Bouwfonds IM is putting together a targeted real estate investment portfolio focused on convenience shopping centres comprising one or more supermarkets and a cluster of convenience stores. Jaap Gillis, CEO Bouwfonds IM says: “The Netherlands is a stable investment market with a solid economic outlook. While the Dutch retail as whole is having difficult times, closer analysis by our research department, reveals food and daily household categories buck the overall trend in Dutch retail. Lease income is strongly backed by turnover levels and while retail turnover in non-food decreased during the financial crisis and subsequent years, retail turnover in the food category increased and continues to show sales growth. Therefore we strongly believe in this retail segment. The Bouwfonds Convenience Shopping Initiative” aims to invest 250 million euros in “Dutch Convenience properties” in the coming years. Dutch convenience shopping centres provide a strong investment proposition with an annual direct unleveraged return forecast of > 5%. Bouwfonds IM has started equity raising under institutional investors for this new initiative, for which they teamed up with ABN AMRO Real Estate Advisory”.

Based on its macro analysis of the overall trends in Dutch retail sales by category and types of location, Bouwfonds IM is proposing a Dutch retail property investment strategy focused on smaller shopping centres that meet the daily shopping requirements of consumers in their immediate catchment area. The new initiative will fully target carefully selected regions that show the best economic and demographic prospects.

Andy Kloppenburg, Director ABN AMRO Real Estate Advisory: “We see a strong appetite in the market for a niche retail investment strategy, yielding above average returns, realised by a dedicated leading investment manager”.

Bouwfonds Commercial Real Estate invests in office and retail properties situated at prime locations. Dynamic inner-city business and retail areas in smaller and larger cities are places where people want to shop, eat, work and live. These places will generate greater economic activity. Bouwfonds IM manages one of the largest portfolios in the Netherlands, with an investment value of €2.3 billion (84% retail and 16% offices).