The Bouwinvest Dutch Retail Fund is an investment fund and open to institutional investors. The fund has a clear vision, focusing on real estate in the most important city centres and busiest high streets in the Netherlands (experience) and on local shopping areas for daily purchases (convenience). By focusing on these retail centres, a good geographical spread, and on expansion and revitalisation, we are very well placed to realise solid returns.
Clear vision on retail real estate
The trends dictating the future of the Dutch retail landscape are based around ‘experience’ and ‘convenience’. Shoppers are looking for experience, but convenience is central for daily needs. International and Dutch retail chains want to open large shops in the most important Dutch cities to offer their customers the experience they are looking for. At the same time, consumers want the convenience of picking up their daily shopping in accessible retail centres with sufficient parking. This is why we invest both in the main high streets in big population centres and in neighbourhood retail in smaller cities.
Low risk profile
Income must be both stable and predictable to realise long-term, optimal returns for our investors. Rent from our tenants provides a stable source of income. The fund has a high occupancy rate, reaching 95.6% in 2017, and has not dropped below 92% since 2010. The fund’s biggest tenants are strong brands such as Primark, Ahold Delhaize, C&A, Zara and Jumbo supermarkets.
Broad spread of invested assets
The Bouwinvest Retail Fund has a distinct and deliberate geographical spread as well as a spread across both experience and convenience retail. The bulk of the investment is in the urban belt encompassing the Big Four cities, of which Amsterdam accounts for 43%. Some 51% of the portfolio is invested in experience retail and 26% in convenience. The two sectors currently account for 77% of the total portfolio and the fund has the ambition to increase this to a minimum of 80%.
Strong in revitalisation and sustainability
We take a long-term view and strive to ensure our buildings keep their value. This means making sure our shops remain as attractive as possible for consumers. We work closely with our tenants, local authorities, developers and real estate agents. We also deliberately focus on optimising and revitalising existing shopping centres. By adapting older shops to the demands of today, we are creating attractive, modern and sustainable shopping centres that will continue to meet the needs of consumers and our tenants in the future. Sustainable buildings keep their long-term value. Our real estate remains an attractive investment and we contribute to creating a more sustainable society.
The Bouwinvest Retail Fund is a successful fund, and over the past five years has outperformed the IPD Netherlands Index for retail real estate. Bouwinvest booked a return of 6.7% in this period, with an IPD of 3.3%. In addition, the fund scores well on sustainability. The Bouwinvest Retail Fund is the third most sustainable fund when compared to its peers and has a GRESB four star rating.
‘The fund has structurally outperformed the benchmark over the past five years. And the attractive retail portfolio enables us to be positive about the future.’Collin Boelhouwer Director Dutch Retail Investments