Industrial Fund

Highlights 2010

• Fund return increased to 1.8%
• Average occupancy rate of 89%
• Net-entry of shareholders of € 16 million

Strategy

• Altera Industrial invests in up-to-date industrial space that can be let to a wide variety of tenants. Investments in buildings specifically developed for one particular user with limited potential for use by other tenants are avoided.
   
• In view of the relatively rapid economic aging in this sector, Altera Industrial pursues an active investment policy which focuses on continuous rejuvenation of the portfolio, partly by means of acquisitions and dispositions and upgrading. The intention is to invest mainly in objects built in the 1990s or thereafter.
   
• The strategy focuses on a balance in the portfolio between logistic space (50%) and non-logistic multitenant complexes (50%), for the purpose of diversification of concentration risks. Altera Industrial expects demand for modern logistical space to show a long-term increase. On the other hand, the concentration risks in this segment are recognised: usually a single-tenant situation, exposure to just one branch of industry and a relatively large capital requirement per individual buildings. The investment in smaller scaled, non-logistic, multi-tenant complexes offers significant diversification benefits due to the greater variety of buildings, locations, tenants and branches of industry. 
   
• The geographical policy of Altera Industrial is determined by the pattern of national and international logistics activities in the Netherlands (for logistical space) and by the large urban conglomerations where there are high levels of employment and value-adding businesses (for non-logistic multi-tenant complexes).