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Real estate

General

VP Capital prefers to invest in real estate in the Netherlands and Belgium. Our existing portfolio consists of sustainable office buildings, logistics and light industrial, supermarkets, healthcare real estate and social and affordable housing.

For new investment opportunities, the following criteria will be considered:

  • Property should have sustainable aspects, including use of materials.
  • Property should have at least energy label A or will get to this level through modifications.
  • In the case of new construction: sustainable buildings (energy efficient, sustainable materials, no gas connection, 0 on the meter etc.), preferably BREEAM, WELL and/or other labels.
  • Contribution to solutions for the key challenges in the domain

Vision

The real estate sector is a large contributor to the global GHG-emissions. Along with a decreasing affordability of urban real estate and an increase in material use, the sector faces many challenges.

The following key challenges are defined by Sinzer:

Ambition

In the real estate sector, VP Capital's ambition is to invest in these sustainable solutions:

  • Developers of real estate projects that adopt circular design practices.
  • Invest in companies that realize the sustainable transformation of already existing buildings.
  • Companies that focus on energy efficiency in their building strategies.
  • Investing in start-ups in the real estate sector for smart solutions.

We also have the ambition to make donations that contribute to the following solutions:

  • NGOs addressing the challenges concerned with homelessness and housing possibilities in general.
  • Organisations engaging in city planning, seeking to provide the required social housing or other social endeavors.
  • Initiatives that promote a circular way of building and provide alternative opportunities for the use of materials in the end-phase of conventional linear building design.

Domain report Real estate

For each of our investment domains, a more detailed report on key challenges, investable solutions and investment criteria has been made.
View the report of our Real Estate investment domain here.

Sustainable progress within the real estate domain

With VP Capital, we want to contribute to sustainable progress. We screen our investment portfolio in terms of ESG and Impact. Read more about this in our Progress Report via the button below.

Progress Report

Read more about the different challenges below:

Contribution to climate change
The real estate sector is responsible for almost 40% of the global energy and process-related emissions. The real estate sector is a traditionally conservative sector and currently lags behind when compared to the efforts of other sectors to mitigate climate change and move towards circular economy. In order to mitigate the effects of climate change and for the Paris Agreement to succeed, the contribution from the real estate sector is essential.

Shortage of affordable housing
In some metropolitan areas the supply of affordable housing is under pressure. After the financial crisis the real estate market took a long time to recover, which halter the construction of new housing. This is accompanied by low interest rates, which make real estate a lucrative investment option for investors. Shortage of affordable housing affects the livability of cities in two ways. First, high prices of housing leads to a more restricted living space. Second, this restricted living space leads a poor quality of life due to overcrowding, pollution or smog problems.

Waste and linearity of the sector
The real estate sector is a large consumer of materials. Rapid urbanization puts stress on the demand for such materials. In order to combat material scarcity a transition towards a circular economy is necessary. This requires a new approach and new business models. It will require a review of upstream and downstream impacts. Circular business models have the potential to deliver improved financial performance. However, investor and construction client communities must lead the adoption of circular principles within their projects.

Keeping existing real estate up to date
Changes in demographics and society require existing buildings to be updated, both in terms of sustainability (already covered) but also user needs. The COVID-19 pandemic has accelerated the shift of employees working from home. The role of offices will change, as will the demands from tenants. As for retail, online retail is expected to accelerate even further, while the desire for physical retail buildings will remain in some form. Aging populations and groups with special needs require adaptations to existing structures.

Occupants’ health and well-being
Smart buildings will become the norm within real estate. The high prices of real estate and rapid urbanization will put a great pressure on the livability of cities. The pandemic has further accelerated the transition of a focus towards occupants’ health and well-being. In the coming years the real estate sector will have to improve the standard of living and the quality of life of its inhabitants through the developments of smart buildings.

Portfolio companies

Some examples of companies in our current portfolio within the real estate domain:

Interested in a possible collaboration?

View our specific investment criteria and contact us if your project meets these requirements.

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