21 Contingent liabilities and assets
As at 31 December 2023, the Fund’s total future liabilities amounted to € 242 million (2022: € 332 million). These commitments are made up as follows:
Investment commitments (in € million) | 2024 | 2025 | 2026+ |
Hembrug | (1) | 29 | 84 |
Loevesteinlaan (RES) | 17 | 11 | 23 |
Binck City Park Toren 2 | 20 | 4 | 2 |
Buitenpoort (WON) | 10 | 0 | 1 |
Koer (WON) | 10 | 0 | 0 |
Other < 10 | 8 | 0 | 7 |
65 | 44 | 117 |
As at 31 December 2023, the Fund had unprovisioned contractual obligations for future repairs and maintenance of € 11.8 million (2022: € 2.9 million).
The Fund has a contractual agreement with Bouwinvest for an indefinite period in which it has to pay a management fee, based on the net asset value (NAV). The notice period is two years.
Provision rental contract annulled
The Fund filed a court case against a tenant in Amstelveen, in which the Fund tried to recover rent in arrears. Although the tenant did not specifically protest against earlier rent increases, during the proceedings the judge conducted an ‘ex officio’ review based on European consumer law. The court found that, based on the rent increase clause in the lease agreement, it was unclear to the tenant which circumstances were taken in consideration for the determination of the annual rent increase. Therefore, this clause was annulled, and the court ruled that the Fund should not have passed on any rent increase from the start of the lease, in this case 1 July 2015.
This decision can have a material impact on all the other lease agreements related to residential units. The Fund has therefore appealed against this judgement. The Fund has filed its first procedural documents (the so-called memorie van grieven, or statement of appeal) on 9 January 2024.
Several other landlords (including (most) IVBN-members) are dealing with the same issue, since most of the landlords work with contracts based on the ROZ standard model, and therefore have similar clauses. On 5 October 2023, in a court case involving another landlord, a judge announced that they would ask the Dutch Supreme Court for clarification on the matter by asking preliminary questions. Following these questions, IVBN members decided to jointly register as stakeholders with the Supreme Court, rather than individually. Many residential investors in the IVBN, including Bouwinvest, have provided input for the argumentation as to why we believe the rent indexing clause is not unlawful. The Supreme Court's answers are expected in autumn 2024.