Dutch pension fund invested in UK and US RE debt

Pension fund manager SPMS says the fund's property allocation, which includes the €90m debt investment, is in line to hit its overall return target benchmark of 6.5 percent.

An investment from Dutch pension fund manager Stichting Pensioenfonds Medisch Specialisten (SPMS) made earlier this year in real estate debt is 50 percent invested, Jeroen Steenvoorden, director of the fund, told PDI.

The manager decided to allocate about 1 percent or €90 million of its €9 billion portfolio for investment in real estate debt in the latter part of last year. The pension fund scheme has a 10 percent allocation to property overall.

Aviva Investors is the firm’s fiduciary manager and oversees the real estate managers which invest on behalf of SPMS. The real estate debt portfolio is concentrated in the US and the UK at present, Steenvoorden said.

SPMS has a 6.5 percent return target benchmark for its property allocation and the expected return for its real estate debt investments are in line with that overall figure, Steenvoorden said.

SPMS declined to disclose the names of the investment managers.

This article was amended at 5.30pm to reflect that the real estate debt allocation is 50 percent invested.