Belgian Retail Estates invests extra 100 million in Netherlands

Belgian retail investment fund Retail Estates continues its Dutch expansion, buying 56 stores for 97 million euros. Its total Dutch investment now stands at 422 million, for 218 properties.

Woonboulevard Breda

The lion’s share of the new acquisition sits near the Belgian-Dutch border, as 31 of the 56 stores – totalling 39.932 sqm – are located in retail park Woonboulevard in Breda. Sixteen others are in a retail park in Naaldwijk (near Rotterdam), nine others are separate stores in Zaandam (near Amsterdam). All 56 stores currently have leasing contracts, generating an annual net rental income of 6.79 million euros.

The total acquisition price for the 56 stores (and a floor of offices in Naaldwijk) amounts to 91 million euros, the rest of the sum is a transfer tax. 40 million has been financed with a loan, the remainder of the amount can either be paid in new shares or in cash – it is up to the sellers to decide. In the latter case, another loan would be started.

After this new investment, Retail Estates sees its portfolio in the Netherlands grow to 218 properties for a total investment of 422 million euros. The fund only started its Dutch expansion in 2017, investing mainly in retail parks throughout the country. All countries put together, the portfolio now edges near the milestone of 1,000 properties.