Dutch-listed property fund VastNed Retail has announced an increase of over 6% in the value of its investment property portfolio over the final quarter of 2007. As a result, the company has said it expects a fourth quarter indirect investment result of around EUR 4.80 per share. The figures are based on the results of external appraisals at year-end 2007 in accordance with IFRS regulations.
Dutch-listed property fund VastNed Retail has announced an increase of over 6% in the value of its investment property portfolio over the final quarter of 2007. As a result, the company has said it expects a fourth quarter indirect investment result of around EUR 4.80 per share. The figures are based on the results of external appraisals at year-end 2007 in accordance with IFRS regulations.
The company statement, issued in advance of the publication of full-year results on 22 February, also said that the positive figures were mainly due to improved rent levels, which accounted for almost 60% of the increase. The statement added that based on this appraisal, the value of the property portfolio amounted to EUR 2 bn at year-end.
The strong results will come as good news to VastNed Retail shareholders following a EUR 1.15 bn takeover bid in November by IEF Capital, a joint venture of Bouwfonds Asset Management and Inflation Exchange Fund (IEF).
At the time, the board of VastNed Retail dismissed the bid, which amounted to EUR 70 per share, as ‘substantially below the true value of VastNed Retail shares’. However, IEF Capital was not deterred and said it planned to present the offer to all Vastned shareholders, including pension fund PGGM which holds 20% of the shares. Now, better-than-expected results, coupled with the recent announcement that Unibail-Rodamco is selling some Dutch retail assets could mean that IEF Capital may decide to shop there rather than at VastNed Retail.
