The Fund’s optimisation strategy
The 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, the Fund’s strategy focuses on:
Core regions and property in A locations. At least 80% will be invested in defined core regions. The Fund has a specific focus on the four big cities (Amsterdam, Rotterdam, The Hague and Utrecht) and 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.
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. The Fund aims a BREEAM Good rating for every asset.
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.
Strategic actions in 2016
Acquisition of Hourglass in Amsterdam’s Zuidas business district
Start of upgrade of The Olympic 1931 and The Olympic 1962 (Amsterdam)
Re-opening of WTC The Hague after upgrade of entrance area
Successful clustering of like-minded CSR-parties in Nieuwe Vaart (Utrecht), including a renovation, new lettings and improvement of sustainability
BREEAM In Use quick scans and certifications
Renovation office spaces in WTC Rotterdam
Continued active asset management approach led to extended leases with major tenants