10. Februar 2010 
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High investor demand for Bouwfonds European Residential Fund
In the last few months, the Bouwfonds European Residential Fund has experienced soaring investor interest from institutional investors, with total inflows far exceeding expectations. Set up just prior to the financial crisis, the fund offers institutional investors the attractive combination of a low risk profile and steady direct returns.
In response to the large amount of new capital, the fund had already introduced a waiting list for amounts above €5 million, and increased its acquisition pipeline. Several high quality real estate investments were recently completed in Germany, Norway, and Sweden, and further acquisitions are in process in Germany, France, and the Netherlands.
Despite these measures, strong capital inflows below the €5 million hurdle in the last few weeks and days have led to a critical excess liquidity in the fund. In order to safeguard the interest of current investors and protect fund performance, the fund management consequently decided to temporarily suspend new inflows and introduce a reservation system. The objective is to decrease liquidity levels to 10%, and link future inflows to carefully selected new acquisitions.
Primarily targeted towards German institutional investors and high net worth individuals, the fund’s target Gross Asset Value (GAV) is €1-1.5 billion in five years. The portfolio focuses on core middle-class family apartments and houses in city centre locations, residential suburbs, and satellite cities of major agglomerations. Acquisitions focus on existing properties and may also include forward acquisitions and refurbishment projects.
In response to the large amount of new capital, the fund had already introduced a waiting list for amounts above €5 million, and increased its acquisition pipeline. Several high quality real estate investments were recently completed in Germany, Norway, and Sweden, and further acquisitions are in process in Germany, France, and the Netherlands.
Despite these measures, strong capital inflows below the €5 million hurdle in the last few weeks and days have led to a critical excess liquidity in the fund. In order to safeguard the interest of current investors and protect fund performance, the fund management consequently decided to temporarily suspend new inflows and introduce a reservation system. The objective is to decrease liquidity levels to 10%, and link future inflows to carefully selected new acquisitions.
Primarily targeted towards German institutional investors and high net worth individuals, the fund’s target Gross Asset Value (GAV) is €1-1.5 billion in five years. The portfolio focuses on core middle-class family apartments and houses in city centre locations, residential suburbs, and satellite cities of major agglomerations. Acquisitions focus on existing properties and may also include forward acquisitions and refurbishment projects.
