23 March 2016
The Bouwinvest Retail Fund outperformed the benchmark IPD Netherlands Annual Property Index by 1.5 percentage points last year, reflecting the quality of its portfolio in the most attractive shopping locations. The Fund generated a total return of 5.3% compared with 3.8% for the index. The Retail Fund also beat IPD’s Dutch market multi-year averages with a total return of 5.5% for three years and 5.9% for five years, both well above the average returns of 2.4% and 3.7% respectively for the index.
Having the right product in the right location
The indirect property return was the main driver of the Fund’s total returns, reflecting the Fund’s strategy of investing in the right buildings in the right location. “A selective acquisitions policy and active management of assets are key to generating good profits,” said Collin Boelhouwer, Head of Retail Asset Management.
The Bouwinvest Retail Fund’s investment strategy has two key strands: targeting prime High Street locations in the largest cities in the Netherlands, where there is a vibrant and dynamic environment beyond the retail offering, and also accessible shopping centres that consumers use for their convenience purchases.”
Work to be done
The changing retail environment demands that active investors listen to the needs of tenants and consumers. “Bouwinvest has been active in redevelopment and in regeneration through this portfolio for many years,” said Collin Boelhouwer. “We are confident about the future of retail property and we will keep investing in our existing projects as long as they fit within the strategy of our Retail Fund.”
Last year, the Fund completed the renovation of Nieuwendijk 196 in Amsterdam, which is occupied by Zara and JD Sports, as well as upgrading the Westerhaven shopping centre in Groningen. The redevelopment of Damrak 70 in Central Amsterdam, which will have C&A and Primark as tenants, is the main project planned for completion in 2016.