The rental incomes will be under pressure for a while yet. So, yes, this confirms the wisdom of a diversified portfolio all the more.” That also applies to outlet centers like Batavia Stad Fashion Outlet in Lelystad, which are scarcely seeing any decline in the number of visitors. Offices and stores are currently under a lot of pressure, but at the same time, we are seeing that the housing portfolio is stable and that data centers and logistics real estate are doing very well. And please note: that average includes the consequences of the financial crisis in 2008, when things were really bad too. The last fifteen years we have had an average return of 8.7% a year. That is certainly something we are not used to. “We will probably also have a negative return in 2020. In short, we have a very diverse real estate portfolio and our risks are spread out very well.”ĭoes this diverse approach work during a mega-crisis like the corona pandemic? We invest a smaller portion in hotels, student housing, data centers and other things. We invest not only in houses, stores, outlet centers and offices, but also in logistics, i.e. Out of our total investments, about 535 billion Euros as of mid-November, more than 42 billion Euros is in real estate. In Europe it is mostly investments in the Netherlands, England, Germany and France. “Worldwide, we invest about 42% in Europe, 30% in North and South America, and 28% in Asia. In what regions do you invest and what do you invest in? In addition, the sustainability of our real estate is at the top of our agenda it really is a top priority.”
Return on investment is paramount, so that members are assured of an affordable pension. We want to build and manage a portfolio of global real estate investments that offers a predictable dividend and grows in value over the long term. But our investment strategy will not change substantially as a result of the corona crisis. “Part of our real estate is listed on the stock exchange, we can quickly move that if we want to have other emphases for example, invest more in data centers and less in stores. To what extent does that impact your investment strategy? The real estate market is super-hectic right now.
“The time when you could buy an office building as an investor, get someone in there on a 10- or even 25-year lease and then sit back and just send an invoice every quarter has definitely passed.” How does a big real estate investor like APG deal with this? By becoming much more flexible, says Robert-Jan Foortse, Head of European real estate at APG. Offices are standing empty because employees are working from home, consumers are increasingly shopping online, store owners are having a hard time paying their rent. Robert-Jan Foortse, Head of European real estate at APG, about the post-corona investment strategyįor real estate investors, 2020 is also a very turbulent year.
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