Listed Dutch property company Wereldhave disposed of two shopping centres for a combined amount of €74.2 mln in the first quarter of 2017.
In a trading update issued on Friday, the company said it sold the Stadshagen shopping centre in Zwolle (11,500 m²) and the Oosterheem shopping centre (11,700 m²) in Zoetermeer. The total proceeds of €74.2 mln is above the year-end 2016 book value. Both transactions are due to be completed in the second quarter of 2017.
Wereldhave said the two disposals are in line with Wereldhave’s objective for 2017-2019 of achieving a total €200 mln from asset rotation. ‘The two centres were sold as they did not fully match our strategic focus on dominant convenience shopping centres,’ the company said.
Gross rental income for the first quarter of 2017 amounted to €57.1 mln, down 3% on the comparable 2016 period. Wereldhave said the decline largely reflects the disposal of a cinema in Tilburg, the sale of a shopping centre in Geldrop and units that were vacated for refurbishments (Finnkino in Itis and Verrerie in Saint Sever).
The company said the four markets in which it is active – the Netherlands, Finland, Belgium and France - are in different stages of economic recovery. In the Netherlands, which suffered a deep recession, consumer confidence is now high and underlying retail markets are also showing signs of improvement, with new formats entering the market.
In Finland, after a long recession, the economy is gradually picking up, but international retailers are still reluctant to enter the market. In Belgium and France, government measures during the recession were modest and wage indexation continued throughout the recession.
However, economic forecasts are subdued and terrorism fears are dampening sentiment, resulting in protracted negotiations and slower letting in these countries.
Wereldhave reaffirmed its outlook for 2017 of a direct result between €3.40 and €3.50 per share. The dividend payout is to remain stable in 2017 at the current level of €3.08.
