INTERVIEW: AEW launches expansion drive in the Lowlands

AEW Europe is looking to expand its presence in the Netherlands and Belgium following its acquisition with China’s CIC of the Celsius retail portfolio.

After opening a new office in Frankfurt last June to deal with growth in Germany, fund manager AEW Europe is looking to beef up its presence in the Netherlands and Belgium. To spearhead this expansion, the company has appointed Patrick Meutermans, previously responsible for managing €1.5 bn of European retail assets with CBRE Global Investors, including the two Belgian properties acquired by AEW/CIC as part of the Celsius portfolio.

AEW and CIC acquired the Celsius portfolio for €1.3 bn in July from CBRE GI. It includes a 50% interest in the Wijnegem shopping centre and 100% ownership of the Waasland retail centre, two of the largest shopping centres in Belgium with 70,000 m2 and 33,000 m2 of GLA respectively.

PropertyEU: What are the main priorities in your new role at AEW Europe?
Meutermans: I am responsible for developing AEW Europe’s business in Belgium and the Netherlands as well as supervising the management of the existing assets under management. AEW Europe is looking to grow its platform in these markets as they benefit from increased liquidity and improving macro-economic conditions. Although based in Belgium, I will work closely with the various teams in AEW’s pan-European network of offices.

PropertyEU: Will your focus be exclusively on retail or on other sectors as well?
Meutermans: AEW Europe operates across all the real estate sectors and from core to opportunistic strategies. Whilst one of my main priorities will be to manage the Project Celsius assets in Belgium I will be involved in offices and logistics as well.

PropertyEU: What is the outlook for the Dutch and Belgian (retail) markets?
Meutermans: We believe there are now prospects for a reasonable expansion in the Netherlands and Belgium. Although downside risks exist, the outlook for retail sales continues to improve. Growth in the take-up of retail space is expected to follow, but with clear interest for prime retail space. Grade B areas may continue to suffer. In the Netherlands, where supply is more abundant, emphasis would be made on scaling up retail units, including redevelopment projects, in order to keep attracting retailers… and consumers. Whereas Belgium lagged behind in terms of shopping centre space per inhabitants it could catch up with a significant level of development in the pipeline in the medium or long term. Besides extensive developments in retail parks all this will impact the market in the coming years, resulting in a shift in rental levels and relocations.

PropertyEU: Do you have a set target for acquisitions in these markets? What does AEW’s existing €1.3 bn portfolio consist of (excluding the Wijnegem and Waasland assets)?
Meutermans: As stated, the growth will be a consequence of the market and its opportunities. At the same time, the establishment of a local presence is without doubt aimed at growing the business in those regions. AEW Europe has already invested in Belgium and the Netherlands on behalf of its clients and will continue to offer them opportunities in these markets.

PropertyEU: The Dutch market is currently hot and competition for assets is fierce. How will AEW Europe deal with this in its bid to expand the business?
Meutermans: AEW has demonstrated its ability to source attractive deals in markets such as the UK, France and Germany where competition is arguably even fiercer. Through our extensive network of relationships and our reputation for executing transactions efficiently we expect to be able to do the same in the Dutch market as well.

PropertyEU: What are your interests outside the office?
Meutermans: Anything that can involve my family … travelling, city trips, a good movie, going out for diner… simple things that add quality to life.

PropertyEU: What are your 3 favorite buildings in Europe?
Meutermans: In general any form of property can be intriguing and there are of course plenty of buildings with iconic stature or with specific features that intrigue or inspire because of their architecture and design, their nature, their impact on cities and landscapes … Eiffel tower, Atomium, Gherkin, Antwerp Court House or the new Zaha Hadid Port House, ING House…

What tends to intrigue me in properties is solutions they can provide or the way they can improve or brighten daily life, through their form, location, flexibility, design, etc.
On a personal level, I like to visit Wijnegem Shopping Center and Covent Garden in London, an example of how real estate has over the centuries contributed to a city in different functions.