IVBN publications in English and activities
Activities:
Increasing professionalism
Fraud Risk Management
On 13 November 2007 it transpired that the Dutch Fiscal Information and Investigation Service/Economic Investigation Service (FIOD-ECD) was conducting an investigation into possible fraud in property transactions in which (former) employees of an institutional property investor and a prominent property developer were involved. The IVBN board was shocked, just as everyone else in the Dutch institutional property investment sector. As IVBN board we suggested to our members that as sector we should demonstrate what we are already doing to minimise the risk of fraud in the most critical processes, such as valuations and the purchase or sale of property, what we are doing to promote personal integrity and particularly how a properly functioning regulatory system can be deployed. As a result a regulation taskforce with a wide range of members was established. In February 2008 this taskforce published its report “Fraud risk Management in the institutional property sector”. This report contains the control measures deployed by professional parties in our sector to limit the chances of fraud and any possible financial consequences. It is primarily intended for the institutional property sector and regulators. Using this as a starting point, IVBN together with other parties involved in the institutional property investment sector such as developers, valuers, brokers, and also notaries, the Land Registry and Public Records Office, the ROZ-IPD Netherlands Property Index and the RICS will continue to investigate how these risks can be further reduced. A more extensive report is expected to be published just after the summer of 2008.
IVBN Model Property Management Agreement
In January 2007 IVBN launched the Model Property Management Agreement, which was developed in close cooperation with external property managers. This model agreement aims to place a standard in the market to advance professionalism in property management. Further to the model, IVBN has also drawn up proposals for a standard for digital data exchange via Pisces / OSCRE between property owners and external property managers.
Annual research seminar
A research seminar is held each year in September, organised by IVBN, ROZ Property Index and VBA (Association of Investment Analysts). In 2007 the central theme was alternative investments.
Recommendations for annual reporting
At the end of 2007, IVBN presented an addendum to the recommendation for annual reporting published in 2005. IVBN proposed providing more information about the segmentation of the property portfolio and certainly if a sector within a country forms more than 10% of the total. The addendum indicated how best to represent this segmentation. IVBN also recommended providing information about which parts of the portfolio are valued internally or externally and how to improve the presentation of information about the pipeline.
Lobby
Property development/redevelopment within a fiscal transparent investment institution
In August an amendment was published to the Dutch legislation governing property development and redevelopment within a fiscal transparent investment institution (fbi). A fbi has a so-called zero-rate of corporate income tax. The amendment creates the opportunity to establish a taxed subsidiary of an fbi in which the development/redevelopment activities can be performed. IVBN has been campaigning for this change in legislation since February 2001. Finally a good workable solution has been developed together with the Ministry of Finance. This is a great success for IVBN.
Social housing agencies
In April IVBN submitted a complaint to European Commissioner Mrs. Kroes about Dutch government policy concerning the responsibilities of social housing institutions. The core of the complaint is that social housing institutions are operating increasingly in commercial markets with state aid, and thus distorting fair competition. If social housing institutions are allowed to operate in commercial markets; it should be on a level playing field.
Platform
IVBN offers its members a meeting place with colleagues in the sector, there are plenty of opportunities for commercial (and also personal) contact and discussion on a range is subjects concerning members' operational issues. IVBN conducts its business via working groups.
IVBN Thesis Award 2009
For the seventh year IVBN (Association of Institutional Property Investors in The Netherlands) will grant an award for the best final thesis on Dutch real estate. By granting this award IVBN wants to promote research on real estate carried out by Dutch students. Maximum three theses will be nominated and the winner will be awarded € 5000. The other nominees will receive € 1000 each. The subject of the thesis must be related to the Dutch real estate market and must be written in the academic year 2008/2009. To enter the contest you should be enrolled at one of the following Dutch institutions:
· University
· Real Estate related post academic / post HBO masters
Publications:
February 2008
Fraude risk management in the institutional property sector
September 2007, winner IVBN Thesis Award
Serge Schiltz Valuation of vacant properties
January 2005
Recommendations for Annual Reporting
Addendum
Transparancy schedule
March 2004
IVBN Code of Ethics
The use of Codes of Ethics and Compliance Codes in Holland so far extends to companies in financial markets. However we think the property market also has a responsablitity towards society. Therefore IVBN developed a Code of Ethics for its members. This to give the membership of IVBN a distinguished status and show the market our values in integrity and ethics. The Code of Ethics consists of different articles describing the attitude of the members towards society, their personnel, clients (shareholders and tenants of residential and commercial real estate), other IVBN members, environment and the sustainability of their property. An additional Compliance Code was developed for employees of our members.