Dutch pension funds boost real estate holdings

The Netherlands' largest pension fund ABP had a real estate investment portfolio totalling EUR 28.8 bn worldwide at end-2011, a rise of 12% compared to the previous year. ABP's real estate portfolio is managed by asset manager APG.

In Europe, APG reported its total AUM slipped 4% to EUR 19.2 bn.

Other major Dutch pension funds also boosted their property holdings in 2011. The pension fund for the building sector BPF posted a 6% increase while the pension funds for the metal workers industry PME and PMT booked rises of 15% and 4% respectively. The second biggest pension fund in the Netherlands, Pensioen Zorg en Welzijn, which is administrated by PGGM, saw its property portfolio plunge 16% to EUR 11.5 bn.

The top 10 Dutch pension funds booked returns varying from 1.2% for ABP to 8.2% for Pensioenfonds ING.

The findings are based on the annual top investors survey of PropertyEU and its sister publication PropertyNL. With assets under management of EUR 7.8 bn worldwide, ING Group is the biggest real estate investor in the Dutch banking and insurance sector. Peer ASR has EUR 3.8 bn tied up in real estate while Aegon has EUR 2.8 bn.

Redevco is the leading investor in the private equity sector with total AUM of EUR 7.4 bn compared to EUR 7.3 bn a year ago. Green Real Estate moved up to 4th place in the top 10 ranking of private investors following an increase of 63% to EUR 1.3 bn. PingProperties by contrast saw its property portfolio decline to EUR 860 mln from EUR 1 bn a year earlier.

Unibail-Rodamco is the only listed company whose market capitalisation is now higher than the value of its property holdings. The portfolio increased to EUR 25.9 bn, a rise of 4% year-on-year. Corio saw its portfolio rise 5% to EUR 7.3 bn.

The full story and ranking of top investors in Europe will be published in the September issue of PropertyEU. Click on the following link to subscribe: