Redevco returns to acquisition trail

High-street retail specialist Redevco has returned to the acquisition trail with two purchases in the past week as part of a new, long-term investment programme.

On Monday, the company, which is one of Europe’s largest owners of high street properties, acquired a building on the main shopping street of Hasselt, Belgium for almost €15 mln. The deal reflects a yield of just under 5%.

Redevco purchased the building on Koning Albertstraat from Dutch real estate investment company ProWinko. The property with 1,295 m2 of retail space is fully occupied by brands S. Oliver and Mango.

The deal follows the acquisition last week of a property in Paris, in the 'Golden Triangle' retail district off Avenue des Champs-Elysées, from a private French investor. The property comprises a total of 1,670 m2 of mixed-use space. No financial details were disclosed.

The building in Paris is located on 38 rue François 1er and has strong redevelopment potential,
CEO Andrew Vaughan of Redevco said. 'Redevco is back in the market again with a significant amount of equity to deploy. We’re looking for investment opportunities that match our clear focus on retail properties which appeal most to tenants and shoppers as online commerce continues to transform the retail sector.'

Redevco has gone quiet on the acquisition front in recent years after a strategic review in 2011 led the company to reorganise its real estate portfolio to focus on those assets which it believes will both survive and flourish in the digital revolution that is currently sweeping the high street. Over the past four years, it has withdrawn from certain emerging markets including Turkey and Poland and divested all its non-retail assets.

Redevco is now targeting prime buildings on the principal shopping streets of attractive retail destinations across Western Europe as well as shopping centres and dominant out-of-town retail parks across the risk-return spectrum, Vaughan said.

Commenting on the latest purchase in Belgium, Vaughan said the property 'fits perfectly' into the company's investment strategy. 'We are scouring the market for fresh opportunities like this one and our recent investment in Paris.

Redevco is an independent, pan-European real estate investment management company specialised in retail property. The 450 assets under management are spread across the strongest retail concentrations in Austria, Belgium, France, Germany, Hungary, Luxembourg, the Netherlands, Portugal, Spain, Switzerland and the UK.