Bouwinvest Real Estate Investors has received a combined €288 million in commitments for two of its Dutch funds from new and existing investors. The company raised €196 million for its Office fund with the remaining €92 million allocated to its Residential fund.
The decline in stock and bond prices last year triggered the ‘denominator effect’ of higher relative institutional allocations to real estate, thus exerting pressure on new commitments to property. Rising interest rates and construction costs, as well as stricter legislation and regulations on nitrogen emissions, is also putting pressure on the market in the short term. For the long term, Bouwinvest expects market demand to remain firm as the fundamental drivers underpinning housing demand, such as demographic growth and a huge shortfall of affordable housing, are strong.
Bouwinvest’s Dutch Residential Fund is capitalising on these trends by investing in mid-range and private-sector rental housing in the leading cities, primarily in the heavily urbanised western part of the Netherlands, while Bouwinvest’s Dutch Office Fund invests in office properties in the five largest municipalities in the country: Amsterdam, Rotterdam, The Hague, Utrecht and Eindhoven. These cities are adding a limited volume of office stock to their current supply, while tenant demand for high-quality, sustainable office buildings in inner-city locations near public transport hubs is increasing.
Source: https://www.bouwinvest.com/news/latest-news/2023/bouwinvest-raises-288-mln-for-dutch-office-and-residential-funds, on 23.02.2023