Interview with: Bart Hostens, Managing Director, Belfort Fund Management BV

1. Interview with: Bart Hostens,
Managing Director, Belfort Fund
Management BV
“There is a huge market gap for
professional managed elderly rental
properties in The Netherlands,”
according to Bart Hostens, Managing
Director, Belfort Fund Management
BV. By 2040, 26 percent of the
population will be 65+ and renting will
be a particularly attractive option for
them for different reasons, he says.
Belfort Fund Management BV is a fund
manager at the marcus evans Elite
S ummit 20 15 , in Mo ntr eux ,
Switzerland, 18 - 20 May.
What demographic trends do you
project for The Netherlands?
The largest group of the Dutch
population is aged between 40 and 66
years. With 6.4 million inhabitants this
category amounts to 38 percent of the
total population. These people form the
majority of the post-war baby boom
generation, born between 1946 and
1970. The combination of the figures of
the National Dutch Compass and
forecast figures from Statistics
Netherlands predict a huge shift forward
in the next 25 years. In 2040, 26
percent of the population will be 65+.
On 1 January 2013, this was still 17
percent. By around 2040, the number of
65+ people will grow from 2.7 million in
early 2012 to 4.7 million in 30 years.
What are the investment opportuni-
ties that take advantage of this
shift? Why is serviced housing for
the elderly attractive?
There is a relatively large market for
rental properties in The Netherlands.
The income and wealth of the elderly
target group has improved over the past
two decades. In 2010 elderly people had
on average 26 percent more income
than the elderly in 1990. The average
income of the elderly during the same
period increased 18 percent more than
the average income of households
younger than 65. Approximately 40
percent of the elderly have net-savings
of over EUR 200,000.
More importantly, each year four to five
percent of the target group is willing to
move to a new home, and they usually
choose a good rental home. This
because of the well-regulated social
rental sector by the cooperative system
which gives limited access to the higher
income target groups.
So there is a relatively large market for
rental properties in The Netherlands.
However, there are large regional
differences. The majority of the demand
is focused on small-scale apartment
complexes in good neighbourhoods,
preferably in or near the town or city
where they already live.
Why is renting a particularly
attractive option for older people?
Renting is a particularly attractive
option because they can change their
living situation quickly depending on
their circumstances (health and need for
care), and have the freedom to use
their assets, which may have otherwise
been tied up in their house. Service flats
therefore have a huge potential. During
the coming years there will only be a
very limited access to social housing for
income groups of more than approxi-
mately EUR 34,000. That means that
these groups will have to rely on the
private rental sector. What’s more,
service flats are often situated in
attractive, favourably positioned
locations. This makes service flats
attractive investment properties.
What are some of the risks
associated with this fund? What
advice do you have for mitigating or
managing these risks?
Besides the general market risk and
default risks associated with bondhold-
ers, the following specific risks need to
be mentioned: liquidity risks, interest
payment risks, scale risks, risk
amending legislation, vacancy risks,
rental risks, debtor risks and acquisition
risks. These risks can and will be
mitigated by the ultimate property
selection for (small) apartment
complexes with services and care
arrangement that are located in the
right locations, both at the macro level
(in the appropriate regions and cities)
and micro level (in the best neighbour-
hoods). Combined with professional
facility management this property
selection will help to manage all
mentioned risks.
There is a
relatively
large market
for rental
properties
in The
Netherlands
The Property Investment Opportunities
to Look at in The Netherlands

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About Belfort Fund Management BV
Belfort Fund Management BV is specialised in Boutique Fund Management. With over 30 funds under management we cover a
broad spectrum of services. Real Estate Funds in the Netherlands and Germany, Hedge Funds and Private Equity Funds in the
Shipping Fund Industry belong to our expertise. We act under AIFMD license from our Dutch headquarters.
Actually, we are sourcing funds for Belfort Retirement Estate Fund NV, our latest fixed income product. Secured investment in
attractive Real Estate with a scope on serviced housing for the elderly. Our professional team of experts facilitate in-house fund
administration, asset management and private equity deals.
www.belfortgroup.eu
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To view the web version of this interview, please click here: www.elitesummit.com/BartHostens