Amsterdam-listed investor Wereldhave has agreed to acquire a portfolio of nine shopping centres in the Netherlands from its larger French peer Klépierre for a total of €770 mln.
Amsterdam-listed investor Wereldhave has agreed to acquire a portfolio of nine shopping centres in the Netherlands from its larger French peer Klépierre for a total of €770 mln.
The investment volume, excluding transaction costs, reflects a yield of around 6%.
The assets are being acquired from Dutch peer Corio which was acquired by Klèpierre in March 2015.
Wereldhave already has 10 shopping centres in the Netherlands and the transaction will propel it to the largest owner of mid-sized shopping centres in the country.
Commenting on the deal, Dirk Anbeek, CEO of Wereldhave, said it was 'a unique opportunity' that would shape the landscape in the Dutch retail sector. 'The acquisition immediately positions us as the leading specialist in mid-sized shopping centres in the Netherlands. We believe this is an opportune time to increase exposure to the Dutch retail market, given the improving macro fundamentals and attractive investment environment. In addition, we are convinced that we can add value to the portfolio by leveraging on our strong retail expertise and local knowledge.
Anbeek said the increased size of Wereldhave's portfolio would enable it to leverage its 'excellent' relations with its largest tenants. 'The presence of these retail chains in some of the new shopping centres is below the levels one could expect. On the other hand, we will also add several
new large tenants to our tenant base.'
The overall occupancy of the nine assets in the target portfolio is 94% compared to 97.5% for Wereldhave’s current 10 shopping centres in the Netherlands.
Nine new assets
Wereldhave intends to finance the acquisition from its existing debt facilities, an equity offering of up to 5.2 million shares to raise €250 mln and from 'asset disposals targeted over the next 18 months'. Completion of the transaction is expected before the end of the year.
The 236,000 m2 portfolio features nine shopping centres that generate a total of €44 mln in net annual rental income. One extension project is included in the deal.
The portfolio being acquired from Klépierre consists of Cityplaza in Nieuwegein; Middenwaard in Heerhugowaard; City Centre in Tilburg; In de Bogaard Rijswijk; Emiclaer in Amersfoort; Presikhaaf in Arnhem; Oosterheem in Zoetermeer; Sterrenburg in Dordrecht and Stadshagen in Zwolle.
Prior to its takeover by Klèpierre, Corio owned some €7 bn of shopping centres across Europe but became a takeover target when it failed to emulate the transition made by Klépierre and Unibail-Rodamco to focus on large dominant retail schemes in key European cities by shedding small to mid-sized assets.
Wereldhave, in contrast, has set out to become the largest mid-sized shopping centre owner in north-western Continental Europe. A major component of the strategy has been to pick up assets divested by Unibail-Rodamco, and now Klépierre-Corio.
Loyens & Loeff acted as tax adviser to Klépierre.
The transaction underscores recent assertions by market commentators that the long-dormant retail sector is next in line to benefit from the surge of investment activity in Dutch real estate.
Earlier in June it emerged that two Dutch private investors are in talks to sell a €2 bn retail portfolio in the Netherlands and Germany in what market watchers are already describing as ‘the retail deal of the century’.