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 and Tilburg (2). Wereldhave is implementing a refurbishment scheme for its Dutch shopping centres.
Results and valuation
Our portfolio in the Netherlands is beginning to see the benefits of continued economic growth, increasing employment and strong consumer confidence. Compared to the previous year, the number of retailer bankruptcies dropped significantly in 2017. In most cases, stores that became vacant were quickly filled, either with restarts or new tenants. The rental market has improved. Pressure on rents has decreased significantly compared to 2016, but the lagged effects of pressure in the fashion, household goods and electronics segments is still visible in our markets, particularly at restarts after financial restructuring.
In 2017, 231 leases were signed for a total of 85,323m². Like-for-like rental growth for the year 2017 amounted to 0.8% (equal to the index). Notable deals were with HEMA, Decathlon, Scotch & Soda and Specsavers. The latter signed a package deal to extend the lease for 6 shops and to open 7 new shops in our shopping centres. Footfall in the Dutch shopping centres increased by 0.4%, which is 1.1% above the market average.
The portfolio was valued at € 1,415.4m on December 31, 2017 (2016: € 1,451.5m). The decrease is mainly due to the disposals in Zwolle and Zoetermeer and a negative property valuation adjustment of € 24.5m. The value of the development portfolio stood at € 55.5m at year-end 2017.
In April 2017, the refurbishment of Eggert in Purmerend was completed. The centre is now fully let, with Albert Heijn and a Sports World as anchors to replace the former V&D department store. Footfall of the shopping centre increased by 9.6% in 2017. The redevelopment of Maassluis is nearly complete. The centre was extended by approx. 5,000m², with a new HEMA, Aldi and Action opening their doors in the fourth quarter. The final phase consists of the creation of a new shop for a third supermarket to the centre, Hoogvliet. It will be completed in the first quarter of 2018. The number of entrances to the centre diminished and the lay-out was fully revised. Footfall went up by 2.5% in 2017. The new HEMA format was launched in five stores in the Netherlands and Belgium, two of which in Wereldhave assets. The designated shopping “worlds” and a new food & beverage format are turning out to be a big success, with turnover and average ticket price some 50% above the old levels.
The first phase of the Tilburg inner city redevelopment scheme was completed in September 2017, with the opening of a Hudson’s Bay store and a new street, connecting the Pieter Vreedeplein with the Heuvelstraat, Tilburg’s shopping high street. HEMA opened its first store with the new format, with a significantly improved food & beverage offer and a redesigned lay-out. Many new retailers decided to open a store in Tilburg, with large names such as Decathlon and Scotch & Soda.
Plans are being prepared for the next phase, which is to redevelop the Emmapassage, connecting the Heuvelstraat to the new Primark next-door. In Capelle aan den IJssel, works for the first phase of the redevelopment of the Koperwiek shopping centre are making good progress. It consists of the construction of a parking garage for 280 cars and the creation of a new food court, which will connect both sides of the shopping centre. Completion of this phase is planned for H2 2018.The total redevelopment is planned for completion in 2019. In Arnhem, the refurbishment of the Presikhaaf shopping centre is also progressing well. Several anchors are upgrading their shop formats, in line with the refurbishment of the mall.
HEMA was moved to the middle of the shopping centre, to make room for two large supermarkets at the front of the shopping centre, Albert Heijn and Aldi. The third supermarket Coop will anchor the other end of the centre. Completion of the refurbishment and extension is on schedule for 2019.