NSI expands its retail portfolio by acquiring Zuiderterras in Rotterdam (NL)

Nieuwe Steen Investments N.V. (NSI) has acquired Zuiderterras, part of the shopping center Zuidplein in Rotterdam, from IVG Institutional Funds GmbH.

NSI's stake in the largest covered shopping center in the Netherlands increases to over 30% through the acquisition. The purchase price for Zuiderterras amounted to €24 million and the transfer of ownership took place on December 28, 2010.

Zuiderterras, now acquired by NSI, comprises eight stores, e.g. Media Markt-Saturn and Bristol, with a combined retail surface of over 10,000 m² and an underground car park. Zuiderterras is almost fully let. Recently, a number of tenants prolonged their leases and this results in an average weighted duration of the leases of six years.

Rental income is approximately €1.8 million per year which leads to a gross initial yield well above NSI's target for shopping centers of 7%. Therefore, the acquisition is a solid reinforcement of NSI's retail portfolio. Furthermore, NSI can add additional value to the acquisition through its own pro-active property management.

Shopping center Zuidplein in Rotterdam with its 55,000 m² retail surface and 155 stores is the largest covered shopping center of the Netherlands. It attracts 12 million visitors annually and surveys have shown that these visitors are satisfied to a level well above average. NSI already owned part of shopping center Zuidplein with amongst others a 3,500-m² Albert Heijn super market prior to the acquisition of Zuiderterras. By acquiring Zuiderterras NSI realises a more cost efficient management and improves the possibilities to retain existing tenants and attract new tenants.

Johan Buijs, CEO of NSI: "The acquisition of Zuiderterras obviously strengthens our position in the shopping center and fits our strategy of investing in shopping centers with a retail surface of at least 10,000 m².

"We remain enthusiastic about the possible combination of NSI with VastNed Offices/Industrials and the advantages such a combination will offer to the two companies. The fact that we acquire Zuiderterras while having merger discussions with VastNed Offices/Industrials indicates that we will continue our strategy to build a mixed real estate portfolio that partly consists of retail while the other half consists of offices during 2011. We are convinced that only a mixed fund will be able to add value for its shareholders in the long run."

Source: Nieuwe Steen Investments N.V.

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