Dutch realty investor Bouwinvest infuses $100m in Asia-Pacific office portfolio

Pedestrians walk past an office tower in the central business district in Singapore, on Friday, April 27, 2018. Photographer: Paul Miller/Bloomberg

Dutch institutional investment manager Bouwinvest has announced a $100 million investment into a portfolio of offices in metropolitan areas in Asia-Pacific.

The transaction has been made as part of its international mandate for the region from bpfBOUW, the Dutch construction workers pension fund, the firm said in a statement.

The deal, which comprises investments in office buildings in Tokyo, Osaka, Hong Kong, Seoul and Auckland, was made in partnership with other institutional investors and will be managed by Hong Kong-based investment manager PAG Real Estate.

Together, the parties have invested nearly $700 million in 26 office buildings and a comparable volume is set to be invested in more assets in the coming years.

The largest investment in the portfolio is the International Trade Tower office building in Hong Kong, Kowloon East, a high-quality office building with solid rental potential.

“This investment fits our Asia-Pacific portfolio really well and is the latest step in our ambition to increase our exposure to offices and create a well-diversified international portfolio with a good sector mix. The investment strategy is focused on liquid markets and office buildings that generate an attractive cashflow with potential for growth,” said Bouwinvest Asia-Pacific investments director Tjarko Edzes.

With a global portfolio amounting to €11.3 billion ($12.6 billion), Bouwinvest claims to be one of the biggest institutional investors in the Netherlands.

The firm recently opened a regional office in Sydney to boost its overseas investment. Edzes said the firm aims to grow its international investments to 40% of its total portfolio in the next few years.

Last year, Bouwinvest was a cornerstone investor of Japanese multifamily vehicle, ERES APAC III, which looks to eventually invest up to $1 billion in the Tokyo multi-family space.