APG scales existing real estate investments

Published on: 13 May 2016

Patrick Kanters (director of real estate and infrastructure) indicates in an interview that APG is in the spacious situation that the company does not necessarily have to invest in property in which it does not feel completely comfortable.

 

In an interview with real estate professor Piet Eichholtz Kanters said that new investments very likely to be done by extending existing holdings and partnerships. "We make no new investments, but it is unlikely that we are going to an auction for a first class shopping center," he said. 'We probably already have in our portfolio."

 

Instead, the asset manager tries to scale up existing investments and create new platforms, says Kanters. As an example he gave importance that APG has taken citizenM hotel operator, which started in 2008 and now has under construction three thousand hotel rooms.

 

APG is ready to start "small investment" of € 75 million to € 100 million, but only if the interest can be extended and the APG optimal size of € 300 million to reach € 900 million.

 

According Kanters takes the asset generally accounted for less than 50% and then works together with two or three other parties. APG is committed to investing in funds or through joint ventures with both regular customers and new participants.

 

Kanters later explained that APG has sold many of its non-core assets, but that the company has had to focus on a net basis as money. "In restructuring we are keen to focus on the best assets in the best locations in the main cities.

 

APG favors an integrated approach, where the company is also willing to take development risk, says Kanters. He said, careful not to be afraid to work with developers, "while working for their own operations and their own money at stake."