NETHERLANDS - ABP is to up its investment in listed property, just months after the €215bn Dutch pension scheme divested part of its listed portfolio in Europe and US.
Patrick Kanters, ABP managing director for real estate in Europe and Asia-Pacific, said ABP was scouting "good opportunities" in the listed real estate market despite disappointing recent returns.
After several years of solid returns, listed real markets ended in negative territory in European, US and Asia—Pacific markets, although Asia was "least hard hit", said Kanters.
"We will continue to increase our allocation to the Asian region and remain active in reinvesting in both the EU and the US," said Kanters. "In general, our view is that there are good opportunities in the listed market now and various opportunities to capitalise on emerging market dynamics both through listed and non-listed real estate."
Real estate generated a negative return of -9.4% in the scheme's 2007 annual results, compared to a 3.8% total return on the scheme's total assets. That said, the exception to an otherwise moribund performance came with double-digit returns from ABP's unlisted real estate portfolio.
Infrastructure likewise produced an "excellent" return of 21% as a result of revaluations of some European and US investments at the end of 2007. However, Kanters said infrastructure's relative performance was unlikely to change the scheme's strategic asset allocation.