Retail Estates has expanded its investments in the Netherlands by purchasing three retail parks with 83 retail units and a total retail area of 134,580 m². This additional investment of €205.44m, including real estate transfer tax and notarial fees, provides an additional net rent on an annual basis of €13.44m. The initial yield on these rents compared to the total investment is 6.54% (gross initial yield 6.74%). The fair value of this investment amounts to €196.70m according to the valuation drawn up by real estate experts of Retail Estates.
The occupancy rate of these 3 retail parks has been greater than 99% for over 15 years. The retail parks at Cruquius (Haarlemmermeer) and Heerlen are among the top ten retail parks in the Netherlands. They significantly strengthen the quality of the Dutch real estate portfolio, which now represents a total fair value of €268.64m. The tenants are almost without exception chain stores of which 49% are internationally active and the rest are national players.
The investments are spread over the following locations:
1. Heerlen (Province of Limburg) Woonboulevard in Heerlen has more than 50 specialised shops and is one of the largest shopping boulevards in Europe. The park consists of two parts, Square 1 and Square 2, and has excellent accessibility from the A76 motorway. The A76 stretches from the Belgian to the German border, making the retail park accessible to German and Belgian visitors. The area serviced covers 1.3 million inhabitants. Heerlen 1 consists of 21 retail buildings covering 39,891 m², Heerlen 2 consists of 26 retail buildings covering 35,023 m².
2. Cruquius (Haarlemmermeer – Province of North Holland) Thanks to its large concentration of tenants, Cruquius Boulevard – with a surface area of approximately 35,000 m², 25 tenants and an attractive customer zone – is an absolute top location in the Netherlands. It is part of a shopping zone with a total retail area of 88,650 m². The property is situated in the immediate vicinity of large urban centres such as Haarlem, Hoofddorp and Amsterdam, as well as residential zones with the highest purchasing power in the Netherlands.
3. Zwolle (Province of Gelderland) This local retail park of 24,721m² with 11 tenants is located at the exit of the motorway near the city of Zwolle with its 125,000 inhabitants. It is the only retail park in the extensive region and represents stable value.
The transaction is being fully funded with bank financing. The debt ratio is expected to rise to around 59% on 31 December 2017.
