AMVEST RESIDENTIAL CORE FUND

Transcription

1 AMVEST RESIDENTIAL CORE FUND

2 FUND FACT SHEET AMVEST RESIDENTIAL CORE FUND Almere FOCUS AREAS Groningen The Fund has selected four focus areas that score well above average on economic growth, the development of the supply / demand ratio, demographic developments and the quality of the residential environment. These areas are expected to see a continuously higher value growth potential than other areas in the Netherlands. The focus areas are: (1) the northern wing of the Randstad (including Amsterdam, Utrecht and Almere), (2) the southern wing of the Randstad (including Rotterdam and The Hague), (3) a dense southern part of the Netherlands (including Eindhoven, Tilburg and Breda), (4) certain specific cities in the north and east (including Groningen and the Arnhem-Nijmegen city region). Haarlem Amsterdam Almere Lelystad Kampen Zwolle FACTS & FIGURES AS PER 1 JANUARY 2013 Den Haag Utrecht Arnhem SIZE Portfolio size 1.17 billion Rotterdam Nijmegen Number of properties 109 (6,113 residential units) Breda Tilburg Eindhoven Amvest Residential Core Fund invests exclusively in these focus area s. TERM First closing date 17 January 2012 Investment period 10 years as from first closing date Wind down period 3 years Liquidity Restricted term of the Fund plus conditional redemption right STRUCTURE Fund for joint account Tax transparent for Dutch tax purposes TARGET RETURNS IRR 7% Dividend return 4% Leverage as at 31 December % Maximum leverage 30.0% TER as at 31 December %

3 Utrecht THE attractiveness OF MID-PRICED RENTAL HOMES The demand for mid-priced rental homes is high and is expected to remain high as a result of current housing market conditions. The intended measures of new Dutch cabinet will contribute to the attractive position of a mid-priced rental home in the Dutch housing market. Housing market conditions Since 2008, the effects of the international credit crisis are visible on the housing market. The number of homes for sale has risen, sales numbers of existing and new homes have fallen, as well as sales prices, the number of completions and the number of planning permissions for new homes granted. Various forecasts for 2013 indicate that the number of transactions of owner-occupied homes will drop even further, as well as house prices and the completion of new homes. The fundamentals of the Dutch housing market are nevertheless strong. Projections until 2040 show that the number of households will increase annually. Besides, new homes are needed to replace homes that are withdrawn from the housing stock because of, for example, demolition. There will be a structural increase in demand for new homes until 2040 (quantitative and qualitative), especially in the focus areas of the Fund. In the coalition agreement of the new Dutch cabinet, there are different measures that will restructure the Dutch residential market. Mortgage interest relief will continue to exist, encouraging people to buy homes of their own, but will be reduced as from Besides, annual repayments of the principal is a precondition for mortgage interest relief for new mortgages from These measures will make an owner-occupied home more expensive, improving the position of a mid-priced rental home. The social sector will be forced to focus on households with lower income levels. Tenants with higher incomes living in social homes will be confronted with an annual additional allowed rent increase compared to households with lower income levels. As a result, mid-priced rental homes become more attractive for households with higher income levels. Prospects for mid-priced rental homes are favourable Despite market headwinds the rental housing market (market sector) remains very strong. The average monthly rent of rental homes in the market sector has increased during Investors have a relatively solid protection against inflation as inflation is normally included in the annual rent increase. The figure shows that the actual rent increase in the Amvest-portfolio was higher than inflation in the period The competitiveness of a rental home in the market sector will further improve compared to an owner-occupied home or a rental home in the social sector. In combination with the expected increase in demand for new homes in the focus areas of the Fund, this will result in a vast and increasing demand for mid-priced rental homes Indices, 1995 = 100 Inflation Amvest: Actual rent increase

4 FUND FACT SHEET AMVEST RESIDENTIAL CORE FUND Berkel en Rodenrijs Den Haag INVESTMENT OBJECTIVES The Fund s policy is to realize an attractive, stable cash yield available for distribution and long term value growth for its investors by investing in a portfolio of relatively young residential properties in the chosen focus areas. The Fund aims to provide its investors with a net IRR of approximately 7% per year including a cash yield of approximately 4% per year, derived from rental income, divestment profits and appreciation. In line with the low-risk strategy the Fund is lowly leveraged and makes use of excellent financing facilities. KEY FUND CHARACTERISTICS As a result of several distinctive characteristics of the portfolio, the Fund has a unique position in the investment market. Together, these characteristics offer investors an excellent risk /return profile and a stable dividend yield. PORTFOLIO STRATEGY The portfolio strategy is based on several key pillars. All properties are located in the Amvest focus areas, which were selected in conjunction with Amvest s research department. The properties are positioned in the sought-after mid-priced rental segment (rents from 600 euro to 1,200 euro per month). This segment offers investors the best prospect of a steady cash flow. With an average age of 8 years, the portfolio is very young. This is relevant as regards keeping the operating and renovation costs low. Finally, a dynamic portfolio policy - the Fund aims at an annual rejuvenation of 5% - ensures that the quality of the portfolio remains at a high level. SUSTAINABILITY Sustainability is a prime focus for Amvest and the Fund. To the Fund sustainability is more than just energy saving or limiting CO2 emissions. It should also be applicable to good operations, reducing the overall environmental burden, raising quality of use and health aspects in management of the properties. A few examples of the sustainability policy are: - all properties in the portfolio are highly energy efficient (energy label on average A) - all timber used in new residential properties should be from sustainable resources - all properties in the portfolio should be sustainable in accordance with the qualifications of IVBN (Association of Institutional Property Investors in the Netherlands). Stable cash return and good inflation hedge A stable rental sector and a favourable regulatory environment A high quality portfolio with specific focus on assets in areas with the highest economic growth, wealth and population density Average portfolio age of 8 years Truly sustainable portfolio with an on average A energy label Highly experienced in-house fund management team All-round residential real estate company Two committed cornerstone investors energy label on average A

5 FUND FACT SHEET AMVEST RESIDENTIAL CORE FUND Amsterdam Amvest is a leading fund manager and developer of residential real estate in the Dutch property market. The core strength of our business is our thorough knowledge of the Dutch housing market. This pillar lies at the decision of Amvest s launching investors, AEGON and PfZW, to maintain a substantial interest in Amvest Vastgoed BV and the residential real estate funds managed by Amvest. We are a lean & mean organisation combining investment management and property development and we are active throughout the value chain. Our experience as a developer makes Amvest Development an interesting partner for public authorities and public-private partnerships. It also helps us to create the optimal homes for our tenants. The Fund has an exclusive Right of First Refusal with Amvest Development, safeguarding for the Fund a long term, high quality pipeline that is aligned with the Fund s strategy.

6 contact information Amvest Residential Core Fund De entree BH Amsterdam The Netherlands T: E: Fund Director Wim Wensing T: E: JANUARY 2013 This document and the information contained herein is presented as preliminary information in connection with the Amvest Residential Core Fund ( the Fund ). In the case of any discrepancy between the contents of this document and the private placement memorandum of the Fund, the private placement memorandum (as applicable) shall prevail. No offer is being made by the manager of the Fund or any other entity by circulation of this document. The information is confidential and may not be copied, reproduced, distributed or passed to any other person without our prior written consent. Investors are not to construe the contents of this document or any prior or subsequent communication as legal, tax, or investment advice. Investors should bear in mind that past performance is not necessarily indicative of future performance and there can be no assurance that the Fund will achieve comparable results or that investors will receive a return on their capital. Any forward looking statements (including, without limitation, projections of future earnings or value) contained herein are subject to known and unknown risks, uncertainties and other factors which may cause actual results to be materially different from those contemplated by such statements. No representation is made or assurance given that such statements, views, projections or forecasts are correct. No representation, warranty of the information in this document by the manager of the Fund. The full documentation is offered via a private placement memorandum, which is available at the manager s office. For distributions outside the Netherlands strict selling restrictions may be applicable.