.7bn over the next two years.
It is also committed to reducing management costs to make itself more attractive to external investors, according to its 2013 annual report.
The company, which has €750m available for new investments, reported a total return on its Dutch activities of 0.8%, which almost equals its 2012 result.
The company’s overall direct return was 4.2%.
With a total return of 8.1%, Bouwinvest’s Retail Fund showed the best result, while its Hotel Fund generated a 7.1% return.
While Bouwinvest incurred a 0.3% loss on its offices investments, the return on its €2.6bn Residential Fund was 0%, after direct returns of 3.6% and an equal indirect loss.
Last year, the property manager invested €165m in Dutch housing, in particular in apartments and single-family homes.
“As most investors are still waiting, we have been able to acquire first-class assets against reasonable prices,” the company said, which also made significant investments in the retail sector.
Last year, it committed itself to a total of €677m in new investments.
Although Bouwinvest noted that property prices were still under pressure, and its Dutch sector schemes dropped 4% in 2013, it said it expected that the prices for rental housing would bottom out this year.
“The first external investor seems to confirm this trend,” it said, referring to the Rabobank Pensioenfonds, which invested €50m in its Residential Fund earlier this year.
Bouwinvest also said that Dutch direct property deals, with a volume of €5.6bn last year, were approaching the long-term average of €6bn.
The property manager’s €1.9bn global real estate portfolio returned 7% due chiefly to higher valuations of non-listed North American property as well as listed investments.
However, Bouwinvest Development still suffered from the downward revaluations of plots and projects last year.
Last February, the property manager received an AIFMD licence, and it is now in a better position to attract European investors, it said, adding that it received the ISAE certificate for “all correct control procedures” last year.
Dick van Hal, chief executive, is currently also acting as CFO, since Roel de Weerd left the company at the end of last year.