Bouwfonds is confident it can wind down its US residential fund activity within two years while continuing to seek American equity for its core European business, EPRA's Insight Amsterdam event heard on Tuesday during a panel discussion.
Bouwfonds is confident it can wind down its US residential fund activity within two years while continuing to seek American equity for its core European business, EPRA's Insight Amsterdam event heard on Tuesday during a panel discussion.
Panellist Jaap Gillis, CEO of Bouwfonds Investment Management, was commenting on a question put by moderator Bart Gysens, executive director at Morgan Stanley, about the different macro-economic situations in the US and Europe.
Gillis: 'We decided in our new strategic plan to stop in the US; not because the market isn't good enough but because we are a small player in the US with our residential funds. We think there are better opportunities for other big funds to work for Dutch investors in the US as Bouwfonds has done in the past.'
Gillis said it was a good time to sell. 'I think the funds we are running will be disposed of in the coming two years and investing in the US will be finished for us. But we are interested in US investors for Europe,' he added.
Bouwfonds established the Bouwfonds US Residential Fund in 2006 in conjunction with Fairfield Residential, one of the largest players on the US residential property market. Together they have invested in a portfolio of 14 existing residential complexes, spread geographically and economically throughout the US. The fund has a projected total return of 10%.
