NEWS HEADLINES

Dutch Pension Fund Commits to U.S. Multifamily Investments

By Dana Enfinger

Following its initial $100 million commitment last spring, Dutch pension fund PGGM will invest an additional $100 million in Behringer Harvard’s expanding portfolio of Class A apartment communities. PGGM has an option to increase its commitment to a total of $300 million.

PGGM is a pension fund for Dutch health care workers with more than $100 billion in assets. It is the second-largest pension fund in The Netherlands, the eighth-largest in Europe, and the 17th-largest in the world.

Robert Behringer, founder and CEO of Dallas-based Behringer Harvard, said that since initially partnering with PGGM in May, his company “has completed, or is in the final stages of completing, transactions in 11 outstanding Class A apartment assets.” They are or will be located in the metropolitan areas of Atlanta; Dallas; Denver; Houston; Fort Lauderdale, Fla.; Las Vegas; and Washington, D.C.

This is the pension fund’s first direct investment in U.S. real estate. Behringer Harvard and PGGM are co-investing with multifamily developers such Fairfield Residential, Trammell Crow Residential, and the Altman Cos.

The duo plans to focus on upscale developments in areas with high barriers to entry and hold the assets for seven to 10 years.

Behringer Harvard will provide strategic management for each joint venture, including acquisition, asset management and disposition services, legal and accounting services, and property management.