Dutch insurer ASR is seeking a buyer for its real estate development arm, but is retaining its €4 bn property asset management business.
Dutch insurer ASR is seeking a buyer for its real estate development arm, but is retaining its €4 bn property asset management business.
ASR revealed the plan to exit real estate development as it announced a net profit of €397 mln for the first half of 2015, up from €171 mln for the same period last year.
The insurer indicated it wanted to concentrate on its core businesses of insurance and asset management as it positions itself to become an independent company. Although one of the largest insurance providers in the Netherlands, ASR has been owned by the Dutch state since it was split from failing Belgian-Dutch banking group Fortis during the 2008-2010 financial crisis.
ASR Real Estate Development has a 40-member team and is one of the largest developers operating in the Dutch market.
The decision is the latest example of major Dutch financial groups pulling out of real estate development. Dutch bank ING is currently selling off the last assets of ING Real Estate Development, which for many years was the largest developer in Europe. Similarly, Rabobank is winding down MAB, a heavyweight developer both in the Netherlands and other countries in Western Europe.
Guarantee
ASR said that it will continue to bear responsibility for pending developments until a buyer for the business is found. 'Existing business relations, potential tenants and property buyers will not be adversely affected by the planned sale,' ASR said.
ASR added that its real estate development team had been 'an impressive track record in countless multidisciplinary projects and developments'. These include the IJDock mixed-use development in Amsterdam, Waddinxveen shopping centre and residential properties in Houthavens Amsterdam.
Various developments are currently under way, including the Norfolk site in Scheveningen (near The Hague), the post office at Neude in Utrecht, Catherinasteeg/Aalmarkt in Leiden, Kruisvaartkade in Utrecht, residential properties in Ede Enka and residential properties in Noordwijk.
Leidsche Rijn Centrum in Utrecht, principally retail and residential space, is the largest development under construction by ASR, in partnership with others.
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