Wereldhave transacts €1.4b in 2014 expansion drive

Listed Dutch property group Wereldhave acquired €1.2 bn of assets and completed €200 mln of disposals in 2014 as it moved into a 'strategic growth phase' for its reshuffled European portfolio.

The growth came after a root-and-branch restructuring operation in the preceding years which saw the Amsterdam-listed company retreat from the US and the UK, and the rotation of 50% of its overall portfolio. It shifted its focus to shopping centres in Belgium, the Netherlands and Finland and to sustainable offices in Paris.

ACQUISITIONS
During 2014 the company added France as its fourth retail property market with the acquisition of six mid-sized shopping centres from Unibail-Rodamco for €850 mln. The centres are located in Argenteuil (Paris), Bordeaux, Le Havre, Strasbourg and two in Rouen. Wereldhave carried out a €550 mln rights issue to help fund the deal.

Commenting on these acquisitions during the presentation of its 2014 results on Thursday, Wereldhave said they 'tick all the boxes of our shopping centre investment criteria'. Since the transaction was announced in mid-October, the assets' occupancy rate has remained stable at 91% to 91.2%.

In the Netherlands, Wereldhave acquired shopping centre De Vier Meren in Hoofddorp during January for €147.5 mln. This transaction was followed by the acquisition of the remainder of shopping centre De Koperwiek in Capelle aan den IJssel for €61 mln.

Wereldhave acquired three shops directly adjacent to the Roselaar shopping centre in Roosendaal for €9 mln in April and part of the Kronenburg shopping centre in Arnhem was acquired for €26 mln in September, making Wereldhave the full owner.

In Belgium, Wereldhave took full ownership of the 11,000 m2 Kortrijk Ring shopping centre in Kortrijk, for €108 mln, and a single retail unit in another shopping centre for €4.7 mln.

DISPOSALS
Wereldhave sold properties in Belgium, France, the Netherlands and Spain in 2014 for a total of €200 mln. The bulk of the proceeds major component was the sale of the entire Spanish portfolio for €99.5 mln. Wereldhave’s portfolio was valued at €3.3 bn at end-2014.

RESULTS
Wereldhave posted a net profit of €26.9 mln over 2014 compared with €50 mln the year before. The direct result improved by 5.5% from €81.3 mln to €85.7 mln. The increase is mainly due to the acquisitions in the Netherlands and like-for-like rental growth.

The indirect result for 2014 amounted to € -58.8m (2013: €31.2 mln), largely due to the write-off of transaction costs in connection with the acquisitions in the Netherlands and France (- €41 mln), and fair value movements on derivatives due to lower market interest rates (- €8 mln).