"We need to invest in the trend lines, not the headlines," says Robert-Jan Foortse, APG's Head of European Property Investments, in the People Property Place Podcast. "We need to invest in those sectors that will have tailwinds for the longer term. Demographics, urbanization, technology, the emerging middle class and the experience economy: those are the trends that will endure."
In the conversation, Foortse first shares some insights into his (early) career before explaining APG's approach to real estate investing. In doing so he makes a comparison to horse racing. "At APG we are the ones selecting the sectors, the horses if you will. When you commit to a blind-pool opportunistic fund, you're effectively backing the jockey. We think we are better at picking horses than the jockey."
APG views property as a local business, which is why Foortse and his team seek partnerships with the strongest local operators. "We like it to be a partnership. We talk, we give and take, and both parties should benefit."
Looking ahead, Foortse highlights demographic change as one of the most compelling long-term themes. "The aging population is growing faster than international travel, which is one of the other strong mega trends. Our challenge is how we can invest (in scale) in that megatrend in Europe. If we can crack the senior living part, I think that's a phenomenal opportunity with all the demand that's coming to the market." He argues that meeting this challenge could generate both attractive financial returns and broader societal benefits.
At the same time, he acknowledges that uncertainty remains a constant in the market. "Looking forward, you never have full clarity. Every year we say 'unprecedented', and my sense is that for the next four or five years, every year we will have another unprecedented event."