No sub-prime effect in the Belgian retail warehouse market
13 Dec, 2007, Brussels
It only took a few days before ‘credit crunch’ became a common idiom in every language across the globe, with the crisis in the sub-prime market getting on both American and British investors’ nerves.
While many declare the state of emergency, one thing is for sure: the Belgian retail warehouse investment market knows no crunch at all, as it keeps the investors’ optimism going.
This became clear at the last edition of the Mapic, where many investors confirmed their interest in that segment of the Belgian market.
Looking at the fundamentals, that is not much of surprise: a high demand from peripheral retailers; rents way below the international average; a strong growth potential, and yields ranking among the best, against the international competition as well as in comparison with other segments, are things investors are keen to hear.
Next thing you know, Cushman & Wakefield closes four major investment transactions in the last two weeks.
The 29 stores behind LSI Retail, LSI Projects and Immatov have been taken over by Ascencio, for a total of 31,6 M€. This portfolio had already been sold last year, through C&W, to London & Stamford Investors.
Intervest’s Messancy Outlet Center has been sold to Henderson Global Investors for a total of 12 M€. As the amount of outlets owned by Henderson across Europe increases, the decision has been taken to put Messancy back on the map.
The 21 stores in NV Pegasus’ portfolio, mostly leased to Heytens have been sold to Intervest, for a total of 19,5 M€. C&W had already been involved in the sale of this portfolio to Rockspring back in 2003.
The shares of the SA Retail Estates Luxembourg SA, with as sole asset the Sandweiler Retail Park, sold on behalf of Retail Estates to a fund managed by Rockspring.
But was this the last envelope to be pushed? Well, with three additional transactions in the immediate pipeline, for a total of 35M€, the answer is no. While details about these transactions will be made public in December, no doubt they already confirm the investors’ enthusiasm.
A good sign which may exhilarate expectations in terms of a top price for the top-quality B-Park in Brugge, a project C&W has an exclusive sales instruction for.
For more information, contact Koen Nevens (0032 2 546 08 63).
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