Triodos Bank’s involvement in the real estate sector is built on a unique vision on sustainability, based on the ‘Triodos Test For Sustainable Real Estate’ which is based on four P’s: People, Planet, Profit and Project.
Triodos Investment Management manages the Triodos Vastgoedfonds. Triodos Real Estate Investment Management manages Green Offices I CV – an investment vehicle that itself manages Dutch-based global courier TNT’s sustainable headquarters building.
Total volume under management in Real Estate was EUR 117 million at the end of the year (2012: 122 million).
The broad real-estate crisis impacted Triodos Vastgoedfonds in 2013, and in particular its investments in commercial offices. The fund is well positioned compared to other property investment funds with low vacancy rates, high average tenures of rental contracts and a focus on investing in high quality buildings. The fund regularly receives recognition for the quality of the portfolio and its vision on real estate. In 2013 it won the prestigious Golden Frog award for its outstanding and sustainable work on refurbishing existing offices.
The investment portfolio decreased from EUR 75.9 to EUR 71.0 million in 2013 because of lower valuations of the assets in its portfolio.
In 2013, the fund restructured from an open-end fund to a closed fund. Trading of shares now takes place in the auction-segment of the Amsterdam Stock Exchange. Shareholders also agreed to a statutory change, allowing the lowering of the nominal value of the fund.
Case Study: GasTerra
In 2010, Triodos Vastgoedfonds acquired a vacant building next to the Groningen railway station, in the North of The Netherlands. At the same time it signed a Green Lease Contract with future tenant of the building, GasTerra. The partners agreed that the building would be refurbished to become an extremely energy efficient and sustainable office, with an improved energy label from G to A+, with finance coming from a Green Lease Contract. In this contract, both tenant and landlord agree that future savings from lower energy costs will be used to create the budget for the refurbishment. In April 2013 the building was opened by the then HRH Prince Willem Alexander of The Netherlands.
Triodos Investment Management will continue to investigate the best strategy to maintain the quality of the fund in the light of challenging market conditions.
The volume of the fund’s assets under management is expected to remain stable in 2014.
Due to the restructuring of the fund, the share price is now determined by supply and demand.