NETHERLANDS - Dutch pension scheme ABP has hired Morgan Stanley and Kempen & Co as advisers to review the future options for KFN, its offices fund.
Michel Meijs, from ABP, said the advisers had been hired concerning a decrease of interest in the fund. This has also been done over the last few years with the interest in the other ABP real estate funds, said Meijs.
He noted: “Various options will be considered, which will enable ABP to further diversify its portfolio.”
Explaining the background to the development, Meijs said that In the early nineties ABP transferred its retail, housing and office investments to three real estate funds, with KFN being the offices fund.
Meijs remarked: “The reason why ABP chose to put the direct real estate investments at arms length was that the management of direct real estate was not considered a core activity of the pension fund. ABP changed its policy to investing in real estate indirectly only, through listed and unlisted real estate funds.
“At that time ABP said that it intended to decrease its interest in the funds to a minority stake after the funds had built up track record and if attractive opportunities would arise. This also matched ABP’s policy to further internationally diversify its portfolio. In both the retail and housing fund the decrease of ABP’s interest to a minority stake has been realised in the previous years.”
In a separate development, at the end of July this year, Global Pensions reported that ABP’s chief investment officer Tom Steenkamp signalled the pension giant may reduce the stake of oil assets in its commodities portfolio.
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