Now is the time to invest in Dutch offices, says OVG

Now is a good time to step in Dutch offices, according to Jeppe de Boer, chief investment officer of Rotterdam-based office developer OVG told PropertyEU in an interview. 'The spread between current initial yields and the risk-free rate - the interest rate paid for state bonds - is nowhere as wide as in the Netherlands. This can generate a total return of 10%.'

OVG aims to set up funds to raise money for new office developments that have already been developed and completed. OVG has a pipeline of some EUR 500 mln in office developments which could be included as turnkey projects in the investment funds. The company aims to retain a stake in the funds in a model reminiscent of the strategy of major international developers such as Prologis, Goodman, Hines and Tishman Speyer.

In July, OVG announced it had acquired an office building in Amsterdam from Bouwinvest Dutch Institutional Office Fund for an undisclosed amount. At the time, the company said the purchase of the asset, which provides 60,000 m² of space, 'represents a significant move in OVG's strategy to invest in existing buildings and redevelopments in the Netherlands.'

De Boer joined OVG earlier this year in a move aimed at increasing OVG’s access to the capital markets to secure funds for the company’s international growth strategy. De Boer has broad experience in European property finance. He previously worked as head of real estate banking with Renaissance Capital in Moscow. Prior to this he was executive director real estate advisory at Goldman Sachs and vice-president at ABN Amro Bank.

The full interview with De Boer will appear in the October issue of PropertyEU.