Sustainable Real Estate
Triodos Bank’s involvement in the real estate sector is built on a unique vision on sustainability, based on the ‘Triodos Test For Sustainable Real Estate’ which is based on four P’s: People, Planet, Profit and Project.
Triodos Investment Management B.V. manages Triodos Vastgoedfonds N.V. Triodos Real Estate Investment Management B.V. managed Green Offices I CV – an investment vehicle that itself managed Dutch-based global courier TNT’s sustainable headquarters building. Triodos Real Estate Investment Management B.V. had outsourced several operational tasks to Triodos Investment Management B.V. These activities were ended in the first quarter of 2014 due to the sale of the TNT building.
The market circumstances for real estate appear to be improving and revaluations are becoming less severe than in previous years. Triodos Vastgoedfonds is well positioned compared to other property investment funds because of low vacancy rates, high average tenures of rental contracts and a focus on investing in high quality buildings. The fund regularly receives recognition for the quality of the portfolio and its vision on real estate. In 2014 it was one of the three nominees for the Dutch FGH real estate award.
The investment portfolio decreased from EUR 71.0 to EUR 69.7 million in 2014 because of limited lower valuations of the assets in its portfolio.
In 2014, shareholders agreed to a statutory change, allowing the lowering of the nominal value of the fund. By doing so the fund was able to realise two distributions to shareholders.
Case Study: GasTerra
In 2010, Triodos Vastgoedfonds acquired a vacant building next to the Groningen railway station, in the North of The Netherlands. At the same time it signed a Green Lease Contract with future tenant of the building, GasTerra. The partners agreed that the building would be refurbished to become extremely energy efficient and sustainable office, with an improved energy label from G to A+, with finance coming from a Green Lease Contract. In this contract, both tenant and landlord agree that future savings from lower energy costs will be used to create the budget for the refurbishment. In April 2013 the building was opened by the then HRH Prince Willem Alexander of The Netherlands. In 2014 the building was nominated for the prestigious FGH real estate award.
Triodos Investment Management will continue to investigate the best strategy to maintain the quality of the fund in the light of challenging market conditions. At the same time options to grow the assets under management are being investigated.