Welcome at ABS Capital
ABS Capital, an investment vehicle, offers a compelling opportunity for investors seeking strong, asset-backed returns. We specialize in commercial real estate, specifically focusing on light industrial properties located near metropolitan hubs in Europe. Our mission is to provide entrepreneurs and investors with a network of strategic locations for processing, storing, and delivering products. By staying close to local economies and customers, we ensure great places to work near people's homes.
Expertise
Investment Opportunity and Target Returns
ABS Capital aims to generate an annual return of over 11% from rent income, inclusive of financing. Our strategy is to reinvest these cash returns into new properties or use them to reduce outstanding debt, which will help us grow the fund. Our goal is to create a fund of over €100 million, offering a diversified investment opportunity for select external investors alongside our own capital.
Strengths, Opportunities, and Mitigated Risks
Strengths:
- Asset-Backed Security: Our investments are backed by tangible, physical properties.
- Strong Locations: We acquire properties in strategic locations with proximity to major cities, customers, and employees.
- High Returns: Our target is to generate annual returns of over 11%.
- Energy Efficiency: Our properties have solid energy labels, making them ready for future regulations.
- Existing Infrastructure: Our properties are part of the existing energy grid, avoiding the difficulties of gaining access to power that new builds face.
Opportunities:
- Market Expansion: We've only just started in Weesp, Almere and Bussum, leaving significant room for market growth.
- Development Potential: Opportunities exist to develop new properties and redevelop our current portfolio.
- Favorable Interest Rate Environment: A potential drop in interest rates could significantly boost our returns.
Mitigated Risks:
- Market Volatility: While the light industrial segment is largely focused on small and medium-sized enterprises (SMEs), which are more vulnerable to economic downturns, we mitigate the risk of increased vacancy rates by maintaining a diversified portfolio.
- Unpredictable Interest Rates: Although the interest rate environment is unpredictable in the long term, our business model is designed to provide good returns even with current rates
Frequently Asked Questions
Our Proven Track Record and Strategic Pivot
Our journey in real estate began in 2016 with residential properties, a market that provided good returns due to low rent multiples and historically low interest rates. Over the years, our portfolio evolved, generating a solid cash flow and a second income stream. We also successfully launched Gaan B.V., where we renovated and sold several apartments in Amsterdam within six months, demonstrating our ability to generate quick returns.
However, the real estate landscape in the Netherlands shifted dramatically with new regulations, increased taxes on personal investments, and a property transfer tax that went from 2% to 10.4%. Recognizing these challenges, we strategically sold most of our residential properties to seek a new segment with better returns on our generated equity. This led us to initiate ABS Capital in 2024, as we found that the light industrial segment provides strong returns even in the current interest rate environment.
“ABS Capital is a solid investment with high returns and supplements my pension. The team was professional and knowledgeable; I highly recommend them.”
Jan Jansen
Contact us
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About us
ABS Capital is a reliable partner for specialized real estate investments. We are based in Blaricum, Netherlands, and strive for customer satisfaction and successful results for all our clients.