VastNed will divest German retail portfolio after merger

If the merger between VastNed Retail and VastNed Offices/Industrial will succeed, the German retail portfolio will be sold, according to the new CEO of both VastNed funds, mr. Van Gerrevink.

Over the next few weeks Van Gerrevink will visit all large shareholders of both funds. If they advise against a possible merger between the two VastNed funds, the merger will not go ahead.

In his exposee to financial analysts Van Gerrevink pointed out that funds specializing in one market segment only do not have a future. Funds which have specialized in offices are suffering from investorÂ's confidence. Mixed portfolios may level out risks in unfavourable market conditions.

According to Van Gerrevink a merged VastNed fund will mainly aim for retail real estate with a 10% to 30% share of office real estate, depending on market conditions. Its main focus will be on the Netherlands, France and Spain.

VastNedÂ's interests in Belgium will probably not be affected by the merger, but it is evident that the German retail portfolio will be divested. Presently it consists of 34 retail objects with a value (ultimo 2001) of EUR 275 mln.

(source: VastNed)

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