Investment objective
The Fund has a clear focus on investing in liberalised rental homes, especially in the mid-rental segment in its core regions. The key themes in the Residential Fund's investment strategy are quality, affordability and sustainability, together with the optimisation of the portfolio to meet the current and future demands of both tenants and investors.
Fund characteristics
Core investment style, focus on core regions
Long-term average annual Fund return plan of between 5.5% and 7.0%
Robust governance structure
Investment structure for indefinite period of time
Reports in accordance with INREV standards
Capitalising on a number of significant trends and developments that affect the residential real estate market, the Fund’s strategy will focus on:
The Fund’s core regions with a specific focus on the Holland Metropole region (Amsterdam, Rotterdam, The Hague, Utrecht and Eindhoven) and a number of other thriving cities (Zwolle, Arnhem and Nijmegen). These regions closely correlate with the urbanisation trend in the Netherlands
The liberalised rental sector, with a focus on the mid-rental segment (rents between € 720 and € 1,000 (as per January 2020, € 737 and 1,027) in line with our focus on increasing the proportion of affordable homes in our portfolio
Apartments for starters, one-person and two-person households in inner city areas and family homes in more suburban locations
‘Lifecycle-proof’ homes for the growing number of elderly people
Continuing to improve the Fund’s sustainability performance on both environmental and social fronts
The Residential Fund has a clearly defined strategy of controlled growth and optimisation based on the three pillars of quality, sustainability and affordability. We firmly believe that the residential sector will continue to offer good long-term investment opportunities, especially for investors with a liability hedge strategy. The Fund's plan is to grow its invested capital to € 8.0 billion by year-end 2022. The Fund will achieve this growth through positive revaluations, targeted acquisitions of high-quality assets, investments to keep our assets up-to-date and fit-for-purpose in a changing market and the divestment of assets that no longer meet our strategic pillars. The optimisation of the Fund’s portfolio covers a whole range of aspects, from improving the overall quality of the assets, making them more sustainable, increasing the proportion of affordable homes, maintaining our high occupancy rate, buying off leaseholds, improving tenant satisfaction and introducing innovations in terms of the homes themselves and the (add-on) services we provide.
Focus on quality, sustainability and affordability
We have increased our focus on the three pillars of our dynamic investment strategy: quality, sustainability and affordability to realise controlled growth. We will optimise our portfolio by acquiring only top-quality assets and by disposing of assets that no longer match our vision of the three pillars. The Fund will also optimise the standing portfolio through active asset management and continuous investments to keep the homes in its portfolio up-to-date and fit-for-purpose in an evolving housing market.
