Home Invest Belgium is a reference in the market for lettable residential properties that are affordable and highly qualitative.
Our ambition is to maximise value creation and accelerate the company’s growth by operating on three levels:
- the acquisition of existing buildings and development projects;
- the constant improvement of our existing portfolio;
- the selective sale of assets to rejuvenate the portfolio.
Prioritise the quality of the investments and the potential capital gains
Home Invest Belgium invests in quality residential buildings, which on the one hand allow the company to generate a stable and recurrent income while on the other hand generating capital gains with unit per unit sales. Each building is subject to the usual technical, legal and fiscal due diligence examinations. The buildings are also regularly evaluated, taking into account their intrinsic characteristics as to location, accessibility, immediate surroundings and energy performance.
The company anticipates on the demographic evolution and the needs of the residential property market and consequently closely monitors the segment of housing for students and young professionals. This segment indeed provides an answer to the needs of the younger generations who are searching for qualitative housing that meets the current standards in terms of sustainability, accessibility and attractive living environment.
In terms of geographical diversification, Brussels and the other major Belgian cities continue to be Home Invest Belgium’s core markets.
Priority for sustainable projects that create capital gains and innovative concepts
With a view to accelerating the growth and rejuvenation of its portfolio Home Invest Belgium also pays special attention to opportunities for acquiring important development projects for own account, such as the reconversion of office buildings into residential buildings.
Home Invest Belgium applies rigorous criteria in terms of quality and sustainability to all of its projects. It closely monitors the demographic evolution and the emerging trends in the residential market, such as the smaller size of housing units, the emergence of shared housing, the demand for services in apartment buildings, environmental concerns… The company thus develops new housing concepts that are part of the evolution of “city living”.
The investment criteria – that apply to the acquisitions of buildings as well as of development projects – are as follows:
- a net yield – immediately or just after works are completed – in line with the profitability objectives of the RREC, combined with the existence of a potential for capital gains when the asset is sold;
- the minimum size of a transaction is €3 million (immediate investment value or after the works are completed) and €5 million for a portfolio;
- the liquidity, both with regard to the rental market in a specific city and with regard to the possibility of block or split sales in the future;
- the location, which, in principle, is strictly limited to Belgium; priority is given to cities with over 50,000 inhabitants in a healthy economic state, with a favourable demographic evolution and having an appreciable growth potential in terms of property value;
- the intrinsic technical and commercial quality of the project (no risk of structural vacancy);
- the energy performance of the buildings;
- the architectural quality, the sustainability of the concept and the materials.
Optimisation of rental management and occupancy rate as well as rejuvenation of the portfolio
Home Invest Belgium manages a large number of leases – over 1,900 at the end of December 2018. The company’s ambition is to realise economies of scale and to distinguish itself from the multitude of private investors that operate in the residential market by offering a qualitative service to its tenants. The quality of the service, on the administrative, technical and commercial levels, is an essential part of the company’s success, benefiting both the tenants and the shareholders.
Home Invest Belgium constantly looks at ways of increasing the value of its assets. In this framework the company also engaged major renovations of the buildings in its portfolio. The requirements in terms of renovation are highlighted by the rigorous monitoring of the performance of each building. Renovations programmes are developed in close collaboration with the sales and technical teams.
Selective disinvestment through unit per unit sales of the buildings in portfolio
Every year all the buildings in the portfolio are subjected to a thorough examination, combined with a study of the local property market. Based on this, a selection of buildings to be put up for sale is drawn up in the context of the preparation of the annual budget. This is subject to the approval of the Board of Directors.
This selective disinvestment of the buildings to be sold off contributes to the growth of the return on investment, in a significant and regular way through the substantial capital gains that are realised in the interest of the shareholders.
Since 2012, the Board has set itself a target to reach an annual sales volume of at least 4% of the portfolio of the buildings in operation.