In 2022, the real estate market was confronted with the so-called denominator effect, putting pressure on new commitments to real estate investments. The increase in interest rates and construction costs, as well as the tightening of legal and regulatory requirements related to nitrogen emissions, also put short-term pressure on the market. Bouwinvest expects market demand to remain firm in the long term, as the underlying fundamentals are still strong. This also applies to the office market and investors showed they share this confidence by committing € 196 million of capital to the Bouwinvest Dutch Office Fund in early 2023.
The Office Fund invests in future-proof office buildings, which means it can look beyond current market sentiment. In the current market, the Fund sees emerging opportunities to acquire assets in office locations that will see sustained user demand in the long term.
The Hague is one of the major Dutch cities that is expected to see a rapid stabilisation of the office market. The city is adding limited new office buildings to the current stock, while user demand is increasing for high-quality, sustainable office buildings in inner-city locations and near public transport hubs.
In late 2022, the Fund acquired the De Zeven Provinciën office building. This listed building is located on Lange Voorhout in the historical centre of The Hague, close to the Dutch Parliament building, various embassies and a wide range of stores, bars and restaurants, museums and theatres. The building also offers excellent accessibility: the Central Station is within walking distance and the slip road to the A12 motorway is just a short drive away. The building has over 5,000 square meters of office space, which is fully leased to law and notary firm BarentsKrans.
De Zeven Provinciën is a fully renovated municipal listed building and has an A+ EPC label and BREEAM-NL ‘In-Use Very Good’ certification. The building is connected to the city’s heat grid, which means it is gas-free. In line with its ESG objectives, Bouwinvest is already investigating what can be done to make the building even more sustainable, so it will be fully ‘Paris Proof’ by 2045 at the latest.
Bas Jochims, Director Dutch Office & Hotel Investments, explains, “An investment like De Zeven Provinciën enables Bouwinvest to continue with the implementation of its purpose, real value for life. Our asset management helps create sustainable, liveable, accessible urban environments and ensures stable pension payments. An increasing number of investors are supporting these goals. I am highly motivated to build on this and create value for our clients, for the communities in which we invest on our clients’ behalf and for a more sustainable world.”
A page refresh occures when a subject is selected.Skip article navigation.