In 2011, sustainable real estate development activities were given a new home in a joint venture with OVG, a major Dutch real estate developer, called JOIN. Triodos Investment Management now only manages the Triodos Vastgoedfonds. Triodos Real Estate Investment Management is the manager of the TNT CV.
Triodos Bank’s involvement in the real estate sector is built on a unique, full spectrum vision on sustainability, based on the four P’s: People, Planet, Profit and Project.
Triodos Vastgoedfonds (The Netherlands)
Triodos Vastgoedfonds did not experience the full brunt of the crisis in the Dutch Real Estate Market until the very end of 2011.
The Dutch market faces a large vacancy rate of 15% . This has a negative impact on the valuation of the Triodos Vastgoedfonds portfolio even though the fund has only a 2% vacancy rate. Rental income and cash flow is stable as average tenor of the rental contracts is almost 7 years.
The direct return of the fund was 6.2% and the indirect return was –10.7%. The share price return was –3.1%.
The investment portfolio increased from EUR 77,7 to EUR 87,2 million, as the fund acquired 3 buildings. Outstanding shares decreased by 9.8%.
The fund had a high exposure in the Dutch real estate market due to publicity generated by the GasTerra transaction. The fund acquired a vacant building refurbish it and rent it out to GasTerra. For this transaction, the fund developed a so called green lease contract.
Real Estate Prospects for 2012
The real estate market is expected to remain under pressure in 2012. It may stabilise or slightly improve in the second half of the year.
Despite these market conditions, Triodos Investment Management expects limited growth of Triodos Vastgoedfonds, because of the chosen strategy to focus on sustainable buildings near transportation hubs that are considered attractive office locations.