Summary
The Pool has a strong focus on sustainable core strategies, meant to deliver income and growth from stabilized institutional-quality real estate assets. Investment decisions will be based on fundamental bottom up research which is quantitative and qualitative in nature whilst taking top down considerations into account. Investments can be made through companies, funds, joint ventures and co-investments[1].
The Pool invests in both listed and private real estate, as both types fundamentally exhibit the same risk-return characteristics. Irrespectively, a general preference for private RE investments exists given the larger degree of control over such investments, greater opportunity set and lower return volatility. The weighting of private real estate investments is targeted between 75% - 100% of the Net Asset Value at Pool level, whilst this range is 0% - 25% for listed real estate investments.
In order to provide broad and diversified exposure, the Pool targets the following regional weightings:
- Europe (ex NL): 32.5% (25% - 40%)
- Americas: 37.5% (30% - 45%)
- Asia Pacific 30% (22.5% - 37.5%), of which:
- Japan 0% - 5% points
- Australia and New Zealand 0% - 10% points
Furthermore, distinction is being made between core, value-add and opportunistic strategies, which are targeted at 70-100% for core, 0-20% for value-add and 0-15% for opportunistic investments of the Net Asset Value
[1] Commitments to fund-of-funds are not allowed