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Dutch Capital Markets Outlook 2014: inflow new capital to also boost Dutch market for real estate investment in 2014

• Investment volume increased by over 20% to almost €5.1 billion.
• At least 10% growth expected 2014; total investment volume over €5.6 billion.
• Stock market listing/IPO viable exit strategy once again.
• Available capital will rise due to increasing activity German funds, new arrivals with Anglo-Saxon and Anglo-American backgrounds and increasing availability of loan capital.

AMSTERDAM, 8 April 2014 - The Dutch market for real estate investment displayed its resilience in 2013. Total investment volume increased by over 20 percent to almost €5.1 billion. And expectations for 2014 are also positive. The first quarter went well and realised an investment volume of circa €1.5 billion. JLL expects growth of at least 10 percent for the whole of 2014. This means investment volume will amount to over €5.6 billion. These were the findings reported by JLL in the Dutch Capital Markets Outlook 2014, Sustainable steady growth.

There are also positive signs as far as financing is concerned. Besides traditional and relatively new financiers, financiers from countries like France, the United Kingdom and Germany also appeared on the scene in the first quarter of 2014. They are looking for attractive financing opportunities and have created extra liquidity in the Dutch real estate market. This inflow of new capital into the Dutch real estate market has raised questions about the future sales strategies of new buyers. Therefore, the report has examined their short, medium and long-term strategies.

Dré van Leeuwen, Director Capital Markets at JLL Netherlands: "This access to extra loan capital means the Dutch market for real estate investment can continue its recent evolution. We thus expect just about all real estate sectors to witness an increase in investment volume. Sustainable and gradual growth will be encountered. However, it is important to bear in mind that the various sectors are all in different phases of the real estate cycle. This means prices are formed differently in each real estate sector, with each also having its own opportunities and challenges. The inflow of new capital into the Dutch real estate market also means certain parties are planning an exit. The strategy and timing for these exits will be largely determined by market developments in the user and investment markets. They will also follow the economic cycle. One strategy we think could become more common, involves exiting via an IPO. Considering current market conditions, we expect the first Dutch IPO to be successfully completed in 2014."

Stock market listing a viable option again
Capital collection remains the main reason for initiating a listing on the stock market. This will result in an indirect (partial) exit for the capital of existing investors. New international investors who are currently active in the Dutch market for real estate investment, as well as national investors who have been here for quite some time, see IPO's as a potential strategy. In 2013, this development had already been encountered in the United States and Europe, where various real estate IPO's were successful. The largest real estate IPO involved the stock-market listing of LEG Immobilien AG in the first quarter of 2013. LEG Immobilien AG is a German investor in residential real estate, which managed to collect over €1 billion from its listing. In terms of the Netherlands, the EPRA - the European sector organization for stock-market listed real estate - believes the real estate markets for logistics and residential property offer the best opportunities for realizing a successful IPO in the coming two years.