BpfBouw, the €40bn pension fund for the Dutch building industry, is planning to increase its investments in Dutch real estate to €6.6bn, having already allocated €500m for new developments.
It is also considering investing in property in the care sector, according to its 2013 annual report.
Last year, nearly 20% of BpfBouw’s entire portfolio was invested in the Netherlands, and more than half of that was in property.
The pension fund expected the extension of its local property holdings would generate stable returns of 3.5%.
BpfBouw said it largely continued to stick with its investment mix of 15.3% real estate, 33.3% equity and 40.5% fixed income. However, the board has decided to set the allocation to private equity, commodities and hedge funds – last year 2.6%, 4.1% and 3.7%, respectively – at 4% each.
It started investing in sustainable energy and responsible nature and forestry conservation through ‘green bonds’.
The pension fund’s property holdings returned 1.6%, but its stake in global real estate produced 7%, it said.
BpfBouw has almost 806,000 participants in total, affiliated with 11,620 employers.