After five years of growth in financing, developing and investing in sustainably built or maintained real estate, Triodos Investment Management decided to focus only on finance and investment in 2010. Sustainable real estate activities were given a new home in an innovative joint-venture called JOIN with OVG, a major Dutch real estate developer. Triodos Bank’s involvement in the real estate sector is built on a unique, full spectrum vision on sustainability, based on 4 P’s: People, Planet, Profit and Project. Triodos Investment Management’s activities continue to benefit from a growing understanding in broader society of the need for urgent action to ensure a clean and healthy living environment.
Triodos Vastgoedfonds (The Netherlands)
The slow down of the Dutch real estate market only had a limited impact on Triodos Vastgoedfonds. Because there are a lot of vacancies in the rental market, prices are falling. Since access to finance for real estate transactions is limited, property prices for offices remain under pressure. The fund partly mitigates these risks through long-term rental contracts with financially sound lessees and an extremely low vacancy rate of 1.1%. The direct return of the fund was 6.3% and the indirect return was -3.5%. The share price return was 2.2%. The investment portfolio decreased to EUR 77.7 million, as the fund sold three buildings with a total value of EUR 8.9 million, and acquired one building for EUR 5.9 million. Despite the market sentiment, the fund increased its outstanding shares by 25.7%.
Real estate development (The Netherlands)
In 2010 Triodos Investment Management’s sustainable real estate development activities were given a new home in a joint venture between real estate developer OVG and Triodos Bank. This new business will continue to progress the projects Triodos Real Estate Development had started. Triodos Bank itself is now more at arm’s length involved in these activities.
Real Estate Prospects for 2011
The real estate market is expected to remain under pressure in 2011. 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.