In 2015, the Bouwinvest Dutch Institutional Office Fund accelerated the excecution of its optimisation strategy, most notably through the sale of 15 non-core assets, with 14 of these sold as a portfolio. The Fund's intensified focus on multi-use office buildings in prime locations in core regions puts it in a good position to provide stable and predictable direct returns.
Core investment style
7% long-term average annual Fund return target
Robust governance structure
Investment structure for an indefinite period of time
Reporting in accordance with INREV standards
Bouwinvest is the manager and Statutory Director of the Office Fund. The Bouwinvest Board of Directors is responsible for Bouwinvest’s long-term strategy, as well as the day-to-day management of the organisation itself and its assets under management. Bouwinvest’s Dutch Investments business unit is responsible for all real estate investments in the Netherlands. This business unit has a dedicated asset management team specialised in the office real estate sector, with experts in acquisition and divestment, property revitalisation and letting.
Our vision of the Dutch office occupier market
Widespread construction before the last major financial crisis has left the Dutch office market with an oversupply of office space. Supply remains substantial, with vacant space of around 8.3 million m² lfa, or approximately 16% of total office space. On top of this, occupier demand for traditional Dutch office space is generally low, as companies aim to create a more flexible working environment. However, multifunctional, easily accessible, sustainable offices in prime locations in the big cities remain highly sought after. We believe that multi-functional environments, combining flexible working spaces, business networking opportunities, meeting places and leisure facilities will continue to meet today’s and tomorrow’s office requirements.
The Office Fund aims to optimise its portfolio through targeted acquisitions, the revitalisation of assets and the divestment of non-core assets.
The Fund’s strategy focuses on:
Core regions and A-locations with a specific focus on the four big cities (Amsterdam, Rotterdam, The Hague and Utrecht) and a preference for inner-city areas.
Multifunctional locations with excellent transport links Locations that attract a widely diverse group of people are a good basis for an inspiring working environment. The blending of culture, education, sport and work makes a positive contribution.
Multi-tenant assets Multiple lease agreements reduce the volatility of revaluations and help increase the control of asset management risks.
Enhancement of core assets To create a distinctive building proposition, the focus will be on increasing comfort and facilities for users to create an attractive environment that is seen as an appealing (business) meeting place.
Occupancy rate Close relationships with tenants enable the Fund to propose lease extensions at the right time. Partnerships with property managers and (local) real estate agents are important. New leases may also result from close cooperation between (local) government organisations, foreign investment agencies, etc.