UBS Asset Management's Real Estate & Private Markets business announces that it has completed the first phase of the acquisition of the ‘Catharinasteeg’ development project in Leiden, the Netherlands, on behalf of one of its clients, from MRP Development, part of Meijer Realty Partners B.V.
Catharinasteeg represents a prime retail and residential investment opportunity, located in the historical heart of Leiden. The completed project, which is expected to launch to the market in summer 2017, will total approximately 7,800 m², comprising 10 retail units representing circa 6,000 m², plus 21 residential apartments occupying the remainder of the asset. Catharinasteeg is part of the so called Aalmarkt project and will create a new shopping circuit in the heart of Leiden.
Combining the original building’s monumental listed architecture, comprising 13 monumental buildings, with more modern designs, the scheme will act as a new retail destination for the city, linking the two main shopping streets, Haarlemmerstraat and Breestraat. Established international retail tenants operate in the area, with prominent brands such as Mango, H&M and Via Mio having already decided to relocate to Catharinasteeg once complete.
Construction of Catharinasteeg is being managed by MRP Development and is on track to receive a BREEAM Good sustainability certification once complete. The 10 retail units vary in size from 40 to 3,150 m² and can be sub-divided to suit a specific tenant’s needs, if required. The 21 residential units being built above part of the scheme's retail element will range in size from studios up to 3-bedroom apartments and will be easily accessible via three separate entrances.
Situated in the western part of the Randstad, Leiden is a historical university city and represents an attractive mixed-use investment opportunity with limited retail vacancies in the city centre and high demand for residential property, owing to both its dense population and appeal with tourist visitors.
Ward van de Braak, Head of Real Estate Nordics & Benelux, commented: “This unique investment opportunity comes shortly after our acquisition of the A-Factorij office asset in Amsterdam and represents our second investment into the Dutch market in the past six months. Catharinasteeg will deliver us with a mixed-use development in turn-key condition located in one of the Netherland’s most popular historical cities, making it a strong diversifying addition to our Northern European portfolio. The retail element of the asset is already nearly fully let, despite being not yet complete, illustrating the demand for high-quality space on Leiden’s high street. We look forward to commencing marketing of the residential units over the coming months, and expect to launch the completed project just after the summer holidays of this year.”
Bart Meijer, CEO of MRP, stated: “This inner city development, comprising the redevelopment of a great number of monumental buildings, is unique for the Netherlands. We are not only restoring and upgrading all these monumental buildings, but also improving the retail structure within Leiden. With Catharinasteeg, we are creating a new shopping circuit and a real heart in the inner city. The Catharinasteeg is a prime example of creating value for the citizens, visitors and retailers and will definitely improve the position of Leiden as a retail destination. Together with amongst others, the Catharinasteeg and the redevelopment of the post office building in Utrecht, MRP has built a very strong portfolio in inner city monumental development projects."
Maarten Stam, development manager at MRP added: “We are very happy with the tenant mix that fits in perfectly in the fashion, food and lifestyle concept we had in mind. We have acquired a very interesting mix of existing and new international fashion brands and successful, local food and fashion formats. We strongly believe that this mix of innovators and proven retail brands in a unique historical ambiance will be a determinant for inner city strength and the long-term value of projects."
