Dutch pension fund ABP has committed to remaining invested in real estate investor Vesteda amid reports of several pension funds submitting redemption requests for their investments.

Despite the widespread redemption requests, which have been driven by policy changes that could impact real estate returns, ABP said it was committed to positive outcomes for its members and had therefore reached an agreement for the stabilisation of Vesteda.

ABP said it was positive about the agreements reached to stabilise the fund, which were unanimously approved and aim to ensure fewer investors exit and these exits happen gradually.

It noted that this resulted in less pressure on Vesteda, creating more stability and predictability.

“A stable and future-proof Vesteda helps achieve solid long-term returns for our participants,” the pension fund stated.

“At the same time, this contributes to a well-functioning Dutch housing market.”

Through the agreement, the necessary liquidity can be organised in a ‘controlled manner’, which includes selling homes step by step.

“This contributes to the financial stability of Vesteda and thereby to the value and continuity of Vesteda, and thus our investment,” ABP said.

“This ensures that Vesteda remains an attractive fund for investing in Dutch homes in the long term.”

As a result of the agreements, ABP’s stake in Vesteda could increase from 33 per cent to 36 per cent due to exiting shareholders.

A solution had been reached for the transfer tax that ABP is required to pay as a consequence.

The agreements were reached to ensure that ABP will not be part of the group of shareholders exiting the real estate investor, and the pension fund aimed to withdraw its pro-rata request to exit so it could contribute to its stability by remaining invested in Vesteda.

“ABP remains committed to a good return for our participants, and in doing so, financial stability and social responsibility go hand in hand,” the pension fund concluded.

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