Amvest Residential Core Fund

The Amvest Residential Core Fund is our flagship. The fund focuses on sustainable single-person homes and apartments in the medium-priced sector in economically strong regions in the Netherlands, mostly in and around the Randstad area and the Brabant metropolitan area. The average age of the portfolio properties is just nine years.

Regional focus, AFFORDABILITY

The Amvest Residential Core Fund invests in medium priced unregulated rental homes in the Netherlands (EUR 721 – 1,500 per month bandwidth depending on the region). Homes that are keenly sought after by Dutch households. The fund has a clear strategy with a regional focus. The portfolio focuses strongly on the four large cities (Amsterdam, Rotterdam, The Hague and Utrecht) as swell as other towns and cities in the ‘Central Circle’. The strong cities outside this area, such as Groningen, Zwolle and Maastricht, are also of interest. These are economically attractive areas where people want to live.

The fund endeavours to secure an acceptable return with a conservative use of loan capital. The dynamic portfolio policy ensures high quality and an energy efficient portfolio. The result is that operational expenses are relatively low. The Amvest Residential Core Fund is open to new investors.

Sustainability ‘green star’

The Amvest Residential Core Fund pursues an active ESG (Environmental, Social and Governance) policy. Sustainability in the broad sense. We have established concrete ESG objectives on the back of discussions with tenants, investors, property managers, developers and our staff. These and other non-financial criteria form fixed elements of our portfolio management. The fund achieved a score of 5 stars out of 5 in the Global Real Estate Sustainability Benchmark (GRESB) in 2020.

Sustainable Finance Disclosure Regulation (SFDR)

On the basis of the SFDR, financial market participants are required to indicate how they handle sustainability risks and to detail the consequences of this approach (for more details, see Investment Management). In addition, the regulation contains transparency requirements at fund level.

The regulation distinguishes between:

  • funds that are not promoted as sustainable (grey);
  • funds that promote environmental or societal characteristics (light-green);
  • funds with sustainable investments as their objective (dark-green).

The Amvest Residential Core Fund qualifies as a light-green fund which promotes the use of clean energy, energy efficiency and affordable rental housing as characteristics.

A materiality analysis was conducted in 2018 to identify the key financial and non-financial themes for the fund. This was done by distributing an extensive survey – a peer analysis based on various standards (GRI, GRESB, INREV) – to all of the fund’s major stakeholders.

For 2021, a selection of fifteen factors emerged as material to the fund. These factors were grouped into five main themes:

  • economic aspects;
  • living comfort;
  • internal operations;
  • environmental aspects;
  • living environment.

These themes are integrated into the fund’s strategy and the individual aspects for each theme are reflected in Key Performance Indicators (KPIs). These KPIs are defined and measured at fund level and at individual property level (if applicable).  A target is set for each KPI that is measured and reported. The KPIs and targets are evaluated annually and adjusted if necessary.

For SFDR purposes, the fund promotes clean energy, energy efficiency and affordable rental housing. KPIs for these themes include environmental aspects (‘energy consumption/energy savings’, ‘CO2 emissions/climate change’ and ‘clean energy generation’) and economic aspects (‘provision of sufficient high-quality affordable private sector rental housing’).

KPIs defined and measured for these themes are:

  • determining customer satisfaction and comparing it with our peers (benchmarking);
  • determining the GRESB score and comparing it with our peers (benchmarking);
  • measuring energy consumption per complex;
  • measuring CO2 emissions per complex;
  • reducing CO2 emissions and making the portfolio more sustainable by installing solar panels (clean energy).

For more information on the KPIs defined, the results of the past year, the data sources and screening criteria, please refer to the Annual Sustainability Report of the Amvest Residential Core Fund.

High value pipeline

Amvest is not just a fund manager. We also develop homes in the medium-priced sector. This combination of development and fund management is unique in the Netherlands. The Amvest Residential Core Fund has a right of first refusal to the rental properties developed Amvest. This ensures that the Fund has a long-term, high value pipeline of forthcoming property, in line with the Fund’s investment strategy. The Fund also buys homes from other developers.

Dedicated fund teams

A leading fund manager and an experienced and dedicated team go hand-in-hand. Under the responsibility of the Fund’s board, each Fund at Amvest is directed by a driven portfolio manager, supported by a team of asset managers and technical managers. They maintain close contact with contractors, real estate managers and tenants via the Amvest Tenant Platform and a range of tenant associations. The team is supported by a specialised and efficient back office.

CONTACT

Features of the Fund

  • General account fund
  • Open-ended, current term ending in 2026
  • Core investment fund
  • Low risk and stable dividend
  • Open to new investors
  • Right of first refusal for rental homes developed by Amvest
  • Number of homes: 10,001 / EUR 3 billion (close of 2020, Q1)
  • Committed pipeline: 3,177 homes / EUR 956 million (close of 2018)
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