Real Estate fund Eurocommercial Properties is seriously looking for new investments in Spain and Belgium. This was said by the chairman Jeremy Lewis. At this moment the company is not yet active in these countries.
‘In Spain we have made bids for several properties’, according to Lewis. But thus far none have been bought. Spain and to a lesser degree Belgium are getting more and more interesting now that the system of ‘rent based on sales’ is used more often.
‘In France, Italy and Switzerland it is very normal for a retailer to pay a rent related to the sales next to the normal indexed base rent,’ says Lewis, explaining the 85% weight of the fund in these countries.
Not this extra income is the most interesting but even more the information this gives. The return figures give a good insight into the financial state of the tenant and are very useful for making investment analyses.
Source: Financiële Telegraaf
