Wereldhave focuses on convenience shopping centres in the Netherlands that are dominant in their catchment area. The Dutch shopping centre portfolio consists of sixteen shopping centres in Amersfoort, Arnhem (2), Capelle aan den IJssel, Dordrecht, Eindhoven, Etten-Leur, Heerhugowaard, Hoofddorp, Leiderdorp, Maassluis, Nieuwegein, Purmerend, Roosendaal, Rijswijk en Tilburg (2). Wereldhave is implementing a refurbishment scheme for its Dutch shopping centres.
In the Netherlands, the retail sector is clearly on the way up. Retail sales increased by more than 2%; consumer confidence is increasing, as unemployment is low and house prices are soaring. Occupancy of the portfolio improved during the year from 95.3% to 95.8% and footfall in our Dutch centres went up by 1.4%, whereas the market average was a 0.4% decline. Leasing activity was high, with a total of
309 leases, rotations and renewals. Bankruptcies totalled to around 6% of annualised rental income over the year, but the impact on occupancy was almost fully absorbed by our strong leasing performance.
At December 31, 2016, occupancy in the Netherlands stood at 95.8%, which is 50 bps above the 2015 level of 95.3% (June 30, 2016: 95.2%). Like-for-like rental growth came out at 0.4%, equal to the index. Without the impact from bankruptcies, like-for-like rental growth would have been 1.4%. Large ackage deals contributed to the leasing success. Notable deals were signed with Grandvision (11 shops), Jumbo (4 La Place restaurants and 3 supermarkets) and the re-start of the Adam and Mc Gregor stores (11 nits) and MS Mode (8 stores). In Tilburg, a lease was signed with Hudson’s Bay for 20 years, the store to be opened among the first five HBC stores in the Netherlands in Q3 2017. New leases (excluding turn-over leases) are generally at or above the estimated rental value and annual renewals at or slightly below.
However, after a bankruptcy tenants often demand lower rents to facilitate the re-start. In such cases, turnover clauses were added. This provides Wereldhave with valuable insight in the turnover of the tenant, but also works as a long-term compensation mechanism for temporary landlord support. It perfectly fits with Wereldhave’s tenant approach as a mutually beneficial partnership to develop the success of the shopping centre.
In the Netherlands, works for the renovation of the middle part of the shopping centre in De Koperwiek in Capelle aan den IJssel started in December 2016. In Tilburg, the construction of the Hudson’s Bay
started in October 2016 and the department store is planned to open its doors in Q3 2017. In Maassluis, the zoning plan for the expansion of the Koningshoek shopping centre with 5,000m² was approved. Works started in November 2016.
In Arnhem, plans for the redevelopment of the Presikhaaf shopping centre are in the final design stage. Among others, Aldi signed as a new food grocery anchor tenant. Plans for the extension of the Leiderdorp shopping centre Winkelhof have been put on hold; current prospected yields of the extension plans are below requirements. The extension of the Sterrenburg shopping centre in Dordrecht is still in the preparatory stages of development and not yet committed. We identified at least € 10m land banking positions in the Dutch portfolio to be sold, where residential property will generate higher returns than retail.
BREEAM & SUSTAINABILITY
BREEAM design certificates were obtained for the shopping centres in Purmerend and Maassluis, a BREEAM in use certificate was obtained for Hoofddorp. In 2016, 4.671 solar panels were installed in Arnhem, Hoofddorp, Leiderdorp, Purmerend and Etten-Leur and plans were made to install well over 736 solar panels on the rooftops of two other centres in 2017.