Pan-European retail property fund VastNed Retail has acquired 17 shops in Spijkenisse, near Rotterdam, for 13.1 million including purchase costs.
The acquired shops are located in the city center of Spijkenisse, a growth town of currently some 75,000 people. Spijkenisse's center for shoppers is the Stadshart Spijkenisse (www.winkelhartspijkenisse.nl) comprising approx. 200 shops. Part of these shops is in covered shopping courtyards.
Most of the 17 shops acquired by VastNed Retail are leased to national retail chains such as Dolcis, Prénatal, Adam and Steps. The total lettable floor area of the 17 shops is approx. 2,850 m², and the annual rental income is approx. 0.9 million. The seller is ING REIM. This transaction has been concluded at a net initial yield of approx. 6%.
Reinier van Gerrevink, VastNed Retail's CEO: "I am very optimistic about the retail market, both in terms of leasing and investment. At this point in time, strong retailers are looking for competitive shopping locations. With our portfolio of retail properties, located mostly in city centers, we are able to fulfill that need, as evidenced by recent lettings in our portfolio. These are not only new leases, but also existing tenants wanting to hold on to prime locations.
"A good example is a recently renewed five-year lease with British fashion retailer Top Shop on its shop at Istaklal Caddesi 34, resulting in rent increase to 75% above the former level.
"The investment market is also offering attractive opportunities. Our conservative debt ratio of approx. 40% and our strong cash position allow us to act fast when good acquisition opportunities arise. With this approach, we have acquired almost 130 million in new investment properties over the past 12 months. Our latest acquisition is very welcome as it contributes to the direct investment result per share immediately upon transfer."
Source: VastNed Retail