a.s.r. real estate

2018 annual reports: a.s.r. real estate funds

The 2018 annual reports of the a.s.r. real estate sector funds reflect on another successful year. Capital inflow from investors remained strong, with over €550 million of total capital raised. Improved occupancy levels have contributed positively to the direct returns of all three funds. Acquisitions (totalling €424 million) and dispositions (totalling €75 million) contributed to the funds by further strengthening their core profiles. The funds also maintained their focus on sustainability. The ASR Dutch Core Residential Fund (ASR DCRF) and the ASR Dutch Prime Retail Fund (ASR DPRF) improved their Global Real Estate Sustainability Benchmark (GRESB) scores and the ASR Dutch Mobility Office Fund (ASR DMOF) participated in the GRESB for the very first time.

At the start of 2019, a.s.r. real estate broadened its position as a full-service and innovative real estate investment manager with the inception of the ASR Dutch Science Park Fund (ASR DSPF).

Highlights 2018

ASR DCRF

ASR DMOF

ASR DPRF

Total return 

Income return

15.3% 

3.2%

12.0%

6.5%

6.6%

4.8%

Occupancy

98.5% (+0.4%)

96.7% (+3.5%)

98.6% (+1.0%)

Acquisitions

€241 m

€83 m

€100 m

Dispositions

€34 m

€0 m

€41 m

Capital raising

€239 m

€30 m

€285 m

Sustainability

GRESB score: 80 (+8)

GRESB score: 70 (first participation)

GRESB score: 72 (+6)

ASR Dutch Core Residential Fund – Highlights of 2018

  • ASR DCRF continued its strong performance, strengthening its position as one of the Netherlands’ leading core residential funds.
  • The pipeline grew to €385 million due to the addition of new projects, of which Wonderwoods in Utrecht and Grotiusplaats in The Hague are the most prominent.
  • The Fund’s occupancy rate remained high, rising to 98.5% as at 31 December 2018.
  • The Fund renovated the properties Lamérislaan in Utrecht and Staalmeesterlaan in Amsterdam, resulting in an average improvement in the energy labels of these properties from F/G to A.

ASR Dutch Mobility Office Fund – Highlights of 2018

  • 2018 was the second year in which the Fund was fully operational and the year was also characterised by a solid performance, both from an income and a capital return perspective.
  • Despite further yield compression, the income return of 6.5% was once again outstanding; this can be attributed to successful leasing activities and reductions in operating costs.
  • The Fund welcomed an Italian insurer as of July, 1st 2018, further diversifying its investor base, which includes insurance companies, banks and a pension fund from Europe and Asia.
  • The Fund acquired the Wonderwoods office building, a new development in Utrecht CBD. This project, which the architects refer to as ‘a vertical forest’, is unique in its kind. The project’s residential properties have been acquired by ASR DCRF.

ASR Dutch Prime Retail Fund – Highlights of 2018

  • ASR DPRF showed further improvement in income return, while capital growth was also solid and in line with inflation. Total return stood at 6.6%, but would have exceeded 7.0% if the acquisition costs had not been amortised immediately.
  • Disposals amounting to over €41 million, most notably the Rijswijk property, resulted in an increased allocation to the top high-street cities in the Netherlands, up from 95% in 2017 to over 96% in 2018.
  • The Fund was able to acquire the Lapis portfolio, located in top city-centre high streets and providing an attractive yield, acquired below fair value. The inclusion of this portfolio attributed to the core quality of the portfolio and benefited return targets, while three non-core properties were sold within the first six months.
  • Occupation rates improved to less than 2% vacancy (98.6% at yearend 2018). This improvement was the result of continued work on shopping centres and high-street retail, as was the realisation of some residential units above of high-street retail properties.

For more information on the a.s.r. real estate sector funds, please contact Luc Joosten.

Luc Joosten
Head of Fund Management
a.s.r. real estate
M: +31 (0)6 83 64 81 85
E: luc.joosten@asr.nl