Rodamco Europe announces that, despite 110 million pipeline projects coming into operation in Q3, it has increased its pipeline portfolio by 600 million to 2.4 bn compared to the pipeline portfolio communicated on August 15, 2005 (1.8 bn).
This increase is the result of a careful review of the pipeline portfolio to provide a more comprehensive insight into Rodamco Europe's future growth based on renewed pipeline project classifications in line with current market practice. Furthermore, in order to reflect the current competitive market situation for high quality retail property, Rodamco Europe is conducting a valuation of its pan-European investment portfolio with the assistance of an international appraiser to this effect.
Based on the outcome of the pipeline portfolio review, Rodamco Europe's total pipeline portfolio of 2.4 billion consists of 1.1 billion (0.9 billion H1 2005) committed pipeline projects and 1.3 billion (0.9 billion H1 2005) uncommitted pipeline projects. Committed pipeline projects include stand-alone and/or extension rojects internally approved by the management board and externally ommitted to 3rd parties. The uncommitted pipeline includes stand-alone projects and/or extension projects internally initiated and/or approved, but not yet externally committed. Almost the entire pipeline (> 95%) is in the retail sector. The Theoretical Gross Rental Income (TGRI) for the committed pipeline portfolio is estimated to be over 90 million. For the uncommitted pipeline projects, Rodamco Europe expects at least 100 basis points return over the standing portfolio yield. Projects included in the pipeline are expected to materialize in the short to mid term (2-5 years), of which 60% is expected to come into operation in the coming 3 years.
CEO Maarten Hulshoff comments: "The outcome of our pipeline portfolio review clearly illustrates the strength of Rodamco Europe's total pipeline portfolio and is in line with our growth strategy which is based on acquiring and enhancing dominant shopping centers in key European cities. Rodamco Europe's pipeline portfolio is a strong growth engine for our standing investment portfolio in combination with our access to new investment projects. Good illustrations of this are previous pipeline projects that have come into operation such as Parquesur in Madrid, Spain and Piazza in Eindhoven, the Netherlands."
Pan European valuation
Given the continuous investor appetite for top quality retail property investments across continental Europe, as reflected in sustainable yield compressions, Rodamco Europe has decided, for its upcoming Q3 and Q4 reporting, to assess the value of its investment portfolio through an international appraiser. In view of the increased cross-border investment flows and yield movements across Europe, Rodamco Europe has appointed one international appraiser to carry out the review of the Pan European investment portfolio based on one uniform valuation method. Rodamco Europe will make further announcements if and when appropriate.
Source: Rodamco Europe