In the box or out of the box?

We are “no-box free thinkers”: independent, innovative, disruptive, holistic.

We are holistic and not linear thinkers:

We have a 360° approach of today’s risks in a fast-changing world in aaddressing the future with excellence and innovation.

The world is increasingly uncertain, unstable, unpredictable, disruptive.

We believe we are facing an epochal opportunity characterized by an exceptional convergence of vital problems to be solved:

• Fight for survival of humanity against Earth’s climate dislocation,
• depletion of natural resources,
• destruction of ecosystems,
• overpopulation,
• massive and disorderly urbanization,
• uncontrolled and pervasive environmental pollution, desertification,
• scarcity of water.

We have seen many financial, economic, geo-political, and public health crises and fluctuating economical cycles in the last 40 years.

Tangible assets like real estate are defined “alternative” by traditional investment markets but are becoming mainstream given shares and bonds high volatility, uncontrolled high-risk structured finance products polluting and manipulating financial markets, growing economic uncertainties, and geopolitical instability.

Several factors have now come into play pushing for a new paradigm in real estate:

• Existing property stock and traditional construction techniques cannot reach targets of highest energy cost/performance ratio, sustainable energy independence, and lowest/Net Zero CO2 emissions within a reasonable time frame of 5 to 10 years and within acceptable financial investment ratios.
• Taxonomy, as an upcoming international rating standard, imposes strong reduction of CO2 emissions to reduce/avoid environmental tax, including on residential units’ CO2 emissions.
• COVID’s first-ever mandatory confinement and expected new viruses with confinements in the coming decades, mean disposing of more space at home, to endure future weeks/months of possible isolation, whilst disrupting all other human activities sharing property space (hospitality, offices, retail, etc.).
• The recent surge of inflation and hike in interest rates mean eroded purchasing power and strongly reduced borrowing ability for the average residential occupier, who in parallel also needs to reduce cost of energy consumption and CO2 taxation.

We think a new model shall emerge to address this multidimensional reality radically modifying the old paradigm of real estate.

We believe there is tremendous value to be created by rethinking the traditional real estate sector practices.

Our investment strategy aims at solving 3 essential issues:

1. Decarbonization: Real Estate produces 40% of world’s CO2 emissions.
2. Energy Independence: Green and Renewable production and storage, aiming at 100% independence within 7 to 10 years.
3. Income Resilience: by diversification among thousands of tenants benefitting from Smart & Green constructions, offering very low or Near Zero real estate occupancy and consumption costs.

We aim at creating “best-in-class”, tangible real estate investment assets that are Resilient to tomorrow’s challenges:

• Resilient to climate and energy disruptions,
• economic and financial dislocations,
• demographic evolutions,
• pandemic emergencies,
• natural disasters like floodings and earthquakes.

This can be achieved through a systematic build-up of:

A.    Independent, resilient, tangible Smart & Green assets built and operated by our investment companies.

B.    Resilient cash-flows generating long-term secure income.

Getting to Decarbonated,  Resilient, Primary Need Investments : A Global Opportunity.

We aim at benefitting from competitive and resilient returns whilst playing an essential societal role in providing intermediate affordable housing and transforming traditional energy consumption to 100% renewable energy production and storage..

A)  RESIDENTIAL REAL ESTATE

Integrating intermediate and affordable housing with the entire variety of new housing forms and services.

Getting to Decarbonated,  Resilient, Primary Need Investments : A Global Opportunity.

We aim at benefitting from competitive and resilient returns whilst playing an essential societal role in providing intermediate affordable housing and transforming traditional energy consumption to 100% renewable energy production and storage..

Enhancing Cities and Residential Accessibility for All through the Development of Intermediate and Affordable Housing.

We own and develop an irreplaceable portfolio of mainly residential real estate developments in and around numerous cities in Belgium and Luxembourg. This portfolio of developments provide many thousands intermediate affordable residential houses and apartments to satisfy societal changes and provide access to sustainable and affordable housing to a large number of families and residents. France shall follow as a future market given its very property stock in Intermediate & Affordable Housing.

B)  OFFICE REAL ESTATE

The Office sector is undergoing a major revolution.

On top of Decarbonation and Green Energy criteria that are paramount for professional office investors and corporate occupiers, COVID has spearheaded a profound revolution in working habits and office space usage.

With the pandemic the need for remote working has dramatically accelerated digitalization, whilst it has revealed that old working habits of 5 days at the office were not an absolute necessity nor the best combination for a healthier life balance.

Corporate occupiers realized that office space had to be redesigned, as entire office floors and several meeting rooms remained unused for too much time, whilst employees had reticence in returning to the 5-days office presence.

We aim at benefitting from competitive and resilient returns whilst playing an essential societal role in providing intermediate affordable housing and transforming traditional energy consumption to 100%.

The barrier between “in-office” and “out-of-office” life is increasingly blurred by flexible working hours, remote working, pervasive digitalization, permanent social media interactions, and a constant flow of news and information.

Redesign of office buildings means:

• reducing office and meeting room space leased on a permanent basis,
• accessing shared premises like main reception with hotel-like services, shared meeting rooms and co-working space, food & drinks facilities, etc;
• the “look& feel” of the new space must be more informal, much less rigid and hierarchical, it has to call upon an attitude of collaboration and fun, embracing a culture of co-working, fluid team interactions, informal connections and conversations,
• installing comfort premises like coffee bar, cozy corners, fitness, meditation & yoga rooms, shower and changing rooms, bicycle storage, electric cars chargers, etc…

Next Day Capital Holdings has the knowledge and experience in the Office market “repositioning” segment, as follows:

• through one of its group affiliated companies it has driven a major real estate investment operation of the Deutsche Bank and The World Bank headquarters in Brussels (24,000 m2 office and retail premises and 198 parking). It was purchased from Tishman Speyer, one of the largest US developers and investment manager, in partnership with a major US private investment group and a private Scandinavian partner. After 3 years of “repositioning” work, the asset has been purchased by Amundi (one of the largest EU Investment Managers with 2 Trillion EUR portfolio ), generating a truly exceptional IRR and Equity Multiple;
• it is now working on a major repositioning operation of the Omega Court office building in Brussels (18,000 m2 and 200 parking, purchased from Cofinimmo; in October 2022, the largest office REIT listed on Brussels Euronext) in partnership with a Scandinavian Private Equity Fund and a private investor/operator.

 

Left picture: Computer rendering of Marnix Project redevelopment.