This website uses cookies to remember your personal preferences and gather statistics. Click here for more information about cookies.

Yes, I agree No, I do not agree X

The Fund’s strategy

The Office Fund’s strategy is to optimise its portfolio through targeted acquisitions and continuous enhancement of core assets.

The Fund’s strategy focuses on office properties that currently generate predictable and stable returns and will continue to do so in the future, taking into account the trends and development in the office market. In addition to this, the Fund’s strategy is focused on active asset management to optimise the portfolio and keep it as future-proof as possible. Based on the market trends and developments described above, the Fund’s strategy focuses on:

  • Core regions and property in A locations. The Funds' core regions closely correlate with the trends towards urbanisation and a knowledge-based economy. In 2017, the core region policy was tightened in such a way that only Amsterdam, Rotterdam, The Hague and Utrecht are now considered core regions. At least 80% of the Fund’s investment will be in its defined core regions. The Fund has a preference for inner city areas.

  • Multifunctional locations. Good retail, residential and leisure facilities play a major role in the appeal of (business) meeting places. Locations where a widely diverse group of people come together form a good basis for an inspiring working environment. The blending of culture, education, sport and work makes a positive contribution to this environment.

  • Multi-tenant assets. This type of exploitation may reduce the volatility of revaluations and could increase the control of asset management risks, thanks to multiple lease agreements with different expiry dates and debtors. 

  • This type of exploitation may reduce the volatility of revaluations and could increase the control of asset management risks, thanks to multiple lease agreements with different expiry dates and debtors. 

  • In 2017 a multi-tenant asset has been defined as follows:

    • the two largest tenants/ leases account for a maximum of 80% of the total rental income at asset level; and

    • the largest tenant/ lease accounts for a maximum of 75% of the total rental income at asset level;

    • vacancy is considered to be let to multiple tenants.

  • Reporting of multi-tenant assets will occur according to this definition as of 2018.

  • Enhancement of core assets. Every asset needs a distinctive character to outperform. Good accessibility, technical condition and parking spaces are no longer sufficient. To create a special building proposition, the focus will be on increasing comfort for users and providing an attractive environment that is seen as an appealing (business) meeting place. An office may be special, for instance, because of full service concepts devised to provide tenants with a high level of service or due to the building’s history.

  • Sustainability. We believe that green buildings can help combat climate change, as well as achieve numerous other wider social, economic, environmental and health benefits. Acting responsibly is therefore an integral part of the Fund’s investment strategy and we are certain it lowers risks, increases returns and increases lettability.

  • Occupancy rate. Close relationships with tenants enables the Fund to propose lease extensions at the right time. Partnerships with property managers and (local) real estate agents are important. New lettings may also result from close cooperation between (local) government organisations, foreign investment agencies, etc. Maintaining and expanding our networks is an ongoing activity. Sometimes, property upgrades are necessary to support or improve a competitive proposition. These always take sustainability into account.

Responsible investment strategy at Fund level:

  • Our ambition is to be in the leading group of sustainable real estate managers. We want to set the standard in our sector and create and sustain stakeholder value through effective integration of material ESG issues that lower risks and future-proof our real estate investments.

  • The Fund’s long-term ambition is to retain its five-star ranking according to the Global Real Estate Sustainability Benchmark (GRESB).

Responsible investment strategy at asset level:

  • Focus on assets with an above-average sustainability performance (environmental impact, stakeholder value and community engagement).

Diversification guidelines and investment restrictions

The Fund applies a defined set of Investment Restrictions in the execution of its strategy. The Fund will adhere to the following Investment Restrictions to focus on its core activity and to limit risks. In the Fund Plan 2018-2020 the diversification guidelines have been slightly expanded.

Diversification guidelines

Current portfolio

Conclusion

≥ 80% of investments invested in the core regions

100.0% in core regions

Compliant

≥ 90% of investments invested in low or medium risk categories

100.0% in low and medium risk

Compliant

Investment restrictions when the total investments of the Fund are > € 750 million

  

< 15% invested in single investment property

There is one investment properties exceeding 15%

N/A *

< 10% invested in non-core office properties

6.1% concerns non-core office properties (2 public parking assets)

N/A *

No investments that will have a material adverse effect on the Fund’s Diversification Guidelines.

There have been no investments in 2017 that have a material adverse effect on the Fund's diversification guidelines

N/A *

Restrictions on (re)development activities < 5% of the Fund's total investment portfolio value

  

a. only Assets from the Fund's porfolio qualify for (re)development

In 2017 all (re)development activities were executed only for assets of the Fund's portfolio

Compliant

b. the activities are exclusively targeted at optimising the quality of the portfolio

All activities were targeted at optimising the quality of the Fund portfolio

Compliant

c. not allowed if it has a negative impact on the Fund’s Diversification Guidelines

There was no negative impact on the Fund's diversification guidelines

Compliant

d. signed commitments relating to at least 60% of the rental income of the Asset is required

Commitment > 60%

Compliant

e. (re)development is undertaken by and for the risk and account of Bouwinvest Office Development, a wholly owned subsidiary of the Fund

All (re)development activities are undertaken by and for the risk and account of Bouwinvest Office Development

Compliant

f. all financial risks in connection with the work to be conducted as part of the (re)development will be contractually excluded by Bouwinvest Office Development and transferred to external developers or contractors. Examples of such risks are: design and building risks and cost and planning risks

All financial risks in connection with the work to be conducted as part of the (re)development are contractually excluded by Bouwinvest Office Development and transferred to external developers or contractors

Compliant

g. zoning risks remain with the Fund, however starting the building activities in relation to a (re)development is conditional upon obtaining the relevant zoning permits

The building activities in relation to a (re)development were conditional upon obtaining the relevant zoning permits

Compliant

(*) The total value of investment property and investment property under construction in the Fund is € 596 million, so the restriction is not yet applicable.

  • Share this article