REAL ESTATE – Dutch property investor DIM Vastgoed is considering selling its entire $505m (€380m) portfolio of US retail centres.
The company aims to profit from the "current exceptionally favourable sellers’ conditions in the US property market", the management and supervisory boards explained in a proposal to their shareholders.
"The proceeds of the sale may be significantly higher than the value determined by the current ‘going concern’ valuation method," the boards said. The sale must yield a net income per share of at least $21.50.
DIM Vastgoed, a listed company, established in 1996, is a property investment fund without its own organisation. Management and all operational matters have been outsourced. Its portfolio comprises of 20 retail centres in the US south-east.
In 2005, the investors Equity One and Homburg Invest acquired a combined share of 64%, which resulted in a limited shareholder liquidity in DIM’s stock. "This partly explains why the listed share price is lower than the intrinsic value of $21.24," DIM said.
DIM has been advised on the sale by CB Richard Ellis.
Meanwhile, ING Real Estate Investment Management said it has agreed to acquire the Stadtgalerie Heilbronn shopping mall development from ECE Projektmanagement for $100m.
ECE will realise, lease and provide long-term management for the retail centre, which is scheduled to open in the spring of 2008, ING stated.
The 13,000m2 Stadtgalerie Heilbronn is being constructed near the town centre, the company indicated. It will have three levels containing 70 shops, supported by 660 parking spaces and catering businesses.
According to ING, 90% of the retail space has already been leased.
ING Real Estate is an international property company, active in investment management, development and finance. Its business portfolio totals over $90bn. It has offices in 21 countries worldwide.
Hamburg-based ECE has developed, planned, realised, leased and managed shopping centres since 1965. Its 90 centres consists of 9,200 stores on 2.7m m2, generating annual sales of $10bn.