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solid investment power in the Netherlands, France and Germany

creating living environments


welcome

2


The art of bringing together the interests of all parties In our core countries the Netherlands, Germany and France, BPD develops many thousands of owner-occupied and rental houses every year. In addition to our excellent reputation in the private market, we, as a part of the Rabo Real Estate Group, also have extensive experience in project sales to investors. Over the past five years the value of our international investment housing sales amounted to 1 billion euro. This brochure offers you insight into our company, an organisation that offers the expertise necessary for project and area development on a European scale. We will zoom in on our development strategy that is geared toward high-potential urban areas in our three core countries.

Managing Board

Walter de Boer

Hayo Doornink

Carl-Jan Kreikamp

CEO BPD and Board Member of

Chief Operations Officer BPD

Chief Financial Risk Officer BPD

Rabo Real Estate Group

BPD combines its strong international position with regionally tailored solutions. We appreciate that real estate is essentially a local business. BPD understands and knows the enormous differences between countries like no other. This will also be discussed further in this brochure. In our work, we maintain intensive contact with authorities, architects and urban planners, with housing associations and investors, and of course, with the consumer. BPD has mastered the art of bringing together the different interests of all parties. Which ensures that you, the investor, will see further value development in the future. Walter de Boer, CEO BPD 3


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Amsterdam, Oostpoort, the Netherlands

5


who we are

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‘BPD harbours the necessary expertise for successful project and area development on a European scale.‘

BPD is a leading European area developer, operating in the Netherlands, France and Germany. BPD, founded in 1946, is a full subsidiary of Rabobank and belongs to Rabo Real Estate Group. We have created homes and neighbourhoods for over one million Europeans. Our name is linked to large suburban developments, but also to small-scaled residential projects in the heart of towns and cities. BPD maintains a consistently strong position in Europe and has been market leader in the Netherlands for many years. With almost thirty offices and agencies in our core countries’ viable areas, we know local residential needs and preferences,

Country Management

Walter de Boer

Jean-Philippe Bourgade

Franz-Josef Lickteig

Chairman of the Management Board

Chairman of the Management Board

Chairman of the Management Board

Bouwfonds Ontwikkeling

Bouwfonds Marignan Immobilier

Bouwfonds Immobilienentwicklung

and adapt our developments accordingly. In the Netherlands we operate under the name Bouwfonds Ontwikkeling, in Germany Bouwfonds Immobilienentwicklung, while in France we are known as Bouwfonds Marignan Immobilier.

Living environments BPD stands for creating ‘living environments’: areas that emanate a sense of tranquillity, where residents enjoy both their homes and their surroundings. We focus on offering a high-quality

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Amsterdam, La Grande Cour, the Netherlands Spectacular sight La Grande Cour is situated on the Westerdoks-

the rest of the building. Each firm designed its own

eiland, nearby Amsterdam Central Station and

cour. The result is a building that accommodates a

along the waterfront of the IJ. Residents look out

variety of atmospheres, yet retains harmonious unity.

over Amsterdam’s historic city centre and the water. Three architectural firms joined forces to

Awards

design the three 37-metre periscope-like towers, each

La Grande Cour has not gone unnoticed. The complex

of which rise up from a courtyard (cour) and tower over

won both the BNA Regional Award in 2008 and the NEPROM Location Award.

see the location on Google maps

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development, and pay the utmost attention to every aspect that impacts well-being. From public areas and safety to parks and accessibility. From architectural diversity and harmony to allocating room for shops, schools and cultural institutes.

Track record In our core countries, the Netherlands, Germany and France, we create thousands of rental and privately owned homes every year. Homes that meet the demands, desires and the financial capabilities of a wide diversity of housing consumers - from apartments in city centres or single family homes in new sub-urban developments to detached villas in the green countryside or affordable homes on the outskirts of cities. In addition to the private sale to housing consumers, BPD also has a strong track record in selling projects to investors. Over country the Netherlands municipality Amsterdam project name La Grande Cour

the past five years, we have sold approximately 1 billion euro in residential real estate in our European core countries to investors.

units 50 owner-occupied homes, 79 social rental homes, 123 rental apartments

Expertise

project residences, retail,

BPD serves international investors in multiple countries simulta-

underground parking

neously and harbours the expertise for successful project and

number of units sold to investor 123 (11,685 m2)

area development on a European scale.

usable area per unit

Our development strategy is primarily geared towards viable

average 95 m2

urban areas in our three core countries. In the Netherlands,

realisation 2007

our focus is particularly on Amsterdam, Utrecht, Rotterdam,

price transaction â‚Ź 36,500,000 special key aspects

The Hague, Amersfoort, Eindhoven, Tilburg, Breda and

BNA Region Award 2008,

Nijmegen. In Germany we concentrate on large cities such as

NEPROM Location Award

Frankfurt, Hamburg, Munich, Berlin, DĂźsseldorf, Cologne and Stuttgart while in France we predominantly focus on Paris with its surrounding urban areas, Lyon, Nantes, Lille, Bordeaux and the Marseille-Nice belt. The rental market is on the rise in all these areas in which we operate and growth is expected to continue over the forthcoming years.

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All our markets require proper and tailored expertise in matters of funding, property management and fiscal-legal consequences, especially due to the fact that the circumstances vary per country and area. In our capacity as a large, international and professional company, BPD has the expertise, experience and savvy to offer investors sound and methodical advice and support on all levels including specific, regionally determined issues.

Growth potential BPD’s investment products are distinct in terms of rentability, realistic initial returns, low risks and stable value. We constantly renew, expand and increase the sustainability of our project portfolio. BPD exclusively develops homes in areas with longterm household growth potential, a favourable economic outlook and an anticipated housing shortage, both in terms of quality and quantity. Our products have a stable, inflation-proof cash flow and are developed in mature economies with favourable long-term

country Germany municipality Düsseldorf project name Bilk units 66 owner-occupied

perspectives. BPD’s international strategy ensures optimum risk

apartments, 78 rental

dispersion while our regionally diversified project portfolio is a

apartments

solid basis for production in the coming years.

project residences, underground parking number of units sold

Tailored solutions

to investor 78 (5,202 m2)

We combine our strong international position with tailored

average 39 m2 - 156 m2

regional solutions and we recognise that real estate is essentially

realisation 2013 - 2014

a local business. The differences between our home countries

price transaction € 15,338,000

are enormous, there are even clear regional differences within the Netherlands, France and Germany themselves. BPD knows these differences like no other. Because of our local offices, we experience and hear about the needs of local consumers and the regional market trends first-hand. We maintain strong relationships and close contact with all of the involved stakeholders. Over the years, we have become deeply rooted in our markets, and this serves as the very foundation of our specialisation in regional tailormade solutions. 10

usable area per unit

special key aspects city central heating


Düsseldorf, Bilk, Germany Former freight station

Upgrading the city centre

Düsseldorf-Bilk is among the oldest districts in the

Of the total number of 144 apartments, 78 were sold

capital city of North Rhine - Westphalia. Built up high

to investors. The mix of apartments is the result of

above a former freight depot are four blocks of apart-

careful consideration, ranging from one to four room

ments with underground parking - distributed over

apartments with a maximum floor area of 156 m2. With

five buildings. The complex is situated near the new

this concept, BPD meets the residential demands and

shopping centre and across from the Florapark. The

desires of a wide variety of buyers and tenants and –

elevated location of the project site means that the

together with the retailers in the area – achieve further

upper floors of the buildings have spectacular views

development and upgrading of this part of the inner

of the city.

city.

see the location on Google maps

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Lyon, Lyon Islands, France Ambitious inner city project

Sustainable living

La Confluence is one of the most ambitious inner city

In order to minimise the impact on the environ-

projects in Europe. The convergence of the Rhône

ment and honour the gorgeous surroundings, Lyon

and Saône is one of the principal focal points of the

Islands meets both the HQE®-standard (Haute Qualité

project, as are the park, nature and the Sainte-Foy

Environnementale) and the demands of the European

hill. The achieved programme is truly eye-catching.

Concerto-Renaissance programme. This innovation

Situated at the heart of La Confluence, in Lyon’s Deux-

programme promotes the use of renewable energy

ième Arrondissement, the residential buildings of the

sources and the overall efficient use of energy. In 2007

sub-project Lyon Islands offer spectacular views of the

the French Association of Project Developers present-

quay, the park or the peninsula. The two to six room

ed Lyon Islands with the award for sustainable living

apartments are spacious and light. All amenities are

(Grand Prix du Logement Durable), the award for

high quality and the apartments feature the most

comfortable living in a natural environment (Grand

advanced technology available in the residential sec-

Prix de la Qualité de Vie au Naturel) and the regional

tor.

award (Grand Prix Régional).

see the location on Google maps

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Balance In all our projects, we strive to achieve the best possible balance between the environment, spatial quality and economic feasibility. At BPD, ‘sustainability’ is much more than growing returns or results. It also refers to forging long-term, stable and professional relationships as a solid, reliable and sincere partner. We maintain daily contact with municipalities and counties, with architects and urban planners, with housing associations and investors. And of course, with the consumer. BPD understands the art of bringing the interests of all parties together.

Fully prepared Our newly built projects are planned according to the latest insights into housing developments and infrastructure. We country France

constantly invest in market research, concept development,

municipality Lyon

process management and financial engineering. We conduct

project name Lyon Islands

extensive research into consumer desires and needs and choose

units 63 owner-occupied apartments, 64 social rental apartments, 175 rental

to involve our consumers in the development of innovative housing concepts, for the generations of today and tomorrow.

apartments

Which means that you, the investor, can be certain of favourable

project residences, parking,

value development into the future.

retail, commercial real estate, public park number of units sold to investor 175 usable area per unit average 70 m2 realisation 2010 price transaction € 58,106,000 special key aspects Haute Qualité Environnementale, Grand Prix du Logement Durable, Grand Prix de la Qualité de Vie au Naturel, Grand Prix Régional

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Würzburg, Mönchpark, Germany

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facts & figures

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Perspective on European growth With respect to size, BPD ranks in the top ten of European area developers. In the Netherlands, we are market leader; in Germany we belong to the top five and in France we rank among the top ten. We look to achieve steady growth in both France and Germany in the years to come.

Turnover 2012: Homes sold in 2012:

39,300+

Homes sold in the past ten years:

92,800+ 300,000+

Homes in the portfolio:

85,000+

Number of employees:

750+

France

Bouwfonds Ontwikkeling average homes sold per year

6,300+

Homes sold in the past five years:

Homes sold since establishment:

The Netherlands

â‚Ź 1.4 billion

4,500+

Germany

Bouwfonds Marignan Immobilier

Bouwfonds Immobilienentwicklung

average homes sold per year

average homes sold per year

2,750+

900+

homes sold in the past ten years 58,000+

homes sold in the past ten years 26,000+

homes sold in the past ten years 6,300+

6 regional branches

6 regional branches

7 regional branches

1 subsidiary company

15 local agencies

established in 1993

established in 1946

established in 1970

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Rabo Real Estate Group

FGH

MAB

Bank

Development

Bouwfonds

Fondsen-

Investment

beheer

Management

Nederland

BPD

Bouwfonds

Bouwfonds

Bouwfonds

Ontwikkeling

Immobilienentwicklung

Marignan Immobilier

BPD Managing Board Walter de Boer

Hayo Doornink

Carl-Jan Kreikamp

CEO BPD and Board Member of

Chief Operations Officer BPD

Chief Financial Risk Officer BPD

Rabo Real Estate Group

Country Management The Netherlands

France

Germany

Walter de Boer

Jean-Philippe Bourgade

Franz-Josef Lickteig

Chairman of the Management Board

Chairman of the Management Board

Chairman of the Management Board

Bouwfonds Ontwikkeling

Bouwfonds Marignan Immobilier

Bouwfonds Immobilienentwicklung

1946

2000

2008

1951 1960

Establishment of Bouwspaarkas by 27 Dutch municipalities

Start of project home construction

Bouwfonds controlled by 600 Dutch municipalities

1968

Completion of 50,000th home

1988

Start of commercial property activities

1993 1998

Start of international activities in Germany

Start of activities in the Czech Republic

2001 2003 2004 2005 2006 2007

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After 55 years, Bouwfonds becomes a subsidiary company of ABN AMRO

Acquisition of French housing developer, Marignan Immobilier Start of activities in Belgium

Housing, international and property development integrated in Bouwfonds Property Development

Acquisition of MAB, specialist in mixed-use projects and inner city retail sales

Start of activities in Denmark, Sweden, Spain and Slovakia

Acquisition by Rabobank Group

Integration of Bouwfonds and Rabo Real Estate

2009 2010 2011 2012

2013

Completion of 250,000th home

Introduction of new brand in the Netherlands: Bouwfonds Ontwikkeling

Focus on growth in France and Germany

Bouwfonds turns 65

Joint sustainability and marketing in the core countries of Germany, France and the Netherlands

Opening Berlin office


delft haarlem delft haarlem eindhoven eindhoven amersfoort amersfoort hoevelaken hoevelaken zwolle

-

zwolle

--

hamburghamburg

berlin

berlin

rennes tours rennes rouen tours paris rouenlille paris lille düsseldorf düsseldorf cologne cologne frankfurtfrankfurt

stuttgartstuttgart munich munich nantes

nantes

strasbourg strasbourg annecy annecy lyon

lyon

nice

nice

hyères

hyères

bordeauxbordeaux

-

--

toulouse toulouse montpellier montpellier marseillemarseille

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20


Paris, Canal Square, France

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rental markets

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‘We strive to achieve the best possible balance between the environment, spatial quality and economic feasibility.‘

At BPD, rental housing is just as important as owner-occupied housing. In Germany, France and the Netherlands rental housing is currently under development for the institutional and private investor markets. Demographic and economic trends are proving increasingly non-linear, which in turn impacts the rental market. The structure of and attitude toward the rental market varies greatly from country to country. BPD understands the best practices of the rental market and translates this into innovative and secure value investment products.

Dutch rental market The Netherlands has a rather extraordinary rental market. The Dutch housing supply predominantly consists of privately owned homes and social housing. Dutch housing associations are the largest party in this social rental segment. Especially the younger generation has a different perspective on housing and ownership than the generations before them. As a result, they opt to rent more often than to buy their first home.

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A variety of consumers make the deliberate choice to rent a home, based on their personal economic and demographic situation. Their life stage can also serve as a defining factor. Senior citizens have a pronounced preference for rental homes, which may be related to the loss of their partner, a decline in income or the deterioration of their health.

Growing demand The decreased demand for houses on the buyer’s market has a proper impact on the rental sector. New legislature and regulations concerning the rental rate law that came into force in 2013 mean that rents in the social sector will approach liberal market rents. Further downscaling of subsidies for the purchase of houses and for the social rental sector, and the implementation of the rental levy for houses with a rental rate less than 680 euro p.m. will make the Dutch rental market even more interesting for investors. There is a fast growing demand for houses with a rental rate between 680 euro and 1,000 euro per month.

Solid foundation The Dutch housing market has a solid foundation. Late in 2012 the total housing stock in the Netherlands amounted to 7.3 million. From a national perspective this is quite cramped, because the number of households (7.5 million) in the Netherlands is slightly higher than the number of houses - this means that there is no surplus. The number of households will continue to grow and the housing shortage will increase because construction of new houses consistently lags behind. Dutch price levels are favourable in comparison to the strongest European economies and therefore international investors are drawn by the anticipated further growth of the commercial rental segment in the Netherlands.

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‘There is a fast growing demand for houses with a rental rate between 680 - 1,000 euro per month.’


Indirect return on investment developed unfavourably over the past years, but there were no major fluctuations in the direct return over the past decade. Falling housing prices and rising rental rates saw direct returns grow from 3.6% in 2008 to 4.3% per year in 2012.

Return on investment Dutch rental market

Inflation and rental price development the Netherlands

10

15

8

10

6

5

4

0

2

-5

0

-10 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

20

1959 1962 1965 1968 1971 1974 1977 1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013

12

Inflation Rental price development

Source: CBS, adjustments BPD

Income return Capital growth Total return

Source: IPD, adjustments BPD

Long-term economic & social development

1980

1990

2000

2012

GDP per capita (US$)

12,775

19,722

24,179

45,959

Inflation (%)

6.5

2.5

4.0

2.5

Population (mn)

14.1

14.9

15.9

16.8

Urban population (% of total)

64.7

68.7

76.8

83.1

Life expectancy (years)

75.7

76.9

78.0

80.7

Source: Oxford Economics & World Bank

Long-term sovereign credit ratings & outlook

Foreign currency

Local curency

Fitch

AAA (negative)

AAA (negative)

Moody’s

Aaa (negative)

Aaa (negative)

S&P

AA+ (stable)

AA+ (stable)

Source: Oxford Economics & World Bank

Corruption perceptions index 2012

Score

Developed economies (average)

74.8

Emerging economies (average)

38.0

The Netherlands

84.0

Source: Transparancy international

Scoringsystem: 100 = highly clean, 0 = highly corrupt

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Return on investment Germany rental market

Inflation and rental price development Germany

3.5%

10

3.0%

8

2.5%

6

2.0%

4

1.5% 2

1.0%

0

0.5%

Inflation Rental price development

Source: Statisches Bundesamt, adjustments BPD

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

1998

1997

1996

1997

-2

0.0%

Income return Capital growth Total return

Source: IPD, adjustments BPD

Long-term economic & social development

1980

1990

2000

2012

GDP per capita (US$)

11,746

21,584

22,946

41,932

Inflation (%)

5.4

2.7

1.5

2.0

Population (mn)

79.2

80.5

82.2

81.7

Urban population (% of total)

72.8

73.1

73.1

73.9

Life expectancy (years)

72.8

75.3

77.9

80.0

Source: Oxford Economics & World Bank

Long-term sovereign credit ratings & outlook

Foreign currency

Local curency

Fitch

AAA (stable)

AAA (stable)

Moody’s

Aaa (negative)

Aaa (negative)

S&P

AAA (stable)

AAA (stable)

Source: Oxford Economics & World Bank

Corruption perceptions index 2012

Score

Developed economies (average)

74.8

Emerging economies (average)

38.0

Germany

79.0

Source: Transparancy international

26

Scoringsystem: 100 = highly clean, 0 = highly corrupt


German rental market ‘National and international investors are looking for houses in strong economic areas, in good locations.’

Germany has a strong rental tradition. Houses are often rented for long periods of time and consumers tend to purchase their first house relatively late in life. Second only to Switzerland, Germany has the largest share of private rent in Europe, with more than half of the German population living in a private rental home.

Good risk-return profile Germany has a large, stable, professional commercial rental market. Investor activities are mostly concentrated around the country’s major cities, although there are large regional differences. Investors give a positive assessment of the risk-return profile of the residential property investment market, which serves as a safe harbour. There is also great demand for socalled ‘core investment products’. National and international investors are looking for houses in strong economic areas, in good locations. This increasing demand has caused prices to rise and the initial yields to fall.

Higher overall yields The residential property investment market in Germany saw higher overall yields during the period 2007 through 2012 than the market for offices, stores or other commercial property. The direct return also rose sharply over the past five years. In 2007, the direct return was 3.4%, but this has since risen to 4.7% per year. The increase of national German rental rates has lagged behind inflation. However, these figures also vary enormously according to region. Berlin and Hamburg show the greatest growth, although Cologne, Düsseldorf, Frankfurt and Stuttgart have also demonstrated strong rental rate developments. Munich remains the most expensive city in Germany by far.

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Return on investment French rental market

Inflation and rental price development France

3.5%

25

3.0%

20

2.5%

15

2.0%

10

1.5% 5

1.0%

0

0.5%

Inflation Rental price development

Source: INSEE, adjustments BPD

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

2000

1999

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

1998

-5

0.0%

Income return Capital growth Total return

Source: IPD, adjustments BPD

Long-term economic & social development

1980

1990

2000

2012

GDP per capita (US$)

12,513

21,350

21,775

39,823

Inflation (%)

13.5

3.4

1.7

2.0

Population (mn)

53.9

56.8

60.8

65.5

Urban population (% of total)

73.3

74.1

76.9

85.7

Life expectancy (years)

74.1

76.6

79.0

81.4

Source: Oxford Economics & World Bank

Long-term sovereign credit ratings & outlook

Foreign currency

Local curency

Fitch

AA+ (stable)

AA+ (stable)

Moody’s

Aa1 (negative)

Aa1 (negative)

S&P

AA+ (negative)

AA+ (negative)

Source: Oxford Economics & World Bank

Corruption perceptions index 2012

Score

Developed economies (average)

74.8

Emerging economies (average)

38.0

France

71.0

Source: Transparancy international

28

Scoringsystem: 100 = highly clean, 0 = highly corrupt


French rental market Although it is relatively easy to finance the purchase of a residential property, French consumers are currently tentative with respect to buying their own homes. Similar to the situation in Germany, the French often rent houses for extended periods of time. The current labour market requires greater mobility, which is better suited to renting a property than to buying it. In the country’s major cities, the total number of households continues to increase. The greatest increase is found in the Parisian metropolis. There are substantial differences in rental rates between Île-de-France and the major regional cities.

Safe and interesting The private rental sector is a major component of the overall housing supply. France has a large, stable, professional but strictly regulated commercial rental market. The residential property investment market is predominantly concentrated in the major cities, although there are substantial regional differences. The current French residential property investment market is interesting. Investments in multiple-family homes are generally considered safe in an economic climate where investments such as bonds are under pressure. Investors assess that the market has a favourable risk-return profile related to fiscal legislation. The

‘The housing shortage is expected to continue to increase.’

demand for ‘core investment products’ remains considerable. The French housing market has a sound foundation. There is a housing shortage, and the number of households will continue to grow substantially over the coming years. In turn, the housing shortage is expected to continue to increase.

Value development Over the past years capital appreciation and value development figures were favourable. There were no major fluctuations in direct return in the past decade. In 2008 the direct return was 3.4% and has since seen a slight decrease to 3% per year.

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contact

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Contact Head Office BPD

www.bpdeurope.com

Westerdorpsstraat 66

- complete investment portfolio

3871 AZ Hoevelaken

- investor background information

The Netherlands

- legal and fiscal information rental markets

T +31 (0)33 253 97 00 W www.bpdeurope.com E ontwikkeling@bouwfonds.nl

The Netherlands Bouwfonds Ontwikkeling

Contact investor relations the Netherlands

Westerdorpsstraat 66

Ronnie Holtslag

3871 AZ Hoevelaken

T + 31 (0)33 253 99 76

T +31 (0)33 253 97 00

M + 31 (0)6 10 02 81 95

W www.bouwfonds.nl

r.holtslag@bouwfonds.nl

E ontwikkeling@bouwfonds.nl Germany Bouwfonds Immobilienentwicklung

Contact investor relations Germany

Lyoner StraĂ&#x;e 15

Franz-Josef Lickteig

60528 Frankfurt

T + 49 (69) 21 97 98 12

T +49 (69) 21 97 980

fj.lickteig@bouwfonds.de

W www.bouwfonds.de

Design & layout Joost Nijhof Copy Arjan Gras Print NPN Drukkers

Photographers Erik Smits, Augusto Da Silva, Jan de Vries, Edwin Walvisch

France Bouwfonds Marignan Immobilier

Contact investor relations France

70, rue de Villiers

James Pelluard

F-92532 Levallois-Perret Cedex

T + 33 (0)1 49 64 45 77

T +33 (0)1 4 96 41 515

M + 33 (0)6 11 86 07 71

W www.bouwfonds-marignan.com

j.pelluard@bouwfonds-marignan.com

Customer Due Diligence As Bouwfonds Property Development is owned by the Rabobank, we are required to comply with the Dutch Central Bank CDD legislation. All potential clients will therefore be screened to validate their identity and integrity. Although the utmost care has been taken in the preparation of this brochure, BPD cannot guarantee that the information provided is either correct or complete. Therefor, BPD will not accept any liability suffered or incurred by any person arising out of or in connection with any reliance on the content of or information contained in this brochure. This brochure is available from the Communication Department of BPD in Hoevelaken (ontwikkeling@bouwfonds.nl). Š 2014 BPD creating living environments

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www.bpdeurope.com

creating living environments

BPD is part of Rabo Real Estate Group


Solid investment power in the Netherlands, France and Germany