Savills Investment Management has acquired a grocery-led shopping centre in Amsterdam from US private equity firm Lone Star for €51 mln.
The acquisition is the first Dutch purchase for Savills IM’s European Food Retail Fund (EFRF), which focuses on supermarket portfolios and neighbourhood centres with food retailers as anchor tenants, providing at least 70% of an asset’s rental income.
Situated to the west of Amsterdam, the Bos en Lommerplein complex comprises around 12,000 m2 of lettable floor area and 534 parking spaces. It was completed in 2005 and has recently been renovated. The still to be developed pavilion of approximately 100 m2 on the square is also part of the asset.
Edgar Hertog, country co-head of the Netherlands at Savills Investment Management, said: ‘This shopping centre is located in a prominent and central location in Bos en Lommer - the economic and social heart of Amsterdam West and is the first Dutch acquisition for the EFRF fund. The centre offers a good mix of strong tenants such as Q-Park, Albert Heijn, Vomar and KFC. The stability and long-term income stream make this a very good addition to the Savills IM European Food Retail Fund.’
Jordy Diepeveen, head of acquisitions at Savills in the Netherlands, added: ‘Against the general trend of falling investment in retail, investors are showing confidence in the food and convenience segments, of which this neighbourhood shopping centre is a good example.’
Whereas the sector traditionally captured 5-6% of total European retail investment, this year that percentage has soared to 23%, he noted. ‘Food-anchored retail of institutional quality and especially of this size is difficult to find and acquire in Amsterdam. We are therefore very pleased that we were able to secure this asset on behalf of our client SIM.’
Savills IM was advised on the deal by Savills (commercial), McDevitt (underwriting), Drees & Sommer (technical), CMS (legal) and KPMG (tax). Lone Star was assisted by Loyens & Loeff (legal and tax).
