Featured statistic: EUR 15.3 billion

News
Date 12 January 2010

Dutch pension funds held EUR 15.3 billion in direct investments in real estate at the end of the third quarter of 2009, representing 2.4% of their total investments. Dutch real estate accounts for as much as 98.5% (upwards of EUR 15 billion) of these real estate investments. The foreign share is largely made up of US real estate.

Pension funds’ real estate portfolio
From 2006 up to the third quarter of 2007, the volume of the investments in real estate expanded by EUR 3.2 billion. The rise could be attributed to the growth in value of the real estate by close on EUR 5 billion. Net sales in the same period came to EUR 1.7 billion.

 

This trend reversed as of the third quarter of 2007 and the total volume of real estate declined, reflecting both sales and losses in value. Investments in housing were disposed of for just short of EUR 1 billion as of the fourth quarter of 2007 and a loss in value of EUR 1.3 billion occurred.

From the fourth quarter of 2007 through to the third quarter of 2009, pension funds made net purchases of office buildings to the value of EUR 0.6 billion; the capital loss on office premises worked out at EUR 1.8 billion. Owing to this development, the ratio between investment in housing and that in offices changed from 60% - 40% at the start of 2006 to 54% - 46% at the end of the third quarter of 2009. The volume of the pension funds’ total real estate portfolio eventually fell by EUR 3.5 billion to EUR 15.3 billion.