Portfolio strategy

The ARC Fund invests in the Dutch residential rental sector and has a long-term horizon. We are committed to making future-proof choices to realise attractive, stable dividend yields and long-term value growth for our Investors. We achieve this by investing in a well-diversified portfolio of affordable/attainable rental properties in the mid-priced segment located in areas with significant populations and economic opportunities.

The ARC Fund’s strategy consists of three pillars: new urbanism, aging population, and following market pressures. These pillars have been selected based on market trends, developments, and forecasts on a national and regional level. These pillars support informed decision making regarding our investments, and divestments.

New urbanism

The urbanisation trend in the Netherlands means that the 40 biggest municipalities are expected to account for 59% of growth in households. We aim to address the growing demand for high-quality housing, as well as the shortage of affordable housing in these areas. Themes include hybrid living concepts, affordable co-living concepts with shared facilities and amenities, and area management.

Aging population

Many seniors remain in homes that no longer suit their needs due to a lack of alternatives. This has a significant impact on the Dutch housing market. We aim to invest in innovative housing concepts for this target group that offer an attractive alternative to conventional single-family housing units. In doing so, we contribute to the Dutch government’s goal to increase suitable housing options for older residents and improve mobility in the housing market. Themes include area management with a focus on social security, clustered homes, communal spaces and access to healthcare services.

Following market pressures

We move in the direction of the demand and focus on investing in affordable/attainable housing in areas with significant populations and economic growth, and in mobility hubs. Themes include concentrated housing units in attractive areas and affordable and high-quality housing concepts for small households.
Each year, we measure our performance based on KPIs. We have determine these KPIs based on the material Environmental, Social, and Governance (ESG) themes for the ARC Fund. Our KPIs reflect our commitment to achieving a sustainable portfolio. The appendix contains additional information on the materiality assessment and its translation into the Fund strategy.