MICROCAPITAL STORY: Annexum, Real Estate Investor Based in Netherlands, Launches Dutch Microfund

Dutch real estate investment company Annexum launched Dutch Microfund, a microfinance investment fund specifically targeted at the private and institutional investors. Dutch Microfund offers private investors the opportunity to invest in microfinance institutions (MFIs) directly or indirectly, through partners and mandates. The investment options are loan, equity and collateralized debt obligations (CDO). The average expected return is 7%-9% given a minimum investment of USD 1,561 (Euros 1000).

Huib Boissevain is one of the founding partners of Annexum. He was formerly an executive board member of Dutch real estate investment company VastNed Group that consists of two publicly traded subsidiaries; VastNed Offices/Industrial and VastNed Retail. Boissevain, in a recent press release, stated that they have been inspired by the work of management theorist C.K Prahalad. In his book, The fortune at the bottom of the pyramid, Prahalad advises that the poor should be seen as creative entrepreneurs, rather than as victims. Boissevain expects to attract clients who are willing to gain both socially and financially from their investments. Annexum added Dutch Microfund to its range of real estate funds based on the data that 97% of the loans are paid back. The only publicly available information on Dutch Microfund is the self-issued press release at its launch. 

Real estate specialist Annexum, founded in 2000, has structured funds primarily in Netherlands. The company has also spread to France, Belgium and Germany; managing assets USD 1.015 billion (Euros 650 million) on behalf of its clients. Worldwide, real estate investments keep up the pace. According to 2007 Merryill Lynch World Wealth Report, global real estate investment totaled USD 900 billion in 2006, while High Net Worth Individuals (HNWI) around the world increased their allocation to real estate from 16% to 24% of their portfolios.

By Ipek Kuran, Research Assistant

Annexum

Dutch Microfund


World Wealth Report 2007

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