Van der Vorm invests in private debt: "More than just financing"

Private financing is on the rise. At Van der Vorm Investment Group, too, interest is growing in getting into real estate projects through alternative forms of investment. "We are putting more and more emphasis on private debt as a logical extension of our real estate strategy," says Herman Jan Faber, CFO at Van der Vorm. "Not only because of the returns, but also precisely because we can add value to projects that fall outside the scope of traditional banks."

We focus on the Dutch and Polish real estate market in particular with private financing. These are sectors in which we have been active for more than a century: residential, hotel and retail. "Precisely in these segments we understand the underlying value and dynamics of the market. That enables us to make sharp risk assessments. We can move quickly and act as a business partner, not just a lender."

Private financing is seen by Van der Vorm as complementary to the existing real estate portfolio. "We are active in bridge financing and development phase loans, often exactly the places where traditional financiers retreat. Our strength lies in a personal, flexible approach with room for customization."

The growth in private debt is not funded by real estate sales, Faber emphasizes. "Our strategy is focused on diversified growth: we combine real estate, equity, private financing and collaborations through joint ventures. In doing so, we invest selectively, with an eye for both risks and opportunities." Those collaborations are increasing. "We recently signed our first joint venture in Poland, and there are advanced discussions with a second party. We are also actively seeking like-minded partners in the Netherlands."

"What sets us apart is the active involvement in the projects we fund. We look beyond the spreadsheet. Of course we set conditions, but above all we look for solutions that fit the risk profile as well as the vision of the entrepreneur. That way we can also add value at times when banks don't step in."

With financing between €5 and €15 million, with maturities of 1 to 3 years, we offer a quick and decisive alternative. "Within days we can make decisions," says Faber. "We understand real estate, but above all: we understand entrepreneurs."

View more information on financing here or contact Herman Jan Faber, CFO, h.faber@vormvastgoed.nl.