Residential Fund

Highlights 2010

• Fund return increased to 2.4%
• Average occupancy rate of 94% (adjusted for initial vacancy)
• Pipeline increased with 6 complexes (257 apartments)
• Net-entry of shareholders of € 39 million

Strategy

The strategy of Altera Residential is determined by structural demographic developments, such as population aging, the growth of one and two person households and the increased demand for rental accommodation in the private, unregulated rental sector resulting from this.

• Altera Residential mainly focuses on the private (non-regulated) rental sector, in which rents develop in accordance with local market conditions. A further focus is set on the rental price segment between € 700 and € 1,000 per month. Investments in accommodations with rents above this price range, for which demand is much more cyclical and thin, is limited.
   
• The geographical policy is set according to the expected increase in demand for unregulated rental accommodation, which will occur mainly in the western urbanised part of the Netherlands and the adjacent provinces of Gelderland and North-Brabant.
   
• The residential portfolio is actively managed according to the roll-over principle, an continued process of portfolio rejuvenation by means of buying modern, up-to-date buildings with non-regulated rents and selling older buildings in the lower rental price segments. The roll-over principle is also intended to generate continued additional value growth.
   
• The tenant target groups are households with above average earnings, or wealthy households, mainly one or two person households. In line with the demand profile of these target groups, the portfolio strategy is mainly aimed at apartments (75%) in (sub)urban areas, to a lesser extent at single-family homes (25%) and mainly at accommodations built in the 1990s or thereafter.