Bouwfonds IM has revealed plans to assemble a real estate investment portfolio worth €250 mln focusing on Dutch convenience shopping, including shopping centres comprising one or more supermarkets and clusters of convenience stores.
Bouwfonds IM has teamed up with the real estate advisory unit of Dutch bank ABN Amro to raise equity from institutional investors for this new initiative, the company's CEO Jaap Gillis (pictured) said.
'The Netherlands is a stable investment market with a solid economic outlook. While Dutch retail as a whole is having difficult times, closer analysis by our research department reveals food and daily household categories buck the overall trend in Dutch retail.'
Dutch convenience shopping centres provide a strong investment proposition with an annual direct unleveraged return forecast of more than 5%, he added.
Based on its macro analysis of the overall trends in Dutch retail sales by category and types of location, Bouwfonds IM is proposing a Dutch retail property investment strategy focused on smaller shopping centres that meet the daily shopping requirements of consumers in their immediate catchment area. The new initiative will target selected regions by economic and demographic prospect.
'We see a strong appetite in the market for a niche retail investment strategy, yielding above average returns, realised by a dedicated leading investment manager,' said Andy Kloppenburg, director ABN Amro Real Estate Advisory.
Bouwfonds Commercial Real Estate invests in office and retail properties situated at prime locations. Bouwfonds IM manages one of the largest portfolios in the Netherlands, with an investment value of €2.5 bn (84% retail and 16% offices).
