How Benkey creates value: from deal sourcing and value creation to returns

Not every property with vacancy represents an opportunity. We assess a combination of factors: location and accessibility, the technical condition of the building, the type of vacancy, the local office market, and whether there is a realistic prospect of finding tenants for the type of space the property offers.Locations outside the Randstad—cities such as Zwolle, Almere, Delft, Amersfoort, Apeldoorn, and Hilversum—are particularly attractive to us because rental levels are relatively low compared to Amsterdam or Utrecht, while tenant demand remains stable. In these cities, properties often come to market for the wrong reasons: an owner looking to sell, a technically outdated building in a strong location, or vacancy resulting from a departing anchor tenant.

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At the same time, we actively elevate the level of service for existing tenants. We continuously monitor tenant satisfaction, address issues quickly, and ensure that day-to-day management is well organized. This may sound obvious, but in practice, it is precisely what many owners fail to do—especially in assets that have been managed passively for too long. A satisfied tenant renews; a dissatisfied tenant leaves. We often see this in larger international firms that rely heavily on “spreadsheet management” and have lost direct contact with their tenants.

In addition, we reposition the building. This can involve adding an events space, introducing a coffee corner, modernizing the branding, or providing additional parking solutions. These are relatively small interventions, but they make a meaningful difference in how tenants perceive a building and often give it a clear advantage over competing properties in the area.

Where it adds value, we offer flexible lease structures—shorter contracts as an entry option, with the ability to expand—helping tenants get over the initial threshold and securing longer commitments once they are in place. The objective is always to extend the Weighted Average Lease Term (WALT) while maintaining or increasing total rental income.

At acquisition, we work with private financing provided by high-net-worth individuals and family offices. This gives us the speed required to act decisively when attractive opportunities arise—an advantage over parties that depend on longer bank approval processes. Because we typically acquire assets where value creation still needs to be realized, many of these properties are not immediately eligible for traditional bank financing.

Once a property has been optimized—higher occupancy, longer lease terms, improved building quality, and upgraded energy performance—we refinance on more favorable financial terms. This structurally reduces interest costs and enhances returns for investors.

Refinancing replaces the existing private debt with senior bank financing, a logical next step as the fund matures. It is clear that lowering financing costs across a large portfolio has a significant positive impact on the fund’s operating performance and, ultimately, its cash flow.

• a disciplined acquisition price;
• active value creation through improvements and leasing;
• refinancing the portfolio to reduce financing costs.

This forms the foundation of how our real estate fund is built. You don’t need to be a real estate expert to understand how this works. The principle is straightforward: acquire something that is undervalued, improve it with a clear plan, and either exit or refinance once the value has been realised.

Benkey has been doing this for over 15 years, and over the past two years within a fund structure—together with other investors—significantly increasing both our scale and impact. We apply this approach systematically, with a team of 25 professionals and a growing portfolio of 12 assets across the Netherlands.

In the next blog, Investment Manager Bram van Helden will go deeper into the practical side: how does property selection actually work, what instinct tells him when something feels right, and how does Benkey translate that intuition into a disciplined investment process?