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Portfolio developments 2016 in perspective

Portfolio composition at year-end 2016:

  • 47 Dutch retail properties

  • 209,979 m² of lettable floor space

  • Total value of investment property of € 778 million

Diversification guidelines and investment restrictions

During the financial year, the Fund adhered to its diversification guidelines and investment restrictions.

Diversification guidelines

Current portfolio


≥ 80% of investments invested in high street retail and district shopping centres

95.9% in high street retail and district shopping centres


≥ 90% of investments invested in low or medium risk categories

95.9% in low and medium risk


Investment restrictions when the total investments of the Fund are > € 750 million


< 15% invested in single investment property

There is one investment property exceeding 15%

Compliant with remark (*)

< 10% invested in non-core properties (non-retail investment properties)

0% concerns non-core Retail properties


No investments that will have a material adverse effect on the Fund’s Diversification Guidelines.

There have been no investments in 2016 that have a material adverse effect on the Fund's diversification guidelines


Restrictions on (re)development activities < 5% of the Fund's total investment portfolio value


a. only Assets from the Fund's porfolio aualify for (re)development

In 2016 all (re)development activities were executed only for assets of the Fund's portfolio


b. the activities are exclusively targeted at optimising the quality of the portfolio

All activities were targeted at optimising the quality of the Fund portfolio


c. not allowed if it has a negative impact on the Fund’s Diversification Guidelines

There was no negative impact on the Fund's diversification guidelines


d. signed commitments relating to at least 60% of the rental income of the Asset is required

Commitment > 60%


e. (re)development is undertaken by and for the risk and account of Bouwinvest Retail Development, a wholly owned subsidiary of the Fund

All (re)development activities are undertaken by and for the risk and account of Bouwinvest Retail Development


f. all financial risks in connection with the work to be conducted as part of the (re)development will be contractually excluded by Bouwinvest Retail Development and transferred to external developers or contractors. Examples of such risks are: design and building risks and cost and planning risks

All financial risks in connection with the work to be conducted as part of the (re)development are contractually excluded by Bouwinvest Retail Development and transferred to external developers or contractors


g. zoning risks remain with the Fund, however starting the building activities in relation to a (re)development is conditional upon obtaining the relevant zoning permits

The building activities in relation to a (re)development were conditional upon obtaining the relevant zoning permits


(*) The management made an exception for the investment property Damrak, because of its unique retail location and it’s low risk profile

Investments, divestments and (re)developments

Due to the various ongoing and completed redevelopments, 2016 was once again a year of optimisation. The Fund invested a total € 31 million in new turn key acquisitions and redevelopments, which helped take the total value of the portfolio to € 778 million. All the new-delivered and redeveloped assets bolster either the ‘Experience’ or ‘Convenience’ portfolios.

New assets in the portfolio

Stadionplein, Amsterdam

The Fund acquired an eye-catching multi-use complex in the historic district of Amsterdam-Zuid, near the 1928 Olympic Stadium. The new development includes approximately 4,500 m² of retail space and is a very distinctive addition to the neighbourhood, thanks to its much larger shops, especially the Albert Heijn supermarket, and its superb access by road and public transport. The shopping centre opened in 2016 and focuses primarily on healthy foods, anticipating the growing demand for this type of product in its high-end catchment area.

Mosveld, Amsterdam

The Fund acquired the Mosveld shopping centre in the revitalised and increasingly popular southern part of Amsterdam-Noord. This centre has a substantial and growing catchment area, thanks to the ongoing transformation of this former harbour area, including numerous residential and cultural developments. The 7,700 m² Mosveld shopping centre focuses on shopping for daily goods. Anchored by two modern supermarkets (Albert Heijn and Deen), a central location in the neighbourhood and its own parking area, the centre offers all the convenience the Fund demands. Mosveld opened July 2016.

Ginnekenstraat 42, 57 and Ridderstraat 17, Breda

The Fund acquired three high street assets in Breda, a city in the strong urban conurbation known as Brabantstad. This region includes a number of the top retail cities in the Netherlands outside the Randstad conurbation. The retail units have been leased to retailer SIX and international retailers Adidas and Tommy Hilfiger. The total surface area of the three stores is 620 m2. The acquisition is a good fit with the Retail Fund’s ‘Experience’ strategy.

Rechtestraat 35, Eindhoven

In Eindhoven, the Fund acquired a retail property shop in the Rechtestraat, part of historic shopping area and the busiest shopping street after Demer. The building includes 440 m2 of leasable area and is rented to Dutch fashion brand Claudia Sträter. The acquisition is a good match with the ‘Experience’ element of the Retail Fund’s strategy. Eindhoven is the city with the largest retail offering in the province of Noord-Brabant and is among the Top-10 most attractive Dutch cities for shopping.

Completed redevelopments 

Damrak 70, Amsterdam

One of the highlights of 2016 was the official opening of the new Beurspassage on Amsterdam’s Damrak by Mayor Eberhard van der Laan. With an impressive ceiling made up of 450 m2 of glass mosaic tiles, a traditionally crafted terrazzo floor, giant art deco mirrors and gilded chandeliers, the Beurspassage is a splendid new icon in the Dutch capital. The new Beurspassage is also the crowning glory of the Nowadays redevelopment. Over the past six years, the Retail Fund has transformed the dated buildings at Damrak 70, 80 and Nieuwendijk 196 into hyper-modern locations for international retailers such as Zara, JD Sports, C&A and Primark. The project has a total leasable area of 27,500 m2, making it a very large project in the retail heart of Amsterdam and a major part of the city centre’s retail offering in this gateway to the city for millions of residents and visitors alike

Westerhaven, Groningen

This large-scale redevelopment has given a major boost to the Westerhaven shopping centre in Groningen. The current shopping centre offers over 14,000 m² of retail space and a parking garage for 800 cars. Westerhaven includes a traditional shopping street with tenants such as Hema and Kruidvat, plus a two-floor building with large-scale retail spaces. In 2015, the Retail Fund signed a long term lease with international retailer Primark for 7,000 m² of retail space in Westerhaven. In May 2016, Primark opened its only store in the northern part of the Netherlands and has already proven a major draw for both consumers and other retailers. In addition to the new lease with Primark, the Fund renewed its lease with Media Markt for 3,000 m2 of retail space. In 2017, international retailer Nike will open a new 1,000-m2 store in the former site of a C&A store.

Redevelopment investments

Molenhoekpassage, Rosmalen

To maintain the high quality of this successful shopping centre for daily goods and reduce the risk of vacancy, the Fund is upgrading and updating the look and feel of this centre and adapted the division of retail spaces to the demands of the current tenants. The Albert Heijn supermarket has added over 500 m² to its current retail space and the Fund has improved the routing within the centre as well as the accessibility and number of parking spaces to the new consumer demands. Thanks to these changes, combined with the arrival of a second supermarket (Aldi) nearby, the Fund expects Molenhoekpassage to retain its strong market position in Rosmalen, part of the city of ‘s-Hertogenbosch. Full completion is expected in Q1 2017. 

Goverwelle, Gouda

The Fund is investing in the upgrade and expansion of the Goverwelle shopping centre. The 1,000 m² extension will create space for the expansion of the Albert Heijn supermarket and for adding a second, complementary discount supermarket, plus additional parking facilities for 235 cars. Bouwinvest expects to complete this redevelopment in 2018.

Muntpassage Weert

The Fund is currently evaluating a potential upgrade of the Muntpassage shopping centre in combination with the letting of 3,500 m2 of vacant retail space following the bankruptcy of former tenant V&D. As part of this evaluation, the Fund is currently in negotiations with several retailers for units in the renovated shopping centre. If these negotiations turn out to be successful and the investment is in line with the Funds strategy, Bouwinvest expects to complete this redevelopment in 2018.

Secured pipeline

Centrumplan, Rosmalen

The investment Centrumplan in Rosmalen includes the acquisition of 17 retail units with a combined size of around 6,800 m2, which will form the expansion and completion of the current Rosmalen shopping centre. Construction is scheduled to start in Q1 2017 and delivery is expected in Q1 of 2018. The expected total annual rental income for the entire plan is estimated at around € 1.4 million upon delivery.

The main anchors are two supermarkets: Jumbo (around 2,000 m2) and the Lidl (around 1,800 m2), together with a number of daily grocery units. In addition, national retailers such as Kruidvat and HEMA are set to open stores in this new city centre area, together with a Brasserie located in a historical building. The average life of the contracts that have been signed is around 8.3 years from delivery.

This investment is a good fit with the ‘Convenience’ element of the Fund’s strategy, which includes investments in local shopping centres with a healthy catchment area, anchored by supermarkets, with ample parking facilities and a retail mix geared towards daily shopping needs

Broerstraat 52 and 52a, Nijmegen

The Fund acquires two high street units in the Broerstraat, the busiest shopping street in Nijmegen. The units are rented by retailer Men at Work B.V. and Nelson Schoenen B.V. and includes 613 m2 leasable area on the ground floor and 500 m2 basement area.  Nijmegen is among the Top-10 most attractive Dutch cities for shopping, so the acquisition is a good match with the ‘Experience’ element of the Retail Fund’s strategy.


Assets that do not fit our strategic requirements regarding Experience or Convenience because of their location, size or economic outlook will be sold. In line with these divestment criteria, we concluded the sale of the 2,100-m2 Kop Van Zuid asset in Rotterdam in early 2016.

Optimising the risk-return profile

In terms of risk diversification, at least 90% of the investments must be low or medium risk.

The actual risk allocation as at year-end is shown in the figure below. Every year, all properties are assessed separately. In 2016, the Fund was classified as at least 90% low and medium risk and as such was consistent with the framework and Fund conditions.

Portfolio composition by risk category based on market value

Portfolio diversification

The Fund’s diversification strategy is based on the belief that the future of retail real estate will be determined by two very distinct segments of the market: high street shopping areas that offer consumers a distinctive Experience and district shopping centres or solitary supermarkets that provide very high levels of Convenience. In addition to this, the Fund’s strategy is focused on active asset management aimed at optimising the portfolio and keeping it as a future proof as possible.

Portfolio composition by strategy as a percentage of market value
Regional spread of the Retail Fund portfolio based on market value

Tenant mix

The Fund’s portfolio includes a wide range of tenants by segment type. In 2016, the segments fashion and luxury goods increased to 53.2%, mainly due to investments and completed redevelopments. The segment ‘daily goods’ is also strongly represented, accounting for 26.8% of the total portfolio, in line with the Fund’s strategic focus on Experience and Convenience.

Portfolio composition by tenant sector as a percentage of rental income

Active asset management

Financial occupancy

While still challenging, the retail market showed signs of a cautious but slightly more robust improvement in 2016, on the back of a continued firming of the economy and healthy economic growth, plus a marked improvement in consumer confidence to pre-2008 levels. Thanks to highly active management of the portfolio, the Fund managed to increase the average occupancy rate up to 94.7% in 2016, compared with 94.2% in 2015.

Financial occupancy rate

Pro-active leasing

Lease contracts covering a total of 20,249 m² expired in 2016, and the Fund closed and extended leases for a total of 72,977 m² (€ 16.6 million per year). By the end of 2016, more than 51% of the total rental income expires after 2021.

Expiry dates as a percentage of rental income

The Retail Fund's top 10 tenants

The top ten tenants accounted for a total volume of 47.5% of the theoretical rent in 2016 (2015: 41.3%). Primark is now the Fund’s number one tenant, following the completion of the redevelopments in Westerhaven in Groningen and the Damrak redevelopment in Amsterdam.

Top 10 major tenants based on theoretical rent

Sustainable value

Bouwinvest also continued to improve the sustainability of the Fund, for example through the DUO energy labels for all the assets in the portfolio. These labels provide information and sustainability measures for both tenant and lessor. The Fund also sees redevelopment projects as the perfect opportunity to upgrade and enhance the sustainability of its assets, for instance by fitting solar panels and other measures. Making the Fund’s assets more sustainable helps to maintain or increase their value and improves their letting potential. As a result of the improved sustainability, the Fund was awarded GRESB Green Star status for the third successive year in 2016. We aim to retain this Green Star status in the years ahead and we will continue to implement existing initiatives and launch new ones to achieve our CSR ambitions.

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