NETHERLANDS - Cordares, the €23bn Dutch pension provider, is aiming to set up international property pooled funds with other pension providers. The unique system would use the local expertise of various national pension providers and enable each member to diversify their risk geographically.
In an exclusive interview with Global Pensions, Joep Schouten, chairman of the board at Cordares, said the organisation would target the German, Belgium and Danish markets. This is in addition to Cordares’ recent foray into the Italian market where it aims to provide asset management and consultancy services to pension funds, as reported by Global Pensions in September.
Schouten said: “When you invest in direct real estate it is better to have an international portfolio. But we are not always used to this in Holland because we invest mainly in Dutch real estate. If you want to spread your risk, it is better to do that internationally. To do that you need to have local knowledge.”
As it was very difficult to have offices in every country, he said it would be better if local pension providers bought and maintained properties. “When a Danish pension fund buys local real estate, it will buy the best deals on the market and maintain it locally, just as we do in Holland,” he explained.
When questioned about how close the deal was, Schouten said: “We are currently in exploratory talks with Danish pension funds about this possibility.”
He added: “It is a way for pension providers to learn from each other across borders.”
Cordares already pools assets in fixed income and equities.
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