Annual Report • Apr 6, 2011
Annual Report
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| Results (x€ l million) | |||||
|---|---|---|---|---|---|
| Cross rental income | |||||
| Direct investment result | |||||
| Indirect investment result | (130.0) | (112.0) | |||
| Imestment result | |||||
| Balance sheet (x € 1 million) | |||||
| Investment properties | |||||
| Equity | 1,048.1 | ||||
| Equity VastNed Retail shareholders | 1,135.8 | ||||
| Long-term liabilities | |||||
| Average number of ordinary shares In Issue | 18,409,519 | 17,028,420 | 16,399,050 | 16.706,552 | 16,892,880 |
| Number of ordinary shares in issue (at year-end) | 18,495,220 | 18,265,213 | 16,417,526 | 16,362,097 | 16,876,183 |
| Per share (x€ 1) | |||||
| Equity VastNed Retail shareholders | |||||
| at beginning of year (including dividend) | |||||
| Final dividend previous financial year | |||||
| Equity VastNed Retail shareholders | |||||
| at beginning of yeor (excluding dividend) | |||||
| Direct investment result | |||||
| Indirect investment result | |||||
| Investment result | |||||
| Other movements | |||||
| Interim dividend | |||||
| Equity VastNed Retail shareholders at year-end | |||||
| Share price (at year-end) | |||||
| Dividend in cash | |||||
| or in cash | |||||
| and in shares charged to the share premium reserve Dividend yield as a percentage |
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| of equity VastNed Retail shareholders at beginning of year (excluding dividend) |
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| Solvency ratio (in %) | |||||
| Loan-to-value (in %) | |||||
ANNUAL REPORT 2010 VASTNED RETAIL N.V.
K.P. van der Mandelelaan 43a, 3062 MB Rotterdam PO Box 4444. 3006 AK Rotterdam Telephone +31 10 24 24 300 Fax +31 10 24 24 333 www.vastned.nl [email protected]
P" de la Castellana, 141, Planta 22B 28046 Madrid Telephone +34 913 60 07 92
RuedeRivoli118-120, F-75001 Paris Telephone +33 155 80 57 67
Uitbreidingstraat 18, B-2600 Antwerp-Berchem Telephone +32 32 87 67 67 www.intervest.be [email protected]
UstZerenSok. No:28, 1. Levent/Be^lkta? Istanbul Telephone +90 21 22 70 41 92
W.J. Kolff. chairman N.J. Westdijk, vice-chairman * P.M. Verboom*' J.B.J.M.Hunfeld Chairman remuneration committee Chairman audit committee
VastNed Management B.V. represented by: R.A. van Cerrevink, CEO T.M.de Witte, CFO T.T.J, de Groot, CIO
Quotation: NYSE Euronext Amsterdam ISIN:NL0000288918 Ticker: VASTN.NL
This is the English 2010 annual report. The Dutch version Is available on our website only in PDF-format. In case of inconsistencies, the Dutch version shall prevail.
Mondoy2Moy20)7 Press release first quarter results 2011'
Tuesday 3 May 2011 Analysts' conference call/webcast
Wednesday 4 May 2011 General Meeting of Shareholders
Friday 6 May 2011 Ex final dividend 2010 trading (Record date: Tuesday 10 May 2011)
Friday 6 May up to and including Friday 13 May 2011 Option period final dividend 2010
Monday 16 May 2011 Payment date final dividend 2010
Thursday 4 August 2011 Press release semi-annual results 2011 *
Friday 5 August 2011 Analysts' meeting/webcast
Tuesday 9 August 2011 Ex interim dividend 2011 trading (Record date: Thursday 11 August 2011)
Mondoy 29/August 20 H Payment date interim dividend 2011
Thursday 3 November 2011 Press release nine months' results 2011 *
Friday 4 November 2011 Analysts' conference call/webcast
r/7ursdoySMorch2072 Press release annual results 2011 '
Friday 9 March 2012 Analysts' meeting/webcast
After trading
Reinier A. van Cerrevink
Dear readers of this annual report,
2010 once again was an interesting year in many respects. There was uncertainty about the development of the Dutch and especially other European economies, growth or a lack of it, double dip or maybe not, uncertain financial climate, government cutbacks, interminable cabinet formations in the Netherlands and Belgium, encouraging consumers to resume spending. All of this of course is of key importance to our property portfolio.
Increasingly more news reports in the last few months of the past year were relatively positive. The Investment markets already appeared to be anticipating an economic recovery, at least In countries such as the Netherlands, Belgium and France. It Is as yet unclear where Spain stands In all this. Turkey Is once again booming, while countries such as Greece, Portugal and Ireland were hit hard by the economic crisis and there are rumours about the next 'victims', such as Spain and Italy. In that light, markets such as Spain appear attractive in terms of property acquisition prices, because we proceeded on the premise that the Spanish banks would end up In such difficulty that they would start selling property from their overfilled portfolios/loan portfolios. In spite of many attempts on our part, investment in Spain remained Just limited, because potential sellers are apparently able to sit out the situation.
In the Netherlands, Unibail-Rodamco has been in the process of reorganising their extensive property portfolio for some time and has been selling the relative smaller properties. We were able to profit from this. We acquired part of the Overvecht shopping centre in Utrecht and expect that plans for expansion will push this centre forward in terms of importance and development. ING REIM was also active as a seller. That enabled us to reinforce our existing position in the Zuidplein shopping centre in Rotterdam, on the premise that this shopping centre, which has been around for a long time and performs well, still has a lot of potential. In addition, we acquired a key position in the Spijkenisse city centre.
France is doing well, even though the process of realising market rents that are higher than current rents is proceeding appreciably slower in Lille than we had expected on purchase. The transactions that have been concluded so far have resulted in substantial increases in the rents of our shops in Lille, consistent with our assumptions a few years ago. The sale of the residential component of that property portfolio is proceeding steadily. In addition, several large-scale reletting transactions were completed, including a contract renewal with H&M in Nancy, where the Spanish fashion chain Desigual was welcomed as well.
The focus in acquisitions is more and more on becoming a high street shops fund. Currently, more than 55% of the entire portfolio already consists of high street shops. This does not mean that we are leaving other types of investments, such as shopping centres and retail warehouses, completely aside, but the crisis has shown that well-located high street shops are able to weather any kind of storm.
In Spain, the entire focus is on reducing the vacancy rate, which had increased significantly in a very short period of time, something that we are not used to at all. The Spanish team has been quite successful in addressing this issue. Many opportunities for enlarging the Spanish property portfolio at the bottom of the market were reviewed. This has led to some successes. One reason for this is that in view of the difficult economic conditions In this country, we are not planning to make major or excessive concessions to minimum yields. In addition, in carrying out various due diligences we also uncovered insurmountable problems of all kinds, as a result of which we have had to let various opportunities go by. We will be increasingly concentrating on high street shops in this country as well. In this context we acquired a bank branch of Banesto in the heart of Malaga in 2010.
It is and remains extremely difficult to grow the property portfolio in Belgium in a profitable way. There are few properties for sale, let alone attractive properties, and investments that we appeared to be able to acquire turned out to have a lot of snags, that ultimately stood in the way of completing a transaction. Proper due diligence once again turned out to be of major importance, in spite of how frustrating it can sometimes be not to be able to ultimately complete a transaction. For that matter, the existing Belgian property portfolio is doing very well.
And in Turkey we currently possess a portfolio comprising seven high street shops at the best possible addresses in Istanbul. As you know, in principle, we purchase empty properties for redevelopment. During the development, we approach potential tenants who are diligently looking for a good place to establish themselves in this city. Pursuing a process such as this does, however, mean that we do not receive any rent for a certain period of time. Our local management currently has another € 100 million in opportunities at the best possible locations in that city on its radar screen. However, we have decided that we first want to see more evidence of lettings at good rent levels before considering further investments. Expectations are high, and the first rent increase with a tenant who is extending his position, has since been realised on favourable terms. The Turkish economy is growing fast and it would seem that this is still going to be the case for many years to come. Our policy is to Invest a maximum of 10% of our overall portfolio, equating to € 200 million, in this country. Current Investments there amount to approximately half of that figure.
As you are no doubt aware of, VastNed Offices/Industrial entered into discussions about a possible merger with Nieuwe Steen Investments. These conversations have been struck in the middle of February 2011.
Additionally, after the assessment date it has been decided, under suspending condition of approval of the general meeting of shareholders, to conclude the joint operating agreement with VastNed Offices/ Industrial. In that event as well, the capacity of the organisation will remain more than sufficient, in part due to our ambition the coming years to realize an increase of 10% per year, on the basis of autonomous growth as well as making interesting acquisitions or forming effective combinations. We realise that
we are mostly a niche player, in view of the fact that other retail funds do not have as much of a focus if any - on high street shops.
We are relishing our task and the arrival of Taco de Groot as Chief Investment Officer will play a major role in this. He is an experienced professional in this business and has a very good track record. We are delighted to be able to introduce him to you for the first time at the next General Meeting of Shareholders. We believe that after experiencing a regression in the direct investment result per share in 2010, we will once again be on the upswing in 2011.
Kind regards. Reinier A. van Cerrevink, CEO
Average (financial) occupancy rate 100% less the average (financial) vacancy rate.
The market rent applicable for a particular period of vacant properties, expressed as a percentage of the theoretical rental income for the same period.
Contractually agreed rent for a particular property, taking the effect of straight-lining of lease incentives into account.
The gross rent recognised for a certain period after deduction of the effects of straight-lining of lease incentives.
Theoretical annual rent expressed as a percentage of the market value of the property.
Any compensation, temporary lease discount or expense for a tenant upon the conclusion or renewal of a lease agreement.
The estimated amount for which a particular property may be leased at a given time by well-informed parties who are prepared to make a transaction, who are independent and who act prudently and free from duress.
The estimated amount for which a particular investment property might be traded between well-informed parties who are prepared to make a transaction, who are independent and who act prudently and free from duress.
Net rental income expressed as a percentage of the acguisition price (including transaction costs) of the respective investment property.
Gross rental income less ground rents paid, less net service charge expenses and operating expenses attributable to the respective period, such as maintenance costs, management expenses, insurance, letting costs and local taxes.
Theoretical net rental income expressed as a percentage of the market value of the respective investment property.
100% less the vacancy rate.
Phasing the costs of lease discounts, rent-free periods and lease incentives over the duration of the lease contract.
The annual gross rent at a given time, excluding the effects of straight-lining of lease incentives and such, plus the annual market rent of any vacant properties.
The gross rent attributable to a particular period excluding the effects of straight-lining of lease incentives and such, plus the market rent of any vacant properties applicable to the same period.
The annual market rent of unleased properties at a certain point in time expressed as a percentage of the theoretical annual rent at the same point in time.
Introduction 14 Performance of the property portfolio 15 Strategy is Financing structure is 2010 Annual report and annual accounts 15 Dividend and reservation policy 15 Relationship with the shareholders 16 Corporate social responsibility 16 Composition of the Board of Management 16 Proposed merger between Nieuwe Steen Investments and VastNed Offices/Industrial 16 Termination of collaboration with VastNed Offices/Industrial 17 Composition of the Supervisory Board 17 Subcommittees of the Supervisory Board 17 Changes to the Supervisory Board 18 Profile ofthe Supervisory Board 18 Retirement roster is General Meeting of Shareholders 2011 19 Personnel 19 REPORT OF THE BOARD OF MANAGEMENT 20
Economy and markets 20 Property portfolio 22 The Netherlands 33 Spain 50 France 54 Belgium 70 Turkey 74 Portugal 77 Personnel and organisation 82 Sustainability 83 Responsibility statement Board of Management 86 Risk management 86 Financial state of affairs 88 Dividend proposal and dividend distribution 94 Terminationof collaboration with VastNed Offices/Industrial 95 Outlook for 2011 95
Direct and indirect investment result 102 Diluted EPRA Triple Net Asset Value 104 EPRA Net Yield and EPRA Vacancy Rate 104
Consolidated profit and loss account 106 Consolidated statement of comprehensive Income 107 Consolidated balance sheet as at 31 December 108 Consolidated statement of movements in equity no Consolidated cash flow statement 112 Notes to the consolidated annual accounts 113 Company balance sheet as at 31 December 145 Company profit and loss account 146 Notes to the company annual accounts 146 Other information 150
Investment properties in operation 178 Other investment properties 196
VastNed Retail N.V., founded In 1986, is a (closed-end) property investment fund with variable capital which makes long-term Investments In high street shops, shopping centres and retail warehouses, all with healthy occupancy levels and primarily in the euro zone. The shares have been listed on NYSE Euronext Amsterdam since 9 November 1987 and have been included in the Amsterdam AMX index since 3 March 2008. The shares have also been listed on the NYSE Euronext Paris since 20 December 2004. At the end of 2010, VastNed Retail decided to terminate its listing on the NYSE Euronext Paris. The last trading day was on 8 November 2010. VastNed Retail is part of the VastNed Group.
There is a clear link between investing in retail property and the retailers who use the shops for their business in the sense that in the long run, rent levels depend on retailers' profits. The retailers' success and the competitiveness of the locations are therefore major factors in determining the long-term success ofthe retail property investor.
VastNed Retail offers institutional and private shareholders an investment product that focuses primarily on retail properties. Investors are given the opportunity to benefit from the dynamics of retail markets with the aim to achieve a high total return. The total return consists of direct returns based on rental income plus indirect returns due to changes in value in the property portfolio. In the longer term, the objective is to increase the dividend per share through active management of the retail portfolio. The Board of Management strives for 10% increases of the convened capacity per year.
VastNed Retail aims to realise its objective by focusing on the following investment products and by using the following investment methodology:
At year-end 2010, VastNed Retail's property portfolio had a value of € 1,995.5 million (year-end 2009: € 1,861.4 million). At that date it had the following composition:
Broken down by the countries where VastNed Retail currently has operations, the composition is as follows at year-end 2010:
An attractive tax climate is an important factor in determining investment selection. VastNed Retail qualifies as a fiscal investment institution as meant in Section 28 ofthe 1969 Netherlands Corporate Income Tax Act. This means that no corporate income tax is due in the Netherlands. In Belgium almost all investments have been Incorporated in the property Bevak (Belgian REIT) Intervest Retail, which is also exempt from income tax. The French property investments are also almost entirely exempt from income tax under the SIIC regime applying in that country. The investments in Spain, Turkey and Portugal are subject to normal taxation. The option of applying the new Spanish REIT regimes (SOCIMI or Sll) has been investigated. At the moment these regimes do not appear to be sufficiently attractive to warrant implementation in the short term in view of the composition of the property portfolio as a whole.
The basic rule is that the loan capital used to finance the property portfolio is at the most kept to about 40% to 45% ofthe market value of the properties. A temporary deviation from this limit is possible if interesting acquisition or divestment opportunities arise, and provided the ratio between interest rates and the yield on the properties Is acceptable. VastNed Retail operates within the financing limits as meant in Section 28 of the 1969 Netherlands Corporate Income Tax Act. Furthermore, the organisation aims for a balance between short-term and long-term fixed interest periods in its financing. The basic position is that two thirds of the loan portfolio should have fixed interest rates with a weighted average term
of at least three years. To this end, interest-rate derivatives are used where appropriate. In order to limit refinancing risks, the aim is to have three quarters of the loan portfolio made up of long-term loans with a weighted average term of at least five years. Particularly in periods when the VastNed Retail share price trades at a premium compared to actual or forecasted net asset value, it may be attractive to issue new shares. In principle new shares will only be issued if there are good investment opportunities in the foreseeable future. The decision to issue or repurchase company shares is taken by the Board of Management, taking into account the limits and conditions to be set by the Supervisory Board.
VastNed Retail aims to avoid currency risks by investing primarily in the euro zone. When currency risks occur, their scope is limited by carefully matching the currencies of assets and liabilities on the one hand and income and expenditure on the other. Please refer to the Risk Management chapter on page 172 in this annual report.
VastNed Retail's dividend policy is aimed at distributing the direct investment result fully to the shareholders. The fiscal result as a minimum must be paid out in cash in order to comply with the fiscal conditions for fiscal investment institutions. The dividend is placed at the shareholders' disposal in the form of an interim dividend equal to 60% of the direct investment result for the first six months of the financial year plus a final dividend after the financial year has closed.
VastNed Retail pursues an active acquisition and divestment policy. New investment opportunities are constantly being assessed. When acquiring pipeline projects, the development risks are generally transferred to contracted project developers and building contractors. Letting risks may be accepted if the company is involved in the design and decisions regarding the tenant mix from an early stage. Acquisitions are only made if the market conditions are favourable, the risk-return profile is balanced and the capital ratios allow the transactions in question. In this context, acquisition opportunities are constantly being weighed against financial alternatives such as the repurchase of own shares. A review is carried out at least once every year to identify the properties In the property portfolio which no longer satisfy the desired risk-return profile. This can lead to divestment in some cases.
VastNed Retail pursues an active policy of assessing the risks associated with investing in property and taking appropriate action where necessary. In doing so, it distinguishes between strategic risks, operational risks, financial risks, reporting risks and compliance risks. A more detailed description of VastNed Retail's risk management can be found in the Report by the Board of Management chapter on page 86 and the Risk Managemen t chapter o n page 172 in this annual report .
Sustainability is a high priority for VastNed Retail. VastNed Retail actively implements its policy on sustainable business practices in its property portfolio. This is further clarified on page 83 in this annual report.
VastNed Retail actively manages its property portfolio; its aim is to have fully-fledged local management in place in the countries in which it has operations. With over 100 employees in total, VastNed Management in Rotterdam, VastNed Management Espana in Madrid, VastNed Management France in Paris, Intervest Retail and Intervest Offices, both in Antwerp, VastNed Management Deutschland in Frankfurt and VastNed Emlak Yatinm ve Ingaat Ticaret in Istanbul manage the investments of VastNed Retail and VastNed Offices/Industrial. VastNed Management has no profit objective, but provides the funds with a board of directors and management.
A cost allocation agreement applies to the partnership between VastNed Retail, VastNed Offices/ Industrial and VastNed Management. All costs incurred are allocated on the basis of the actual work done, without any mark-up for profit. VastNed Retail holds 67% of the shares in VastNed Management, while 33% are held by VastNed Offices/Industrial.
Keeping the management of properties in-house is the best way of ensuring optimum leasing to creditworthy tenants and proper care for the state in which the properties are kept. By carrying out as many ofthe commercial and administrative management tasks as possible in-house, the company comes into direct contact with the tenants and the property market, enabling it to respond effectively to market developments and to manage operating expenses in a responsible fashion. Technical management Is largely subcontracted to local specialists. Care is taken to ensure the properties are in an optimum state with an optimum value In relation to the returns for shareholders. This is done by carrying out maintenance and renovations on property investments in the portfolio and by selling properties that are no longer appropriate for the portfolio. The property markets in the different countries are subject to the legislation and regulations applicable in the countries in question. Local networks together with specialist knowledge ofthe local culture give the company the edge in the commercial operation ofthe properties. VastNed Retail aims to carry out its activities in the country itself wherever possible.
From left to right Jeroen B.J.M. Hunfeld, Pieter M. Verboom, Wouter J. Kolff and N. J. (Klaas) Westdijk
In spite of the fact that the impact of the credit crisis was still clearly felt in 2010 as well, a number of positive signals were discernable to the Supervisory Board during the year under review, including the once again rising property values and a recovery in the occupancy rate of the Spanish property portfolio. This was the subject of in-depth discussions by the Supervisory Board. The Supervisory Board held eight meetings in 2010 that were attended by the Board of Management; twice of these meetings took the form of a conference call. In the context of making sound decisions, the Board of Management always kept the Supervisory Board supplied with sufficient information in time. None of the members of the Supervisory Board was absent, or frequently absent, during its deliberations.
The subjects that were discussed in the Supervisory Board's eight meetings included the following:
the relationship with the shareholders;
aspects of corporate social responsibility, where relevant for the Company;
Rents continue to be under pressure due to current market sentiment. Property values, following two years of sharp declines, are once again rising. The latter is also reflected in the investments market, which is characterised by a high demand for retail properties and consequently high prices. It was striking that a significant number of transactions took place at prices that were difficult to justify for VastNed Retail. Up until now the crisis therefore has not resulted in any windfalls on a major scale.
Further to a meeting devoted to strategy, it was decided that VastNed Retail will specifically pursue the profile of a high street shops specialist, in view of the fact that experience shows that on average high street shops in strong city centre locations appear to be better able to withstand the impact of the economic crisis than other retail investments. This refinement of the strategy has been incorporated into the 2011 -2013 business plan. The Supervisory Board supports the Board of Management to realise an increase of 10% per year of the convened capacity.
The Supervisory Board reviewed the financing structure, which focuses on maintaining a relatively low degree of borrowing and a spread ofthe loans portfolio in terms of long and short term contracts and fixed interest rate terms. In addition, it was decided to enter the private placements market, which has been executed in 2010.
The annual report drawn up by the Board of Management includes the 2010 annual accounts audited by Deloitte Accountants B.V. The Supervisory Board is in agreement with this report and with the 2010 annual accounts and supports the proposal of the Board of Management recommending that the General Meeting of Shareholders adopt the 2010 annual accounts in the form as presented. The Supervisory Board also recommends that the Board of Management be granted discharge for the policies pursued in 2010 and that the Supervisory Board be granted discharge for the supervision conducted in 2010 on these policies.
The Supervisory Board, just like the year before, has had detailed discussions with the Board of Management about the existing dividend policy and the policy on reserves. Considerations included the extent to which equity could be strengthened by modifying this policy (for example, by reducing the pay-out ratio). The conclusion was that this would not lead to a significant reinforcement of equity and that modification of the dividend policy and reserves policy could damage the confidence of a number of shareholders who retain VastNed Retail shares specifically because of the attractive dividend yield. The Supervisory Board supports the proposal to continue the current policy, paying out the full amount of the direct investment result per share.
The fiscal result as a minimum must be paid out in cash in order to comply with the fiscal conditions for fiscal investment institutions. Part of the final dividend may be paid out to the shareholders as a stock dividend charged to the share premium reserve. An interim dividend will be paid in August based on 60% of the direct investment result per share for the first six months of the financial year. The final dividend will be paid in May of the following financial year, based on the total direct investment result per share ofthe previous financial year.
The Supervisory Board is able to agree with the proposal by the Board of Management that the following final payment per share should be made for the 2010 financial year:
This takes the total dividend paid out over 2010 to € 3.68 per share.
In one of the meetings of the Supervisory Board, the Board of Management explained the nature and frequency of contacts with shareholders. This is a subject that will be discussed at least once every year by the Supervisory Board.
The 2011-2013 Business Plan, which was approved by the Supervisory Board, comprises a number of initiatives that will be implemented over the coming years by the Board of Management regarding making the property portfolio more sustainable. The Supervisory Board believes that the 2011 -2013 Business Plan represents a suitable approach to this subject.
The Supervisory Board during the reporting year came to the conclusion that the Board of Management should be strengthened with a Chief Investment Officer and asked the nomination committee to initiate the selection process, which has since been completed and resulted in the appointment of Mr Taco T.J. de Groot MRE MRICS.
The proposel made by Nieuwe Steen Investments to VastNed Offices/Industrial would have had repercussions for VastNed Retail. The relevant implications were discussed by the Supervisory Board. The Supervisory Board has among other things decided not to pursue a proposal for merger with, or some other type of takeover of VastNed Offices/industrial, since this would affect the refined profile with its emphasis on high street shops.
At the end of February 2011, the Supervisory Boards of both VastNed funds in consultation with the Board of Management have resolved, subject to shareholders' approval, to end the joint management agreement at 1 January 2011. After termination, VastNed Retail will have an independent Board of Management and management organisation. The future composition of the Board of Management will be determined as soon as possible. The costs of the termination - budgeted at € 2.7 million for VastNed Retail - will be charged to the 2011 financial year.
The Supervisory Board is composed as follows:
The curricula vitae of the Supervisory Board members are set out in the chapter on Management and Corporate Governance included elsewhere in this annual report.
The Supervisory Board has three active committees: the audit committee, the remuneration committee and the nomination committee. These committees prepare proposals that are discussed and approved by the full Supervisory Board.
In 2010, the audit committee met on four occasions. The task of the audit committee is to advise the Supervisory Board in the area of finance. Topics addressed last year include financial reporting, budgeting, the role of the external auditor, tax issues/risks, compliance (inter alia with the Netherlands Authority for the Financial Markets (AFM)), IFRS, interest rate and financing risks, the impact of the credit crisis on both financing of property and property values, letting risks, catastrophes and liability risks, debtor risks, internal control, IT systems, legal risks and the follow-up of recommendations made by the external auditor as well as the audit findings presented by the external auditor. The latter did not result in any comments that are worthy of mention. The expansion of the range of available financing sources and the extension of the financing terms was explicitly discussed. This resulted in concluding a private placement in the amount of € 75 million. All audit committee reports were made available to all members of the Supervisory Board and were discussed at the following meeting of the Supervisory Board. Within the context of the audit committee meeting concerning the annual results, the audit committee held a brief meeting with the external auditor in the absence of the Board of Management. Mr Verboom is the chairman of the audit committee and Mr Hunfeld is a member.
The remuneration committee is set up at the VastNed Management level, given that the board members work for both VastNed Retail and VastNed Offices/Industrial, and their remuneration reflects the combined activities for both funds. The remuneration committee comprises Messrs. Westdijk (chairman) and Kolff on behalf of VastNed Retail and Messrs. Steenstra Toussaint and Breukink on behalf of VastNed Offices/Industrial. The task ofthe remuneration committee is to advise the Supervisory Board concerning the remuneration policy to be adopted for the Board of Management. The committee met on 2 occasions in 2010. Specifically, the salaries for the members of the Board of Management for 2011 were discussed, along with the extent to which the pre-defined objectives for 2010 were achieved. The remuneration committee also prepared the 2010 remuneration report, which will be discussed by the General Meeting of Shareholders on 4 May 2011 and which is included in this annual report.
The nomination committee is set up at the VastNed Management level, in the same way as the remuneration committee. The nomination committee met twice to discuss selections and appointments. Specifically, this led to the appointment of Mr Taco T.J. de Groot MRE MRICS as Managing Director and Chief Investment Officer, effective 1 September 2010. The Supervisory Board attaches a great deal of importance to the appointment of Mr De Groot, due to the fact that filling the position of Chief Investment Officer is of essential importance to VastNed Retail's growth strategy. Mr De Groot's curriculum vitae is contained in the chapter on Corporate Governance of this annual report.
Mr Wouter J. Kolff was reappointed as chairman ofthe Supervisory Board by the General Meeting of Shareholders in 2010.
The Supervisory Board profile guarantees that the Supervisory Board is composed properly, i.e. that the available knowledge and experience enable effective supervision ofthe management activities ofthe Company's Board of Management. This profile is available from the Company's website and copies may be obtained from the Company's offices. The Supervisory Board declares that all its members are independent, as defined in the Code.
The retirement roster for the coming years is as follows:
The articles of association stipulate that a period in office is limited to three terms of four years. VastNed Retail is hereby acting in accordance with the Code.
The agenda ofthe General Meeting of Shareholders on 4 May 2011 and the associated shareholder circular will be published in mid-March 2011. The General Meeting of Shareholders is taking place at a later date than previously. This is due to the legislated extension to the term for convening meetings.
The Supervisory Board would like to thank the Board of Management and the employees for their efforts and commitment to VastNed Retail during the year under review.
Rotterdam, 3 March 2011 On behalf of the Supervisory Board, Wouter J. Kolff, chairman
From left to right Tom M. de Witte, Wim Fleggen, Arnaud C.H. du Pont, Taco T.j. de Groot and Reinier A. van Cerrevink
This report discusses economic trends in 2010, the markets in which VastNed Retail operates, specific developments in our property portfolio, personnel and organisation, sustainability, risk management, the financial state of affairs and the outlook for 2011.
The economy in the euro zone recovered in 2010 led by Germany. The recovery was driven by export to emerging economies throughout the world and by the replenishment of stocks that were so drastically diminished after the 2008 crisis of confidence. 2010 was also the year of unrest in the peripheral economies of the euro zone. A massive crisis in Greece and Ireland put pressure on the euro. Although the euro countries have put in place a safety net for the countries within the euro zone that are not able to cope on their own, the danger of a new crisis in one or more of the euro countries has not yet abated. A new test of the resolve and solidarity of the euro countries is to be expected. Government budgets in almost all countries within the euro zone show major deficits and significant government budget cutbacks have been announced everywhere, with partial implementation already occurring in 2010. The lion's share of these budget cutbacks is expected to exert pressure on economic growth in the euro zone in 2011 and 2012. Now that inventories are back to their normal levels, it will become clear that the euro zone is heavily dependent on exports and therefore on economic growth in the emerging economies. These economies represent more than half ofthe world economy. This is also where the most important downside risk for the economic growth in the euro zone lies. Growth in the emerging economies is already high and that is creating signs of overheating here and there. Expectations for economic growth in the euro zone are therefore not high and are based on the scenario of moderate
economic recovery. It will take until 2012 or 2013 before the size of the economy in the euro zone will once again attain 2008 levels. Freely interpreted, this represents four to five years of stagnation in the euro zone. The strength of this recovery is, however, expected to significantly vary from country to country. The strong, forceful position of Germany as an export country has made that country the leading economy in the euro zone in terms of economic growth. Of the European economies outside the euro zone, the Turkish economy is doing very well. Many ofthe problems experienced within the euro zone are absent from the Turkish economy.
There are clear risks in relation to the scenario of moderate economic recovery for the euro zone. A marked decline in economic growth in the emerging economies has a clear impact on exports from the euro zone to these parts of the world and therefore on economic growth in the euro zone. There is a chance of deflation due to the possibility that a still lower rate of economic growth for an extended period of time will put the brakes on consumer spending. This checks economic recovery and could potentially lead to a new crisis. On the other hand, there is a chance that inflation will sharply accelerate due to the very large-scale stimulation of the economy by the central banks, higher taxes and possibly significant price increases due to the significantly increased demand for raw materials. High inflation and stagnation of the economy could result.
The four to five year potential stagnation ofthe economy follows a long period of favourable conditions for the retail market. Prior to 2008, retail sales grew as consumers were able to take on more debt as a result of rising house prices and falling interest rates. The retail property investment market gained tremendously in popularity since the early 1990s, which caused net initial yields to fall structurally. The drop in the risk premium for retail investments was also caused in part by the sharp fall in interest rates over the same period. This created additional demand for retail property, since investors were able to attract large amounts of low-cost loan capital to finance investments in retail property. The great popularity of retail investments among investors also impacted positively on new retail property developments. Many new projects were initiated and realised, but because ofthe long lead times involved in these kinds of development projects, much of this retail property has only come onto the market in the last few years or even still remains in the pipeline.
After a bad year in 2009, retail sales somewhat recovered in 2010. The drop in house prices is having a detrimental impact on consumers' debt levels and is making them even more cautious. As a result, consumers are now concentrating first and foremost on reducing their debt levels. Experience has shown that it can take a number of years to reduce debts to a level with which the consumer is comfortable again.
Online retail sales have been growing strongly for many years, and continued to grow since the crisis of confidence in 2008. The internet sales' share of total consumer spending consequently sharply increased. All retail segments are now selling well on the internet. The growth of online retail trade has therefore made it a formidable competitor to the high street. The reason for this is twofold: firstly, the rapid proliferation of broadband has increased the popularity ofthe internet, and secondly, online shopping has become far more widely accepted. Success factors are price competition, in-depth product ranges and convenience. Online shops with a strong brand name are doing well due to the high consumer confidence in these brand names.
Due to the effective stagnation ofthe economy in the euro zone, which is expected to last four to five years, the increased supply of retail space and the shift of retail demand to the internet, the demand for and supply of retail locations is very likely to change. Retailers will be taking a critical look at their store numbers and will start closing shops that do not produce certain levels of returns. However, there are also retail chains that are going the expansion route and that are in fact identifying opportunities for renting in sought-after locations in these times. The number of vacant units in locations that are less popular with the consumer has risen in 2010 and the expectation is that this number will continue to rise in the coming years.
The success factors in the retail property market remain unchanged and these are the location of the retail property and the success ofthe retailer. Other key success factors are the economic growth in the service area and growth in consumers' income levels. The demographic of the service area is also becoming increasingly more important. Larger cities have a more favourably structured demographic, making the economy in those cities generally more dynamic, which has the effect of especially attracting younger people. The city centres of larger cities also constitute a favourable platform for retail niches, which increases the appeal of these city centres to the consumer.
Differences in success factors determine the strength of a retail location and thus the performance of this retail location during economic downturns. A good quality property portfolio is resilient. In acquiring new retail properties, VastNed Retail focuses on a strong competitive position ofthe retail property within the service area, in other words on strong shopping areas. There is a strong preference for retail properties in city centres of larger cities. The long-time policy of making ongoing quality improvements to retail properties will continue to be pursued.
Investors too have a strong preference for retail investments. In particular, there is a great deal of interest in retail property of good to very good quality, which in turn caused the value of these retail properties to further increase. The total volume of transactions in the retail property investment market showed a marked increase in 2010 in comparison to 2009. The strong demand on the part of investors also caused the value of the retail properties held in VastNed Retail's property portfolio to increase in 2010.
As stated in the chapter on Profile and Strategy, the property investor depends on the tenants', i.e. retailers' results in the long term. These same tenants are dependent on the specific location of the retail property, which often is still affected by shortages. Turnover and profit figures in the retail trade sector are still under pressure due to the weak economy and increasing internet sales. This is causing tenants to look more closely at the rent they are expected to pay and the quality of the retail location.
VastNed Retail's property portfolio is primarily located in jurisdictions with protective tenancy laws. In general, properties have not been let at the highest possible rent levels. Along with long-term leases, this offers protection against drastically falling rental incomes. In addition to rent levels and the term of existing leases, the strength of VastNed Retail's property portfolio primarily lies in its emphasis on investing in high street shops in attractive city centre locations. These locations have the advantage that they are unique and generally have been frequented by the shopping public for generations. The cost structure of such investments is favourable as well in view of the fact that the maintenance of the public space located in front of the shop is not for the account of the shop's owner, but instead generally is the responsibility of the municipality.
The downward revaluation trend started in 2008 has reversed itself and VastNed Retail can once again take satisfaction from seeing the value of its property investments increase.
As regards the reporting on property in this annual report, the best practice principles formulated by the IVBN and EPRA sector associations were adhered to. In September 2010, VastNed Retail was awarded the Gold Medal Award by EPRA, confirming the fact that the 2009 annual report met the highest possible international standards. It is our ambition to continue to play a leading role in this domain.
As indicated in the introduction, the property portfolio for the most part comprises high street shops. These are shops that are generally located in attractive city centre areas and that are largely uncovered and located adjacent to public spaces. At the end of 2010, 55% of the value of the total property portfolio consisted of such high street shops. Investments are also made in small and medium-sized, locally well-embedded shopping centres (30%) and retail warehouses (14%). The remainder of the property portfolio (1 %) consists of other property investments, primarily apartments lain above the shops. At year-end 2010, the total property portfolio in operation comprised 572 properties (year-end 2009: 569) spread over six countries with a total lettable floor area of 693,176sqm (year-end 2009: 673,074 sqm). The book value of these property investments at year-end 2010 was € 1,995.5 million (year-end 2009: € 1,861.4 million).
One of the most important parameters for determining whether the property portfolio is performing well is the occupancy rate. The occupancy rate indicates to what extent investments match the needs of existing and potential tenants. The occupancy rate ofthe total property portfolio in operation at year-end 2010 was 95.2% (year-end 2009: 95.5%). The average financial occupancy rate in 2010 was 95.2% (2009: 96.8%). The occupancy rate at year-end is calculated by dividing the year-end passing rent plus the contractual rental income from vacant units which are already let but not yet physically occupied by the theoretical rental income from the property portfolio as at year-end. The average occupancy rate is calculated by dividing the reported rental income by the average theoretical income. The occupancy rate by country is presented on page 30, including an explanation ofthe underlying trends. In addition, a summary is presented there that clarifies the movements in occupancy rates.
Virtually all leases concluded by VastNed Retail contain inflation clauses. These clauses ensure there is a tight relationship between inflation and rental income. The inflation compensation clause provides for a fixed increase, generally based on the CPI, except for the French property portfolio which can either be indexed based on the cost-of-construction index or on a combination of the CPI, retail prices and the cost-of-construction index.
Active asset management is key to realising growth in rental income and translates into new leases and lease renewals. The total volume of leasing activity amounted to € 10.9 million in new or renewed leases. Expressed as a percentage ofthe theoretical gross rental income in the core countries, this amounted to 8.1% (2009: 8.1%). In 2010,101 new leases (the letting of vacated retail space or soon to be vacated space to a new tenant) representing an annualised rental income of € 6.0 million were concluded and 115 tenants representing an annualised rental income of € 6.9 million departed. In addition, 66 lease renewals representing an annualised rental income of €4.9 million were negotiated. Overall, these contracts were negotiated at an average of 3.3% below the previous rent level (2009: 5.6% above the previous rent level). If lease incentives are taken into account, which is relevant for future results, new rent concluded were on average 11.2% below the previous rent level (2009: 1.8% above the previous rent level).
Lease incentives such as rent-free periods, lease discounts and other payments or contributions benefiting the tenant increased to 2.3% of gross rental income (2009: 1.6%). This rise was primarily due to an increase in lease incentives in the Spanish property portfolio.
VastNed Retail leases its properties to a large number of tenants. The total number of tenants in terms of leases, excluding apartment tenants, for property investments in operation was 1,680 at year-end 2010. A list of the major tenants is provided in the table on page 31 . Noneof the tenants is so dominant as to constitute an important risk to the volume of VastNed Retail's rental income. VastNed Retail attaches importance to letting to strong and trendsetting retail chains. The list on page 31 is based on retail concerns, some of which are represented in VastNed Retail's property portfolio in various formulas.
The market rent for every external appraisal is established by the appraiser. A comparison of these market rents with the theoretical rental income shows the theoretical income to be 100.1% ofthe market rents at the end of 2010. This theoretical rental income consists of the gross rental income at year-end 2010, including mall income (income from letting the spaces outside the retail units in shopping centres) and the estimated turnover rent, plus vacant properties at market rent levels. This slight overrent is the result of instances of overrent and underrent in various countries.
VastNed Retail is active in six countries with different lease types and terms in each country as a result of local legislation and customs. The graph on page 32 shows the expiry dates of the total property portfolio. The average term is 6.5 years (year-end 2009: 6.4 years). Upon expiry of a lease, there is often an option to adjust the rent in VastNed Retail's favour. Taking into account the time remaining until the tenant's next possible termination date, an option that is generally not exercised, the average lease term is 3.0 years (year-end 2009:3.0 years). VastNed Retail has well-spread lease expiry dates.
A significant number of acquisitions took place in 2010. In 2010 the total value of newly acquired properties amounted to € 95.3 million. These acquisitions took place in the context of improving the risk-return profile. A summary of these acquisitions is provided below:
| Investment volume | Net initial | |
|---|---|---|
| City, Address | (x€ l million) | yield (in %) |
| Property investments in operation: | ||
| The Netherlands | ||
| Rotterdam, Zuidplein Hoog 743, 747, 910 and 912 | 7.6 | 5.7 |
| Spijkenisse, Nieuwstraat (17 shops) | 13.1 | 5.8 |
| Utrecht, Overvecht Shopping Centre (15 shops) | 21.5 | 5.2 |
| Spoin | ||
| Malaga, Plaza de la Constitución 9 | 5.2 | 5.7 |
| Property investments in pipeline: | ||
| Turkey | ||
| Istanbul, IstiklalCaddesi 85 | 20.6 | n/a |
| Istanbul, IstiklalCaddesi 161 | 27.3 | n/a |
| Total | 95.3 |
In 2010, a part of the Parque Vistahermosa retail park in Alicante, Spain valued at € 3.1 million was taken into operation.
The cinema and the restaurant unit in the centre ofthe city of Houten in the Netherlands was completed in 2010. The total investment amounted to € 2.8 million.
In 2010, disposals totalled € 8.5 million and were effected in the Netherlands, France and Belgium. These disposals further improved VastNed Retail's risk-return profile and involved the following properties:
| City, Address | Net proceeds ( x€ 1 million) |
|---|---|
| The Netherlands | |
| Helmond, Heuvel 32 | 2.9 |
| Nijmegen, Plein 1944 no. 151 (partial disposal) | 1.1 |
| Sint Oedenrode, Heuvel 32 | 0.4 |
| The Hague, Plaats 21-23 (apartments) | 0.7 |
| Winterswijk, Misterstraat 43-45/Tuinstraat 26-28 | 1.1 |
| France | |
| Aulnoye-Aymeries, Allee des Grands Chênes 34 | 0.1 |
| Lille, Avenue Kuhlmann 187 | 0.1 |
| Lille, Place de la Gare 42 (hotel) | 1.2 |
| Lille, Rue de Paris 38 (apartment) | 0.2 |
| Lille, RuedesFleurs21 | 0.1 |
| Lille, RueLéonThiriez99 | 0.1 |
| Thonon-les-Bains, Rue des Arts 16 (partial disposal) | 0.1 |
| 6e/g;um | |
| Hasselt, Genkersteenweg 76 (apartments) | 0.2 |
| Vilvoorde, Leuvensestraat 43 (apartment) | 0.2 |
| Total | 8.5 |
After deducting the cost of sales, a sales profit of € 0.7 million was realised on these disposals.
VastNed Retail did not have any property investments under renovation as at year-end 2010.
The investment properties in pipeline as at year-end 2010 comprised the following properties:
| Investment | |
|---|---|
| volume | |
| City, Address | (x€ 1 million) |
| The Netherlands | |
| Houten, Achterom 1-5 and Spoorhaag 130-134 | 2,5 |
| Lelystad, De Promesse 3-5 and 111 | 2.4 |
| France | |
| Arras, Rue Ernestale 35 | 0.7 |
| Plaisir, Plaisir-Sablons shopping centre | 14.5 |
| Turkey | |
| Istanbul, IstiklalCaddesi 85 | 23.8 |
| Istanbul, Istiklal Caddesi 161 | 8.2 |
| Total | 72.1 |
Furthermore, the pipeline comprises the newly developed 'Hoogambacht' shopping centre in Hendrik-Ido-Ambacht in the Netherlands. This shopping centre has not yet been handed over to VastNed Retail.
VastNed Retail has its property portfolio appraised on a quarterly basis. This delivers valuable information on developments in the market and enables us to take the necessary action to protect our shareholders' interests. After a period of rising property values, 2008 saw a downward trend in values which lasted up to and including the fourth quarter of 2009. An upward trend in values was once again discernable in 2010. This reflects the strength of the investment market for retail property investments. The uncertainty related to future rent levels has decreased. As stated above, VastNed Retail's property portfolio is let at marginally above the market level on average, which makes it unlikely that there will be a material drop in rent levels across the board. In individual cases, when property is relet, the new rent may be agreed at below the old rent level, or the scope for improving the rent will remain limited.
The value movements of the total property portfolio as a result of appraisals by independent appraisers showed a total value movement of € 35.5 million positive (2009: € 147.5 million negative). The theoretical net yield on the property portfolio (the theoretical net rental income, adjusted for the non-recoverable service charge expenses and bad debt provisions, divided by the appraisal value of the property portfolio) was 6.6% at year-end 2010 compared with 6.7% a year earlier. See also the summary of value movements in investment properties on page 31 .
VastNed Retail's property portfolio is appraised four times a year. The larger properties with a value or anticipated value of at least € 2.5 million make up approximately 75% of the property portfolio and are appraised each quarter by external appraisers of international standing (see the overview of the 2010 Property Portfolio included elsewhere in this report). The smaller properties (< € 2.5 million) are appraised once a year by an external appraiser and are evenly spread across the quarters for this purpose. Following the external appraisal, these properties are internally appraised in the subsequent three quarters with due consideration to the discernable trends in the external appraisals. VastNed Retail ensures that all relevant information is made available to appraisers to enable them to issue well-considered opinions. The valuation methodology is based on international appraisal guidelines (RICS Appraisal and Valuation Standards).
Source: Consensus Forecasts
Source: Global Property Research (CPR), Bloomberg
TOTAL PROPERTY PORTFOLIO (In;
Food 20 W ^ m Non-food 59 I^^^ H Home and garden 8
High street shops 55 ••• • Shopping centres 30 ••^ H Retail warehouses 14 m m ^ Othei I
| Year-end | Average | Average | |
|---|---|---|---|
| 2010 | 2010 | 2009 | |
| Netherlands | 96.6 | 97.6 | 98.1 |
| Spain | 91.9 | 91.7 | 93.9 |
| France | 93.4 | 92.9 | 96.9 |
| Belgium | 98.8 | 99.0 | 99.3 |
| Turkey | 95.8 | 83.3 | 80.3 |
| Portugal | 100.0 | 100.0 | 100.0 |
| roto/ | 95.2 | 95.2 | 96.8 |
| New leases | tease renewals | teasing activity | ||||
|---|---|---|---|---|---|---|
| Change in gross rental |
Change in gross rental |
Change in gross rental |
||||
| income | Volume | income | Volume | income | Volume | |
| Netherlands | 6.8 | 2.3 | 18.2 | 1.2 | 10.7 | 3.4 |
| Spain | (10.6) | 7.4 | (10.1) | 3.0 | (10.7) | 10.4 |
| France | (3.0) | 4.6 | (15.6) | 5.8 | (9.3) | 10.4 |
| Belgium | (9.2) | 2.0 | (8.9) | 6.6 | (2.8) | 8.6 |
| Turkey | 0.9 | 26.8 | 48.3 | 16.1 | 19.1 | 42.9 |
| Portugal | ||||||
| Total | (4.4) | 4.4 | (1.9) | 3.6 | (3.3) | 8.1 |
| 2010 | 2009 | 2010 | 2009 | |
|---|---|---|---|---|
| actual | actual | IFRS | IFRS | |
| Netherlands | (0.5) | (0.3) | (0.5) | (0.6) |
| Spain | (6.4) | (3.7) | (5.8) | (3.7) |
| France | (1.6) | (1.5) | (1-7) | (1.3) |
| Belgium | (1.5) | (1.3) | (1.9) | (1.2) |
| Turkey | ||||
| Portugal | ||||
| Total | (2.4) | (1.6) | (2.3) | (1.6) |
| Netherlands | Spain | France | Belgium | Turkey | Portugal | Total |
|---|---|---|---|---|---|---|
| 2.8 | (1.7) | 2.8 | 1.9 | 0.4 | (0.1) | 6.1 |
| 4.3 | (0.5) | 3.0 | 1.3 | 0.3 | - | 8.4 |
| 1.7 | (1.0) | 9.2 | 1.0 | 0.5 | - | 11.4 |
| 2.6 | (1.3) | 7.1 | 0.3 | 1.0 | (0.1) | 9.6 |
| 11.4 | (4.5) | 22.1 | 4.5 | 2.2 | (0.2) | 35.5 |
| (23.9) | (90.2) | (33.4) | 0.5 | 0.4 | (0.9) | (147.5) |
| 6.2 | 7.8 | 6.1 | 6.6 | 5.8 | 8.8 | 6.6 |
| 6.2 | 7.8 | 6.6 | 6.5 | 5.8 | 9.3 | 6.7 |
As at 31 December 2010
| gross rental income |
gross rental | |||
|---|---|---|---|---|
| Number of | GtA | |||
| (x€ 1 million) | (inSS) | units | (in sqm | |
| H&M | 7.7 | 5.9 | 14 | 23,370 |
| Inditex | 3.5 | 2.7 | 22 | 13,769 |
| Auchan | 3.5 | 2.7 | 11 | 24.730 |
| Metro | 2.7 | 2.1 | 4 | 18,490 |
| Blokker | 2.2 | 1.7 | 27 | 15,827 |
| Maxeda | 2.1 | 1.7 | 11 | 16,031 |
| A.S. Watson | 2.1 | 1.6 | 25 | 9,976 |
| Ahold | 2.1 | 1.6 | 9 | 13,201 |
| Eroski | 1.9 | 1.4 | 1 | 10,173 |
| Armand Thiery | 1.7 | 1.3 | 10 | 6,113 |
| Tenants | income |
| (Over)/ | |||
|---|---|---|---|
| Theoretical | under rent | ||
| rental income | Market rent | (in%) | |
| Netherlands | 52.1 | 53.4 | 2.2 |
| Spain | 34.9 | 32.5 | (7.3) |
| France | 27.0 | 28.0 | 3.5 |
| Belgium | 21.7 | 21.7 | |
| Turkey | 2.1 | 2.4 | 12.9 |
| Portugal | 1.1 | 0.9 | (27.8) |
| Total | 138.9 | 138.9 | (0.1) |
Expiry dates and renewal dates of lease contracts (weighted for gross rental income). Average duration based on first break is 3.0 years and based on end contract 6.5 years.
The Netherlands' strong focus on global trade once again is evident from the record figures realised by the Port of Rotterdam in 2010. The strong development of the German economy in 2010, as well as the solid performance of the Scandinavian economies in this respect significantly counteracted the inferior stateof affairs elsewhere in Western Europe. The 3.9% contraction ofthe Dutch economy in 2009 was followed by a projected economic recovery of 1.7% in 2010 due to the recovery of stock levels and the strong recovery of world trade. Domestic demand barely contributes to economic growth. By far the most positive contribution to domestic demand originated from government. Consumer spending failed to contribute in 2010. Growth in the coming years will be strongly impacted by the sizeable cutbacks on the part of the government. It remains to be seen whether consumer spending can compensate for this. Economic growth will therefore primarily have to be driven by world trade. Only once the impact of these cutbacks has worked its way through the system, the Dutch can economy once again resume a higher growth pattern. The size of the economy in 2012 is expected to be back to 2008 levels.
The magnitude of private consumption barely changed in 2010. Projections for 2011 are somewhat better and call for modest growth. The housing market definitely exerts heavy pressure on consumer spending. This market remained stagnant in 2010 due to uncertainties concerning the abolition of mortgage interest relief. Now that the new government has put this issue aside for the time being, the housing market appears to be slowly picking up again. Mortgage debt in the Netherlands is approximately equal to 100% of GDP and as such is by far the highest of all VastNed Retail core countries. Consumer spending consequently is sensitive to the abolition of mortgage interest relief. It is expected that this will nevertheless happen over time, but not under the current government.
Projections for 2011 retail spending are slightly positive. This is based on relatively low levels of unemployment, a modest growth in employment and an increased consumer confidence in 2010. The projections are, however, moderate and vulnerable to new setbacks.
Due to strong competition in the supermarket sector, margins are fairly thin. Price competition persisted in 2010. Jumbo's ambitious plans to increase its market share and to become a serious competitor to Albert Heijn over time are feeding the expectation that price competition will persist in 2011 as well. The major chains, such as C&A, H&M, We, Zara and recent newcomers, such as Primark and Takko, are the dominant forces in the clothing sector. Due to a high turnover rate and low production costs, these vertically integrated companies (the so-called verticals) are able to establish themselves in good to very good locations. Opportunities in the higher price market segment are primarily accessible to independent entrepreneurs who are able to develop and introduce a strong concept and product range. They respond to the strong consumer demand for high service levels. Due to the economic recession and other factors, such as the continuous growth in internet sales and a change in consumer preferences, secondary locations are experiencing even greater difficulties, resulting in vacancy rates that can exceed 10%. At good to very good locations there is a good demand for shops in the retail trade and the occupancy rate consistently remains at a high level.
Due to high investment demand, the investment value of the Dutch retail properties rose in 2010. Various retail portfolios and high street shops changed hands in 2010. The net initial yields especially for the good to very good locations declined in 2010. The risk premium for secondary locations consequently experienced a relative increase.
With 38% ofthe investment properties (in operation and in pipeline), the largest share of VastNed Retail's total property portfolio is located in the Netherlands. The Dutch property portfolio in operation is characterised by a wide spread and a large number of properties (324) and tenants (732, excluding apartment tenants). The majority of these are high street shops (73%). The remaining investment properties consist of shopping centres (17%) and retail warehouses (10%).
The Dutch property portfolio was well let. The occupancy rate of this segment of the property portfolio in operation at year-end 2010 was 96.6% (year-end 2009:98.1%). The average occupancy rate was 97.6% (2009: 98.1%). The higher vacancy rate at year-end 2010, which can still be deemed to be frictional vacancy, is primarily due to the bankruptcy of two tenants in the Roermond Retail Park. A key lease was signed with a new tenant in the fourth quarter of 2010 as a result of which the centre's occupancy rate improved.
Active asset management is essential to achieving high occupancy rates and stable rental income. In this context, VastNed Retail has opted for a highly active approach in which, in some cases, sitting tenants are bought out and replaced by better performing retailers on more attractive rental terms. The volume of new leases and lease renewals was € 1.8 million (or 3.4% of the theoretical gross rental income), with contracts concluded at an average of 10.7% above the previous rent level.
Important new lettings in 2010 were: 750 sqm by fashion chain Sissy Boy at Koningstraat 12 and 13 In Arnhem, 372 sqm by ING Bank at Onderdoor 3 in Houten and 1,166 sqm by bed specialist Beter Bed in Retail Park Roermond. New lettings totalled € 1.2 million, or 2.3% of the theoretical gross rental income (2009: 3.3%). On average, these were 6.8% above the previous rent level (2009:1.9%). The volume of lease renewals was €0.6 million or 1.2% of the theoretical gross rental income (2009:1.0%). On average, these were 18.2% above the previous rent level (2009:16.0%). Examples of lease renewals are: 604 sqm by fashion chain jack 8i Jones/Only at Oudegracht 153 in Utrecht, 71 sqm by the department store chain Hema at Kalverstraat 208 in Amsterdam and 1,414 sqm by supermarket Albert Heijn at Nachtegaalstraat 55 in Utrecht.
Despite the developments in the letting market, the provision of lease incentives in the Dutch property portfolio remained limited to 0.5% (2009: 0.6%) of gross rental income. A relatively low level of lease incentives is customary in the Netherlands.
The 10 largest tenants account for 22.3% of total rents in the Netherlands. This total is furthermore obtained from 88 retail units, which guarantees a good spread.
On average, the Dutch property portfolio was let at 2.2% below the market level.
The lease expiry schedule provides a good balance between risk spreading and opportunity. An overview of the existing leases at year-end 2010 is shown in the graph on page 40. The average remaining contract term is 4.0 years (year-end 2009: 4.2 years), which is equal to the average time remaining until the next termination date.
In recent years we spent considerable effort improving the quality of the retail portfolio in the Netherlands. We sold approximately € 70 million worth of properties with a heightened vacancy and/or rent development risk profile. In addition to these sales, we expanded the property portfolio by approximately € 200 million. The properties that we have added to our portfolio in recent years include additions in Houten's city centre. Retail Park in Roermond and the 'Promesse' in the centre of Lelystad. All are high-quality newly built shops rented to nationally operating retailers. Our recent purchases in Utrecht Overvecht, Rotterdam Zuidplein and Spijkenisse also concern shops that are located in trendy city centres. These acquisitions make a clear contribution to the 'modernisation' and expansion of our property portfolio from which we expect a positive return trend.
The acquisition of new property investments in 2010 amounted to a total of € 42.2 million. The following properties were acquired:
VastNed Retail has expanded its position in the Zuidplein shopping centre in Rotterdam by acquiring four shops. With 155 shops spread over 55,000 sqm and 12 million visitors per year. Zuidplein shopping centre is one of the very largest shopping centres in the Netherlands. All major national and international retailers, such as Saturn, VSiD, New Yorker and C81A are represented in this shopping centre. The four acquired retail units represent 1,150 sqm with an annual rent of approximately € 0.5 million. The tenants include the chemist's chain Etos (Ahold) and the baby specialty shop Prenatal. The total purchase price was € 7.6 million and the net initial yield approximately 5.7%.
The shops acquired in the Rotterdam region are located in the Spijkenisse city centre, a growth town of currently some 75,000 people. Spijkenisse's centre for shoppers is the Stadshart Spijkenisse comprising approximately 200 shops. Part of these shops is in covered shopping courtyards. Most of the 17 shops acquired by VastNed Retail are let to national retail chains such as Dolcis, Prenatal, Adam and Steps. The total lettable floor area of the 17 shops is approximately 2,850 sqm, and the annual rental income is approximately € 0.9 million. The total purchase price was € 13.1 million and the net initial yield approximately 5.8%.
The Overvecht shopping centre serves an important regional function and accommodates approximately 110 shops spread over 27,000 sqm of retail space. All important national retail chains are represented in this centre which has three supermarkets, C&A, H&M, Vera Moda and Hema as its anchor tenants. The Overvecht shopping centre has ample parking space with 1,100 free parking spaces. The regional importance of this centre can be reinforced if the expansion plans, which call for the addition of approximately 8,000 sqm in additional retail space, are implemented. VastNed Retail has acquired 15 shops in the Overvecht shopping centre. This includes the electronics chain Dixons, the lingerie chain Hunkemöller, the candy shop jamin and the shoe discount retailer Scapino. The total lettable floor space is approximately 5,300 sqm with an annual rent of approximately € 1.4 million. The total purchase price was €21.5 million and the net initial yield approximately 5.2%.
Five small properties were sold in 2010for a total of €6.2 million. The result from these sales in relation to the latest appraised value amounted to € 0.4 million.
In April 2010, a cinema with an adjacent restaurant unit at Onderdoor 4 in the centre of Houten was completed. The cinema has been let, while a tenant is still being sought for the restaurant unit. The investment amounted to € 2.8 million. The net initial yield was 7.5%.
VastNed Retail owns an office complex in the city's centre with the potential of providing additional shops in the future. Its value at 31 December 2010 was € 2.5 million.
The newly developed Hoogambacht shopping centre in Hendrik-ldo-Ambacht serves the new residential district De Volgerlanden and has a lettable floor area of 7,745 sqm and 61 private and 328 public parking spaces. The centre offers typical neighbourhood facilities, including two supermarkets. It is currently not clear when this shopping centre will be delivered. The annual rental income is expected to amount to approximately € 1.4 million. The estimated acquisition price, including acquisition costs is approximately €24.2 million. As at 31 December 2010 the property was valued at €21.0 million. A provision was made for the difference between the value and the estimated acquisition price.
This concerns the units of the centre location De Promesse taken into operation last year that have not yet been let. The € 2.6 million total purchase price owed for these units remains outstanding and will be remitted as soon as the units are let. The value of these units as at 31 December 2010 was appraised at € 2.3 million by the external appraiser.
The value movements in the Dutch property portfolio amounted to € 11.4 million positive (2009: € 23.9 million negative). The net yield as at 31 December 2010 was 6.2% (year-end 2009: 6.2%).
| Theoretical | Year-end | |||||
|---|---|---|---|---|---|---|
| Appraisal | gross rental | occupancy | Number of | CtA | ||
| As at 31 December 2010 (x € 1 million) | value | income | {\n%) | tenants | (in sqm) | |
| 1 | Houten, city centre ('Het Rond') | 101.8 | 7.1 | 96.0 | 117 | 32,355 |
| 2 | Roermond, Schaarbroekerweg 14-58 | 52.2 | 3.9 | 82.6 | 16 | 34.098 |
| 3 | The Hague, city centre | 31.4 | 1.9 | 96.6 | 27 | 6,516 |
| 4 | Utrecht, city centre | 30.2 | 1.8 | 100.0 | 24 | 6.582 |
| 5 | Amsterdam, city centre | 25.2 | 1.3 | 100.0 | 13 | 2,843 |
| 6 | Lelystad, city centre | 22.0 | 1.4 | 97.2 | 10 | 9.450 |
| 7 | Utrecht, shopping centre Overvecht | 21.6 | 1.5 | 94.6 | 15 | 5,374 |
| 8 | Amsterdam, Buikslotermeerplein | 19.4 | 1.2 | 100.0 | 3 | 9.988 |
| 9 | Breda, city centre | 16.4 | 1.0 | 94.5 | 10 | 1.973 |
| 10 | Nijmegen, city centre | 12.8 | 0.9 | 100.0 | 12 | 4,240 |
| Total | 333.0 | 22.0 | 94.8 | 247 | 113.419 |
s
As at 31 december 2010
| Theoretical gross rental |
Theoretical gross rental |
||||
|---|---|---|---|---|---|
| income | income | Number of | CtA | ||
| Tenants | (x€ l million) | (in%) | units | (in sqm) | |
| 1 | Ahold | 2.1 | 4.2 | 9 | 13,201 |
| 2 | Blokker | 2.0 | 3.8 | 19 | 9,819 |
| 3 | A.S. Watson | 1.7 | 3.3 | 19 | 7,484 |
| 4 | Maxeda | 1.6 | 2.0 | 8 | 10,578 |
| 5 | Jumbo | 1.0 | 1.9 | 5 | 6.687 |
| 6 | Macintosh | 1.0 | 1.9 | 11 | 6,436 |
| 7 | Sperwer | 0.8 | 1.6 | 5 | 6,257 |
| 8 | Etam | 0.6 | 1.3 | 5 | 1,674 |
| 9 | Schuitema | 0.6 | 1.2 | 3 | 1,616 |
| 10 | Charles Vögele | 0.6 | 1.1 | 5 | 4,514 |
Expiry dates and renewal dates of lease contracts (weighted for gross rental income). Average duration based on first break as well as on end contract is 4.0 years.
Economic growth
UNEMPLOYMENT
Food 26 Non-food 52 Home and garden 6 Other 16
The shop is a beautiful reflection ofthe things that Filippa K stands for, namely, style, simplicity and quality. The building's look and feel is entirely consistent with the shop's interior. Anyone entering the shop first sees the long table that provides a feel for the brand's own style. The light and the use of colour in the shop create an atmosphere of simplicity and calm, and the collection exudes quality. In terms ofthe location, I'll be brief, it's perfect. The 'Plaats' is a wonderfully sheltered plaza located in a beautiful part of The Hague's city centre. We are therefore more than happy with this spot.'
| Theoretical | Year-end | |||||
|---|---|---|---|---|---|---|
| Appraisal | gross rental | occupancy | Number of | GLA | ||
| As at 31 December 2010 (x€ 1 million) | value | income | (m%) | tenants | (in sqm) | |
| 1 | Madrid, Centro Comercial 'Madrid Sur' | 71.1 | 5.7 | 97.0 | 69 | 23,405 |
| 2 | Malaga, Centro Comercial 'La Rosaleda' | 61.6 | 4.9 | 88.3 | 70 | 15,336 |
| 3 | Madrid, Centro Comercial 'Las Rosas' | 52.4 | 4.2 | 95.0 | 89 | 8,254 |
| 4 | Badalona, Centro Comercial 'Montigala' | 40.3 | 3.4 | 83.5 | 52 | 11,396 |
| 5 | Alicante,'Parque Vistahermosa' | 37.9 | 4.4 | 82.2 | 10 | 34,609 |
| 6 | Madrid, city centre | 37.5 | 3.7 | 90.9 | 49 | 20,328 |
| 7 | Madrid, Centro Comercial 'Cetafe lil' | 35.1 | 1.5 | 100.0 | 4 | 1,420 |
| 8 | Murcia, Centro Comercial 'Las Atalayas' | 31.8 | 3.2 | 97.1 | 41 | 10,342 |
| 9 | Burgos, Centro Comercial 'El Mirador' | 26.5 | 2.2 | 96.3 | 42 | 9,832 |
| 10 | Castellón de la Plana. Calle Crecia 4 | 10.6 | 0.9 | 100. 0 | 1 | 5,109 |
| Total | 404.7 | 34.1 | 91.6 | 427 | 140,031 |
| Theoretical | Theoretical | ||||
|---|---|---|---|---|---|
| gross rental | gross rental | ||||
| income | income | Number of | GLA | ||
| Tenants | (x€ 1 million) | (in%) | units | (in sqm) | |
| 1 | Auchan | 2.2 | 7.3 | 6 | 13,351 |
| 2 | Metro | 2.2 | 7.2 | 3 | 14,080 |
| 3 | Inditex | 2.2 | 7.1 | 19 | 9,878 |
| 4 | Eroski | 1.9 | 6.1 | 1 | 10,173 |
| 5 | Grupo Cortefiel | 1.0 | 3.4 | 13 | 3,860 |
| 6 | Mc Donalds | 0.8 | 2.5 | 6 | 3,090 |
| 7 | Salvatore Ferragamo | 0.6 | 1.8 | 1 | 587 |
| 8 | Decimas | 0.6 | 1.8 | 8 | 1,754 |
| 9 | Real Madrid | 0.5 | 1.6 | 1 | 429 |
| 10 | Metropolitan sport | 0.5 | 1.5 | 1 | 2,796 |
Expiry dates and renewal dates of lease contracts (weighted for gross rental income). Average duration based on first break is 2.8 years and based on end contract 10.9 years.
GDP GROWTH in%
Economic growth
Development consumer prices
Unemployment as % of working population
Growth consumer spending
Non-food 52 Home and garden 7 Other 19
Food 22
'Plaza de la Constitución, also known as the 'plaza with four streets', is located in the heart of Malaga and is an important meeting place for the population. The plaza has a long history and was the seat of many key institutions, such as the City Hall and the Palace of Justice. Today, it accommodates the branch of a bank.'
In terms of its economy, Spain is considered a risk country within the euro zone by the capital markets, and after Greece, Ireland and Portugal is considered a candidate for debt relief. That risk seems limited, however, because the government already took drastic measures in 2010, designed to restore order to the government's finances. Public debt as a percentage of GDP is relatively low as well and the 2011 budget deficit is projected to be around 6%: the objective that the government has set for itself. Although Spain, in terms of its debt, is in a relatively good position in comparison to the crisis countries Greece and Ireland, the capital market is nevertheless viewing the large-scale Spanish public debt issues due in 2011 with some concern.
The 3.7% contraction ofthe Spanish economy in 2009 was followed by a projected slight decline of 0.2% in 2010. The decline in investments is primarily responsible for this, caused by the standstill of the building sector. Exports made a clear positive contribution, as did the recovery of consumer spending. The picture for 2011 is approximately the same, although the contraction in investments is expected to be less than it was in 2010, while the reduction in government spending will be greater. On balance, projections call for limited economic growth. The high level of unemployment and the housing market crisis are at the root of keeping economic growth projections for the coming years low. It is likely to take until 2014 before the size of Spain's economy will once again reach 2008 levels.
In terms of private consumption, a rise of 1.1 % is expected in 2010, following a decline of 4.3% in 2009. Consumer spending growth trends are expected to continue to be low over the coming years. Retail spending suffered a major blow in Spain. The correction already began in 2008 due to the sharp increase in mortgage rates. Mortgages in Spain are normally based on short-term interest rates (Euribor plus a fixed margin). Retail spending is experiencing a cautious recovery. Projections are very moderate, because consumer confidence barely recovered in 2010, unemployment is high and the housing market is still in a state of crisis.
The difficult phase in which the Spanish economy currently finds itself, is the right environment for the growth in discount formulas. Dia is the market leader in the food discount sector, with Aldi and Lidl as its competitors. The market leader in the regular supermarket sector is Mercadona, which traditionally has a favourable price/quality ratio and a strong house brand. These food retailers are profiting from current market conditions and are expanding. The consumer benefits from lower price levels. In the fashion sector, the retail chains C&A, H&M, Kiabi and Primark are on an expansion track. Inditex is responding by establishing Lefties in the discount market, a type of factory outlet similar in format to Zara, Mango with Think UP and El Corte Ingles with Oportunidad. Decathlon is introducing the discount store Koodza. The shift in the Spanish retail trade is taking place and is forcing every retail formula to respond. Leasing activity therefore is primarily generated by the discount formulas.
According to research conducted by Jones Lang Lasalle, the weaker shopping centres in Spain currently have occupancy rates down to close to 50%, while the better shopping centres are exhibiting occupancy rates that are as high as 90% to 100%. Smaller retail units are more difficult to let than larger retail units, because especially the larger retail chains are on an expansion track. The investment market for shopping centres in 2010 experienced the necessary uncertainty related to the risk premium allocated to Spain. The valuation of shopping centres appeared to stabilise during the course of 2010. High street shops at good to very good locations in city centres rose in value due to the large popularity of this type of investment.
As at year-end 2010 the Spanish property portfolio made up 21 % of VastNed Retail's total property portfolio and consists mainly of medium-sized shopping centres (77%), along with a number of large retail warehouses (12%) and high street shops (11%).
The Spanish economy was under heavy duress in 2009 and 2010. This had a highly negative impact on unemployment, which rose to 20%. This resulted in a strong drop in consumer spending as a consequence of which retailers in shopping centres experienced a drastic decline in revenues. This led to reduced income, payment arrears, vacancies and the need for providing existing tenants with lease discounts. The final result was a 30% loss in value since the beginning ofthe crisis.
Nonetheless, valuations in 2010 remained stable. In addition, occupancy rates are once again beginning to climb, from below 90% at the low point to 92% now. This leads us to suspect that there is an improvement underway in terms of valuations, as well as occupancy
An upturn is already perceptible in the market: leases for 8,700 sqm were signed in 2010, of which 5,800 sqm were in the last 6 months alone. In addition, a lease will soon be signed for a 2,600 sqm unit in the Montigala shopping centre, which would bring the newly leased surface area for the past financial year to more than 11,000 sqm.
The greater focus of our efforts is on managing the portfolio, rather than pursuing new acquisitions, with a clear objective of making our current properties more attractive to the public. We are working on improving the commercial mix within our shopping centres. For example, in the past financial year, two properties that previously housed cinemas were repurposed and permits were obtained to replace a third cinema by a retail unit. In addition, we are doing everything we can to ensure that our shopping centres remain pleasant shopping and meeting places. Over the past three years we renovated three shopping centres to give them a more modern appearance. The plan calls for all shopping centres to be renovated over the next two years.
In addition to the above, we should also make mention of the excellent, mostly urban location of our properties. 45% of our properties are concentrated in the Madrid region, the most affluent region in Spain.
Furthermore, we should not forget to mention that, in accordance with company policy, we carried out pilots in three shopping centres in the context of sustainability, with highly satisfactory results. An additional three pilots will take place in 2011.
Finally, I would like to focus attention on the tremendous work done by the people on our team during these difficult years. You can rest assured that in 2011 we will continue to put all of our energy and enthusiasm into our work in order to achieve significant improvements in our portfolio.
The occupancy rate of the Spanish property portfolio at year-end 2010 was 91.9% (year-end 2009: 92.3%). The average occupancy rate declined from 93.9% to 91.7%. The lower occupancy rate was mainly caused by the expiry or termination of 52 leases that accounted for € 3.3 million in gross rental income (€ 0.3 million was related to property investments under renovation). This was partly offset by the conclusion of 44 new leases that accounted for € 2.6 million in gross rental income. However, a positive trend was discernable in the second half of 2010 when one considers that as at 30 June 2010, the occupancy rate was below 90%, while the occupancy rate as at year-end 2010 was over 2 percentage points higher than that as at 30 June 2010.
Addressing vacancies has high priority for the Spanish property portfolio. This, for example, has resulted in an increase in the occupancy rate in the Montigala shopping centre in Badalona (greater Barcelona) from approximately 75% (year-end 2009) to 92.7% (January 2011). Due to active management, two tenants were attracted for the cinema space converted to retail units and, after the balance sheet date, a lease was signed with the electronics chain Worten as a new anchor tenant for the shopping centre.
Given the current economic climate, the occupancy rate remains a priority. In some cases lease discounts are being offered to existing tenants during the tenancy period. Tenant retention plays a major role in maintaining the quality of shopping centres. In such cases the applicable turnover rent terms usually remain unchanged, which means that VastNed Retail also benefits when retail sales once again recover.
As mentioned earlier, the economic climate in Spain can be described as difficult. Tenants are under pressure as a result of lower sales. The average rent/sales ratio in 2010 stabilised at a level of 11.3% (2009:11.3%). This figure excludes supermarket and hypermarket sales. These turnover levels impact on the rents retailers can pay and consequently affect leasing activity. The volume of new lettings and lease renewals amounted to 10.4% of the theoretical gross rental income, representing a total of € 3.6 million. New rents were on average clearly below the previous rent level. The average decline was 10.7%, consisting of a decrease of 10.6% in lease renewals (2009:1.2% increase) and a decrease of 11.1% (2009:4.8% decrease) in new leases. After applying straight-lining, the lease discounts were 28.4% and 13.3% respectively (2009: on average 24.0% negative).
Key new leases in 2010 were: 1,243 sqm by the discount clothing retailer Kiabi in Centro Comercial Montigala in Badalona, 2,796 sqm by Metropolitan Gym in Centro Comercial Las Atalayas in Murcia and 256 sqm by the leading jeans brand Pepe Jeans in the high street shop at Calle Fuencarral 23 in Madrid. The necessary lease renewals were also concluded. The volume of lease renewals was € 1.0 million or 3.0% of the theoretical gross rental income (2009: 3.5%). Examples of lease renewals are: 109 sqm and 58 sqm by the clothing chain Benneton and Bijou Brigitte, respectively, in Centro Comercial Montigala in Badalona and 122 sqm by the shoe chain Marypaz in Centro Comercial La Rosaleda in Malaga.
The lease incentives on leases concluded amounted to 5.8% ofthe gross rental income (2009: 3.7%). This increase is characteristic of the competitive environment in which the Spanish retail property market found itself in 2010.
The 10 largest tenants account for 40.3% of the total theoretical rental income in Spain. This rental income is furthermore obtained from 59 retail units, which guarantees a good spread.
On average, the Spanish property portfolio was let at 7.3% above the market level.
In Spain, leases are generally concluded for a period of five years, although the occasional exception is made. For example, in the Spanish property portfolio the leases with the fashion conglomerate Inditex were concluded with an annual termination option. Inditex did not terminate any leases in 2010. The graph on page 46 shows the expiry dates of the lease contracts. The average term of the leases in the Spanish property portfolio, measured up to the end ofthe lease, is 10.9 years (year-end 2009: 10.6 years). Based on the first termination option, the average duration is 2.8 years (year-end 2009: 3.0 years).
A high street shop at Plaza de la Constitución 9 located in the centre of Malaga was acquired in the second quarter of 2010 for € 5.2 million at a net initial yield of 5.7%. A long term lease for this unit was signed with the Spanish bank Banesto.
There were no disposals in 2010.
The leisure part of the Parque Vistahermosa retail park in Alicante, comprising a surface area of approximately 10,500 sqm, was converted into retail units to provide a more attractive location for chain stores. The transfer of property investments under renovation to property investments in operation took place in mid-2010.
The Spanish property portfolio is the only part of VastNed Retail's property portfolio in which the downward valuations experienced in 2009 persisted to a limited extent in 2010. The value movements in investment properties in 2010 totalled € 4.5 million negative (2009: € 90.2 million negative). This sharp decline in downward valuations was caused by a halt in the yield shift. The net yield at year-end 2010 was 7.8% (year-end 2009: 7.8%).
The French economy is performing relatively well during this period of crisis, with a relatively limited contraction of 2.5% in 2009 and a projected growth of 1.6% in 2010. The growth is for the most part due to an increase in domestic demand. Indeed, while export is exhibiting strong growth, import is experiencing strong growth as well. In terms of domestic demand, the reason that the economy is performing well is due to the consumer and the government. A reduction in the government's contribution is expected over the next few years, but this is expected to be offset by business investments. Consumer spending is projected to continue to grow steadily. The size ofthe French economy is expected to be already back to 2008 levels by the beginning of 2012.
Reforms in France are always very difficult to implement. Nevertheless, government has succeeded in drastically reforming the pension system. This reform contributes to the country's long-term stability. Additional economic reforms are required to ensure the French economy's consistency with the world economy over the long term. The president's popularity is however very low and the expectation is that his attention will now primarily be focused on improving his popularity. It will therefore not be easy to introduce new controversial measures. Indeed, as long as the economy moves ahead at the current pace, no one will really insist on this for the time being.
Private consumption is doing well in France in comparison with other VastNed Retail core countries. In 2009 there was an increase of 0.6% that in 2010 is expected to reach 1.5%. At 35% of GDP, mortgage debt is relatively low and generally financed on the basis of long-term loans at fixed interest rates. The stable private consumption trend is in part due to this situation. Retail spending has suffered a great deal from the confidence crisis in 2008, but now also seems to exhibit more stable trends. It is somewhat alarming that consumer confidence in France is staying at a low level and is not recovering.
The hybrid supermarket is gaining in popularity in France. This type of supermarket combines online ordering by consumers with the pickup of goods from nearby, strategically located outlets on their way home from work. In relation to foods, a strong trend towards fresh food markets is also discernable. As in a number of other countries, the French population is also greying. In the building sector, there is an emerging Do-lt-For-Me instead of Do-lt-Yourself trend. Separate from these innovative trends, the crisis of confidence in 2008 also increased the focus on discount formulas in France. In terms of shopping centres, there was a halt in the development of new shopping centres for a long time as a result ofwhich the current stock has aged. New shopping centres and the expansion of existing shopping centres are therefore finding favour with the French consumer.
The high indexation of rents by the construction cost index in recent years has in a number of instances resulted in sharply increased rental levels that consequently were higher than market rents at that point in time. This provided an incentive to some retailers to urge owners to negotiate a new lease with lower rents. In spite of this, the investment values of French retail properties once again rose in 2010. A number of very sizeable transactions for equally very sizeable shopping centres took place. The net initial yields declined. There is a great deal of interest in high street shops at good to very good locations in inner cities.
2 1% ofthe total property portfolio, is located in France and comprises 120 properties with 242 tenants. The property portfolio for the most part consists of high street shops (56%) and shopping centres (34%). The rest consists of retail warehouses (7%) and other, predominantly residential, property (3%). The latter category is considered to be non-core and will be sold in due course. The property portfolio is spread throughout the country, with 19% concentrated in the city centre of Paris, 14% in the city centre of Lille and 21 % in the Val Thoiry shopping centre in Thoiry near Geneva.
When I think of the French portfolio, the first thing that comes to mind is the words 'spread' and 'balance'. First, the balanced geographical spread; we operate from Dax to Dunkirk and from Brest to Nice, and of course in large cities, such as Paris, Lyon, Lille and Marseille. We offer a large range of opportunities to all kinds of retailers here. Second, the balanced spread in terms of the types of properties, ranging from top locations with high value, high rental income and high certainty to more standard properties that onetheless represent a great deal of potential.
n addition, there is a balanced spread within the property portfolio between shopping centres (34%), high street shops (56%) and large retail warehouses (7%). Finally, there is also a balanced spread between tenants, brands and dimensions. Our 242 tenants,
g on their business model, operate in areas ranging from 40 sqm to 8,000 sqm.
Our total portfolio offers all our partners, clients, suppliers and employees a stable and reliable environment.
This balanced growth in European property guarantees our shareholders a balanced risk-return profile.
The occupancy rate of the French property portfolio at year-end 2010 was 93.4% (year-end 2009: 92.4%). The average occupancy rate declined from 96.9% to 92.9%. The decline in the average occupancy rate was caused by the expiry of the rent guarantee for the Lille portfolio in mid-November 2009. The improvement in the occupancy rate at year-end 2010 is due to a steady leasing activity in 2010.
The loss in rental income in 2010due to departing tenants amounted to € 1.2 million. This was amply compensated by approximately € 1.3 million in new lettings.
The volume of leasing activity in 2010 was 10.4% of the theoretical gross rental income (2009:13.1 %). On balance, new contractual rental income was 9.3% below the previous rent level. On average, new lettings were concluded with 3.0% lower rents and lease renewals with 15.6% lower rents. A total of 15 new lettings and 8 lease renewals were concluded.
A number of these new lettings is worthy of mention, such as the letting of 2,973 sqm by the supermarket chain Ledere in the Centre Marine shopping centre in Dunkirk, the letting of 103 sqm by the fashion shop Bash at Rue de la Monnaie 4 in Lille and the letting of 790 sqm by the Spanish fashion chain Desigual at Rue Saint-Jean 45-55 in Nancy. Examples of lease renewals are: 2,029 sqm by the Swedish fashion house H&M at Rue Saint Jean 45-55 in Nancy, 236 sqm by the luggage and handbag specialist Luis Vuitton at Rue de la Grande Chaussée 29 in Lille and 107 sqm by the French fashion chain IKKS in the Val Thoiry shopping centre in Thoiry.
The provision of lease incentives in the French property portfolio remained limited to only 1.7% (2009:1.3%) of the gross rental income.
The 10 largest tenants account for 46.8% of the total theoretical rental income in France. This gross rental income is furthermore obtained from 46 retail units, which guarantees a good spread.
On average, the French property portfolio was let at 3.5% below the market level.
Leases in France are generally concluded based on the 3-6-9-system. This means that the duration of the contract is nine years and the tenant can give notice after three and six years. The overview of lease expiry dates in the French property portfolio on page 60 shows that a large number of leases will expire and tenants will be able to give notice in 2011. This is not considered a cause for concern, since the retail properties are in competitive locations, so it is unlikely that many tenants will give notice on their leases. The average duration of leases up to the tenants' first termination date is 1.5 years (year-end 2009: 1.4 years). Taking the total term of the lease agreements into account, this figure is 6.0 years (year-end 2009: 4.8 years).
There were no acquisitions in 2010.
This shopping centre is located 25 km to the south-west of Paris. Plans have been developed to redevelop and expand this shopping centre, resulting in a total lettable retail floor area of approximately 27,000 sqm. VastNed Retail has no legal obligation to redevelop this shopping centre and is specifically taking the possibility of divestment into consideration. The property was appraised at € 14.5 million as at 31 December 2010.
This concerns part of the property Rue Ernestale 35 in Arras, which can be developed in future. The value of this portion amounts to € 0.7 million.
Seven small non-core investment properties, mostly located in Lille, were sold for € 1.9 million in 2010.
The value movements in the French property portfolio amounted to € 22.1 million positive (2009: € 33.3 million negative). This brings the net yield at year-end to 6.1 % (year-end 2009: 6.6%).
| Theoretical | Year-end | |||||
|---|---|---|---|---|---|---|
| As at 31 December 2010 (x € 1 million) | Appraisal value |
gross rental income |
occupancy (in%) |
Number of tenants |
CLA (in sgm) |
|
| 1 | Thoiry, Centre Commercial 'Val Thoiry' | 91.2 | 5.8 | 98.9 | 63 | 23,415 |
| 2 | Paris, city centre | 81.1 | 4.6 | 96.5 | 12 | 5,309 |
| 3 | Lille, city centre | 61.1 | 3.7 | 79.5 | 42 | 8,641 |
| 4 | Nancy, Rue Saint-Jean 44-45 | 28.3 | 1.7 | 90.8 | 7 | 4,794 |
| 5 | Dunkirk, Centre Commercial 'Centre Marine' | |||||
| Place EmileBollaert | 22.8 | 2.0 | 86.7 | 19 | 10,263 | |
| 6 | Angers, Rue Lenepveu 25-29 | 17.9 | 1.0 | 100.0 | 5 | 4,664 |
| 7 | Limoges, Centre Commercial 'Limoges Corgnac' | 16.2 | 1.6 | 81.0 | 17 | 5,407 |
| 8 | Nice, Route de Grenoble 604 | 7.9 | 0.6 | 100.0 | 1 | 2,067 |
| 9 | Limoges, Centre Commercial 'Beaubreuil' | 6.3 | 0.5 | 92.7 | 14 | 4,452 |
| 10 | Cannes. Rue d'Antibes 40 | 6.2 | 0.3 | 100.0 | 1 | 948 |
| Total | 339.0 | 21.8 | 92.0 | 181 | 69,960 |
^ -
As at 31 December 2010
| Theoretical | Theoretical | ||||
|---|---|---|---|---|---|
| gross rental | gross rental | ||||
| income | Income | Number of | CLA | ||
| Tenants | (x€ 1 million) | (in%) | units | (in sqm | |
| 1 | H&M | 4.6 | 18.0 | 5 | 8,323 |
| 2 | Armand Thiery | 1.7 | 6.7 | 10 | 6,113 |
| 3 | Auchan | 1.3 | 5.2 | 5 | 11,379 |
| 4 | Vivarte | 0.8 | 3.2 | 5 | 5,238 |
| 5 | PPR | 0.8 | 3.1 | 3 | 4,065 |
| 6 | Kesa | 0.7 | 2.9 | 1 | 1,278 |
| 7 | Nocibé | 0.6 | 2.3 | 4 | 1,633 |
| 8 | Louis Vuitton | 0.5 | 2.1 | 5 | 2,160 |
| 9 | Cello International | 0.5 | 1.9 | 5 | 1,430 |
| 10 | Camaieu | 0.5 | 1.8 | 3 | 940 |
Expiry dates and renewal dates of lease contracts (weighted for gross rental income). Average duration based on first break is 1.5 years and based on end contract 6.0 years.
Economic growth
Development consumer prices
Food 10 Non-food 74 Home and garden 6 Other 10
Shopping centres 34 Retail warehouses 7
The first reason for us to choose the Centre Marine shopping centre was to gain market share in Dunkerque where we are under-represented. Secondly, studies showed that there was a real potential. Furthermore, the big hypermarkets in the suburbs are running out of steam. With Rosendael we are experimenting with a convenience store aimed at ageing patrons who are looking for contact, friendliness and speedy service. Free parking for the first two hours was another key factor. And finally we enjoy working in a climate of trust and understanding with VastNed. , Place Emile Bollaert, Dunkirk, France
| As at 31 December 2010(x€ 1 million) | Appraisal value |
Theoretical gross rental income |
Year-end occupancy (InX) |
Number of tenants |
CLA (in sgm) |
|
|---|---|---|---|---|---|---|
| 1 | Brussels, city centre | 38.1 | 2.5 | 100.0 | 12 | 8,297 |
| 2 | Antwerp, city centre | 35.4 | 2.1 | 100.0 | 12 | 5,101 |
| 3 | Tielt-Winge, Retailpark 'Gouden Kruispunt', | |||||
| Aarschotsesteenweg 1-6 | 23.8 | 1.7 | 100.0 | 23 | 18,866 | |
| 4 | Vilvoorde | 19.1 | 1.5 | 90.9 | 16 | 15,619 |
| 5 | Bruges, Steenstraat 80 | 15.1 | 1.0 | 100.0 | 2 | 2,058 |
| 6 | Mechelen, city centre | 14.1 | 0.9 | 100.0 | 4 | 3,309 |
| 7 | Tongres, city centre | 13.9 | 1.1 | 91.9 | 23 | 8,890 |
| 8 | Ghent, city centre | 11.5 | 0.7 | 100.0 | 6 | 3,245 |
| 9 | Leuven, Bondgenotenlaan 69-73 | 9.4 | 0.6 | 100.0 | 2 | 1,495 |
| 10 | Wilrijk. Boomsesteenweg | 9.4 | 0.7 | 100.0 | 7 | 6,347 |
| Total | 189.8 | 12.8 | 98.2 | 107 | 73.227 |
As at 31 December 2010
| Theoretical | Theoretical | ||||
|---|---|---|---|---|---|
| gross rental | gross rental | ||||
| income | Income | Number of | CLA | ||
| Tenants | (x€1 million) | (in*) | units | (in sqm | |
| 1 | H&M | 2.6 | 12.0 | 6 | 10,757 |
| 2 | Inditex | 1.1 | 5.4 | 2 | 3,007 |
| 3 | Aldi | 1.1 | 5.3 | 16 | 15,399 |
| 4 | Decor Heytens | 1.0 | 4.8 | 15 | 10,901 |
| 5 | Euro Shoe Unie | 0.9 | 4.3 | 10 | 7,545 |
| 6 | Charles Vögele | 0.7 | 3.2 | 5 | 4,350 |
| 7 | Maxeda | 0.6 | 2.6 | 3 | 5,453 |
| 8 | Blokker | 0.5 | 2.5 | 8 | 6,008 |
| 9 | Macintosh | 0.5 | 2.3 | 5 | 5,096 |
| 10 | ICCompanys | 0.5 | 2.1 | 1 | 528 |
Expiry dates and renewal dates of lease contracts (weighted for gross rental income). Average duration based on first break is 2.8 years and based on end contract 6.8 years.
GDP GROWTH Economic growth
2007 2008 2009 2010 201 IE 2007 2008 2009 2010 201 IE
Development consumer prices
Unemployment as % of working population
Growth consumer spending
Food 15 • • M Non-food 61 ^^^ H Home and garden 21 ^ ^ H Others
High street shops 57 Retail warehouses 43
The building completely matches G-Star RAW's personality and the shop has consequently been entirely fitted up according to G-Star RAW's image. We opted for a simple, trendy and especially spacious layout. The product is the central theme within the shop and there must therefore be ample space for it, entirely in line with G-Star RAW's philosophy "Just the Product".'
A central focus of attention is the political stalemate in Belgium. The formation of a new government is dominated by the linguistic conflict between French and Dutch language Belgians in that country. Holding new elections does not seem to offer a way out, because the expectation is that the results would only serve to further sharpen existing contrasts. The current government can only act in an observing capacity and is unable to implement structural reforms designed to improve government finances structurally. Until now this has not really negatively impacted Belgium, although there appears to be increasing pressures from Europe and the financial world. For the time being, the economy seems to be doing relatively well after the crisis of confidence in 2008.
The Belgian economy shrunk by 2.7% in 2009 and is projected to grow by 2.1% in 2010. Prospects for the coming years also appear to be relatively good. The size of the Belgian economy could well reach 2008 levels by the beginning of 2012. Exports are picking up and private consumption, as well as government spending, is growing. It is particularly in relation to this last point where, once a new government has been formed, there could very well be some changes. Government budget cutbacks could then reverse the government's positive contribution to economic growth into a negative contribution. Indeed, a debt crisis is looming in the background in Belgium as well, if it proves impossible to form a government. Standard and Poor's lowered Belgium's credit rating in mid-December 2010.
Private consumption remained stable in Belgium in 2009 and once again exhibited growth in 2010. Consumer confidence rose sharply in 2010, while unemployment remained more or less stable. The issue concerning the formation of a new government does not seem to be affecting the Belgian consumer. Retail spending clearly increased at the end of 2010, indicating increased optimism there as well.
The discount formulas are also benefiting from the current economic situation in Belgium. In the food sector, Carrefour is experiencing difficulties, while the discounter Colruyt is doing well, as are Lidl and Aldi. Of note therefore is the entry of the Dutch supermarket giant Albert Heijn into the Belgian retail market. Albert Heijn is not a discounter and is therefore expected to compete with Carrefour and Delhaize. Many parties will be tracking this entry with interest over the coming years, because if Albert Heijn turns out to be successful, this will be at the expense of other supermarket chains. In the fashion sector, many international chains are active in the Belgian retail market. Recent entries include Primark, New Look and River Island. Especially Primark is doing very well with its new shop in Liège. Primark's 'value for money' concept is very well received in Belgium as well, following earlier successful openings in other European countries.
The Belgian retail market held up well in 2010. Leasing activity is moderate, however, because limited retail space is available. While there is interest on the part of retail trade, the lack of new retail space plays an important role in this. Developers are cautious, while the international retail trade is looking for expansion. There is interest in the retail market on the part of private investors, because investment in retail properties is considered a safe investment. The size of the transaction market is not large, however. The net initial yields slightly declined in 2010 in comparison to 2009.
The Belgian property portfolio (15% ofthe total property portfolio) is one of the most crisis-resistant components of VastNed Retail's property portfolio. This applies to both operating results and the development of the values in this property portfolio. This is due to a solid property portfolio mix and the Belgian government's restrictive spatial planning policy.
At year-end 2010 the Belgian property portfolio comprised 94 properties in the categories of high street shops (57%) and retail warehouses (43%).
: it is safe for me to say that the investments in retail property in Belgium are solid able investments that perfectly respond to the VastNed Group's adage 'Balanced ;h in European Property'.
.rmore, the portfolio is a unique mix of city centre properties in extremely scarce cations combined with a great portfolio of retail warehouses shops and retail parks best locations that Belgium has to offer. This means that we have developed a ' enviable position in this scarce market.
in the recent turbulent years, the value of the Belgian property portfolio proved stable. Almost all contracts were able to count on renewals on expiry at higher rates.
This stable growth is sustained by a number of factors: first, Belgium often is a test market for international retailers, which results in a quasi-permanent high demand for good locations and, second, purchasing power in Belgium is relatively stable due to wages that are legally tied to the index and a high savings rate on the part of Belgians.
The occupancy rate at year-end 2010 was 98.8% (year-end 2009: 99.1 %). The average occupancy rate in 2010 was 99.0% (2009: 99.3%). The 10 leases terminated in 2010 represented € 0.5 million in gross rental income, which was virtually compensated for by 8 new lettings concluded in 2010, representing a total of € 0.4 million in gross rental income.
Leasing activity in 2010 can be described as respectable. A total of 26 leases representing a total value of € 1.7 million in gross rental income were concluded. New leases worth € 0.4 million and lease renewals worth € 1.3 million were concluded. These leases were on average concluded at 2.8% below the previous rent level. Examples of new leases are: 399 sqm on Maastrichterstraat in Tongres by the fashion chain jack & Jones and 702 sqm at Hasseltweg 74 in Genk by the bed specialist Easy Sleep. Examples of lease renewals are: 1,368 sqm at Elsensesteenweg 41-43 in Brussels by the international fashion chain Mango, 207 sqm at Grand Rue 19 in Mons by the fashion chain Pimkie and 1,757 sqm by the international fashion chain H&M on Maastrichterstraat in Tongres. The rent levels realised are on average somewhat lower than the previous rent level. This is offset by the fact that those two lettings contribute to the revitalisation ofthe city centre property portfolio in Tongres.
The lease incentives on leases concluded amounted to 1.9 % of the gross rental income (2009:1.2%).
The 10 largest tenants account for 44.5% ofthe total theoretical gross rental income in Belgium. This rental income is furthermore obtained from 71 retail units, which guarantees a good spread.
On average, the Belgian property portfolio is let at market level.
Leases in Belgium are generally concluded on the basis of the 3-6-9-system. This means that the tenant can give notice after three and six years. This seldom happens, however, since the tenant earns his living at and from the specific location of the shop. The overview of lease expiry dates as shown on page 66, differentiates between the expiry dates based on the termination date of the contract and a more conservative calculation based on the next possible termination date for the tenant. The scope for increasing the rent plays a key role in the first method. The second method was devised from the point of view of risk management. The average term is 6.8 years (year-end 2009: 7.5 years). Based on the tenant's first option of termination, the average duration is 2.8 years (year-end 2009: 2.5 years).
There were no acquisitions in 2010.
A number of apartments was sold in 2010 in Vilvoorde (Leuvensestraat 43) and in Hasselt (Genkersteenweg 76) for a total of € 0.4 million.
The value movements in investment properties in 2010 totalled € 4.5 million positive (2009: € 0.5 million positive). The net yield at year-end 2010 amounted to 6.6% (year-end 2009: 6.5%).
Following a 4.7% contraction in 2009, the Turkish economy is making a strong comeback with a projected growth of 8.1% in 2010. Theeconomy already exceeded 2008 levels in 2010. A strong domestic demand is responsible for this high economic growth. In addition to investments with a projected growth of 25%, consumer spending with a projected growth rate of 7% is to a large extent contributing to the 2010 economic growth. The investments are expecting to improve the country's export position. This position is currently lagging due to the country's strong focus on Europe and a strong currency. The country's exports are expected to grow in volume over the coming years. The government sector, in proportion, is barely growing and the banking system is not experiencing the problems that are primarily evident in western Europe. Within Europe, Turkey is the only major economy with a very young population, population growth and a relatively low GDP per capita. The country is part ofthe group of emerging economies in the world. Economists project a long-term economic growth of approximately 5% per year. Inflation trends in recent years have been much better controlled than in the past. Inflation is however still clearly higher than it is in the euro zone.
Turnover in the retail sector is benefiting from the economy's strong growth in 2010. Expectations are that the retail trade will continue to exhibit a favourable trend due to the still relatively low GDP per capita and population growth. A key element in the retail trade trend is that the mortgage market is in an entirely different phase than that of other VastNed Retail core countries. There is barely any mortgage debt, while private home ownership is high. The mortgage market is now beginning to grow. Experience shows that this is a positive condition for the development of retail trade in a country.
The retail market in Turkey is in the middle of a modernising process. Many new shopping centres are being opened and shopping streets have begun a process of internationalisation. International retailers, such as Zara, H&M, C&A, Mediamarkt and Best Buy are on an expansion track and are driving the demand for retail space. International retailers do not want to miss the opportunities inherent in a major emerging economy like this and are steadily further expanding their presence. New shopping centre building permits are easy to obtain and this is why VastNed Retail is focusing on the traditional, heavily visited shopping streets in Istanbul. Net initial yields on these investments declined in 2010, but still remain attractive in comparison to the net initial yields on the same type of retail investments elsewhere in Europe.
At year-end 2010, the Turkish property portfolio comprised eight properties (4% of the total property portfolio), consisting of seven high street shops in absolute Al locations and a local shopping centre in Ji^li in Istanbul. Of the seven high street shops, five are located on the Istiklal Caddesi and two on the Bahariye Caddesi. The total floor space is 16,007 sqm.
VastNed Retail's aim is to expand the Turkish property portfolio to approximately 10% of the total property portfolio. The focus is on acquiring high street shops at the very best Al locations in Istanbul. A number of streets has preference in this regard as follows: Istiklal Caddesi, Abdi Apekg Caddesi and Istasyon Caddesi in the European area and Bahariye Caddesi and Bagdat Caddesi in the Asiatic area of Istanbul. The appeal resides in the unparalleled footfall in the abovementioned streets and a retail market that is in the process of internationalising. VastNed Retail preference is to acquire these properties as vacant properties, adapt the retail space to the required modern standards and to search for a first class tenant via its international network. Up to now this strategy has proven highly successful.
VastNed Retail is focused on the very best high street shops in Istanbul, the country's argest city. Shopping has been one of the most important attractions for centuries in this 8,500-year old metropolis, where the oldest organised shopping area in the world is located: the Great Bazaar. Nowadays, 15 million, mostly young, residents enjoy shopping in the unique shopping streets of this dynamic city.
The largest portion ofthe retail portfolio is located on the renowned authentic Istiklal Caddesi, which each day attracts 2 million people with a selection of brands. The street and its surroundings teem with activity day and night. The shops offer the latest fashion, while restaurants, cafes, bars and galleries offer a wide selection of entertainment.
r a rt of our property is located along the Bahariye Caddesi in the Asiatic part of the city, where traditional shops in the old city coexist with modern retail formulas. Close to our shops is one of the largest transport junctions in Istanbul, with connections to busses, trains and ferries.
VastNed Retail's high street shops vary in size from 200 to 3,000 sqm, which enables us to provide for all of the needs of local and international retailers. Units larger than 1,000 sqm are exceptionally scarce; however, VastNed has such buildings at its disposal. Such properties are much sought after by leading international fashion retailers.
Istanbul, where Asia and Europe meet, absorbed many different peoples and cultures throughout its long history. This legacy is reflected in the unique structure of its shopping streets and the population's modern shopping habits. And in our high street shops it is easy for retailers to introduce new trends and brands to shoppers.
The relatively low average occupancy rate is due to the strategy mentioned above. The occupancy rate at year-end 2010 was 95.8% (year-end 2009: 84.8%) and is expected to continue to rise in 2011.
A total of 5 leases representing a total value of € 0.9 million in gross rental income were concluded in 2010. This included new leases as well as lease renewals, which constitute 42.9% of the theoretical gross rental income. These leases were on average concluded at 19.1 % above the old or expected rent level. Examples of new leases are: 195 sqm by lingerie specialist Penti at Bahariye Caddesi 66B in Istanbul and by the coffee chain Tchibo originating from Germany at Bahariye Caddesi 55 in Istanbul. Furthermore, the British fashion chain TopShop has extended its lease for 1,170 sqm on Istiklal Caddesi at an increase of 48.3% over the previous rent level.
No lease incentives were granted in 2010.
Most of the current tenants can be categorised as national or international retailers of high standing. The 5 largest tenants account for 75.6% of total gross rental income.
For each external appraisal, the appraiser is asked to render an opinion on the market rent level. On average, the Turkish property portfolio was let at 12.9% below the market level.
In Turkey, leases are usually concluded for a period of five years. Following the expiry of the leases there are ample opportunities for making adjustments designed to approach market level rent. The graph on page 80 shows the expiry dates ofthe Turkish property portfolio. The average term of the leases is 4.1 years. The average time remaining until the tenant's next termination date is 1.2 years.
Two acquisitions for a total of € 47.9 million were made in 2010. This involved two properties on Istiklal Caddesi in Istanbul both of which will be renovated prior to being let.
D/sposo/s There were no disposals in 2010.
The value movements in investment properties in 2010 totalled € 2.2 million positive (2009: € 0.4 million positive). The net yield at year-end 2010 amounted to 5.8% (year-end 2009: 5.8%).
The Portuguese property portfolio comprises nine high street shops (1 % ofthe total property portfolio) which for a large part are let to the chain of opticians MultiOpticas.
This property portfolio was fully let during 2010. No letting movements took place.
External appraisals have resulted in a value movement of € 0.2 million negative (2009: € 0.9 million negative). The net yield at year-end 2010 amounted to 8.8% (year-end 2009: 9.3%).
| As at 31 December 2010 (x € 1 million) | Appraisal value |
Theoretical gross rental income |
Year-end occupancy (in%) |
Number of tenants |
GLA (in sgm) |
|
|---|---|---|---|---|---|---|
| 1 | Istanbul, IstiklalCaddesi 161!) | 28.2 | n/a | n/a | n/a | 4,700 |
| 2 | Istanbul, Istiklal Caddesi 851) | 23.8 | n/a | n/a | n/a | 3,650 |
| 3 | Istanbul , Istiklal Caddes i 3 4 | 10. 8 | 0.5 | 100. 0 | 1 | 1,170 |
| 4 | Istanbul, Istiklal Caddesi 119 | 6.4 | 0.4 | 91.5 | 2 | 495 |
| 5 | Istanbul , Istiklal Caddes i 9 8 | 4.9 | 0.3 | 100.0 | 1 | 530 |
| Total | 74.1 | 1.2 | 98.0 | 10,545 |
1 Investment properties in pipeline
As at 31 December 2010
| Theoretical | Theoretical | ||||
|---|---|---|---|---|---|
| gross rental | gross rental | ||||
| income | income | Number of | GLA | ||
| Tenants | (x€ l million) | {\n%) | units | (in sqm) | |
| 1 | TopShop | 0.5 | 25.0 | 1,170 | |
| 2 | &Style | 0.3 | 16.3 | 170 | |
| 3 | Turkcell | 0.3 | 14.9 | 530 | |
| 4 | Tchibo | 0.2 | 10.1 | 400 | |
| 5 | Koc | 0.2 | 9.3 | 1,750 | |
| 6 | Penti | 0.1 | 6.8 | 195 | |
| 7 | ParkYonetimi | 0.1 | 6.2 | 2,250 | |
| 8 | Elysium Sport | 0.1 | 6.0 | 1.580 | |
| 9 | Istanbul Universitesi | <0.1 | 1.9 | 160 | |
| 10 | DeCaena | <0.1 | 1.4 | 139 |
Expiry dates and renewal dates of lease contracts (weighted for gross rental income). Average duration based on first break is 1.2 years and based on end contract 4.1 years.
Economic growth
6 4 2 0 -2 •A -6 2010 201 IE 2007 2008 2009 2010 201 IE
10 8 6 4 2 0 2007 2008 2009 2010 2011E 2007 2008 2009 2010 2011E
Unemployment as % of working population
Growth consumer spending
Food 23 Non-food 75 Other 2
High street shops 94 Shopping centres 6
The aim of VastNed Retail in terms of personnel and organisation is to create a permanently challenging working climate where its staff can develop and grow further. The corporate culture at VastNed Retail can be described as open, transparent and informal. VastNed Retail has operations in five core countries: the Netherlands, Spain, France, Belgium and Turkey. Each core country has its own organisation, accommodated in a so-called country team. These teams have a considerable degree of independence, but operate within the framework of a clear 'VastNed Group vision'. There are regular meetings between the teams in the various countries about subjects that affect all the countries, for example developments in sustainability, changes to accounting principles, developments relating to property valuations and the rental and investment markets. This allows knowledge and experience to be exchanged and the Group's objectives and procedures to be made more specific.
Challenging objectives are formulated in the annual performance evaluation interview with each staff member following mutual consultation. The employee's objectives are matched to those of the Group so that employees' personal development is aligned with the Group's interests. The following table gives some personnel statistics. The management team in the Netherlands works for both VastNed Retail and VastNed Offices/Industrial. The country teams carry out the following tasks, supported by the head office as needed depending on the team size: management, asset management, property management, (technical) project management and finance 81 control. In addition, there are various staff functions in IT and research, and for secretarial, tax and legal services. The majority of these staff functions are centralised at the Rotterdam head office, providing services to both VastNed Retail and VastNed Offices/Industrial. The Belgian team in Antwerp also has a relatively large staff department, partly due to the stock exchange listing of Intervest Retail and Intervest Offices.
| Geographical spread | 2010 | 2009 |
|---|---|---|
| Rotterdam, Netherlands | ||
| Retail | 17 | 17 |
| Offices/Industrial | 12 | 12 |
| Board and staff | 18 | 17 |
| Antwerp, Belgium | ||
| Intervest Retail | 10 | 11 |
| Intervest Offices | 16 | 17 |
| Madrid, Spain (Retail) | 13 | 11 |
| Paris, France (Retail) | 19 | 18 |
| Istanbul, Turkey (Retail) | 3 | 2 |
| Frankfurt, Germany (Offices/Industrial) | 1 | 1 |
| Total | 109 | 106 |
| Number of employees joining | 10 | 6 |
| Number of employees leaving | 3 | 4 |
| Male/female as at 31 December | 56/53 | 56/49 |
The number of employees joining on balance is primarily related to France and Turkey. In France this is the result of taking on the management of a shopping centre in-house. The costs of these employees are charged on to the tenants. In Turkey, there was a limited expansion in the personnel complement due to the growth of the portfolio there.
VastNed Retail intends to organise and carry out its activities in a sustainable way, in order to as much as possible mitigate the negative impact of its activities on the environment. A sustainable, increasingly farther-reaching, economically responsible method of work is being introduced on a phased basis, in which the basic premise is the satisfaction of the tenant.
The objectives VastNed Retail has set for itself in relation to sustainability are:
The applicable preconditions are as follows:
The main areas of focus and actions during the reporting year consisted of developing communications with all stakeholders, reducing the impact of VastNed Retail's activities on the environment, implementing performance measurement systems, and developing and implementing the sustainability policy in 2011 and subsequent years. These areas are discussed below, and include the follow-up actions for 2011.
Communication with all VastNed Retail stakeholders, such as tenants, shareholders and employees took further shape during the reporting year on the basis of various publications. Communications focused on shareholders were primarily effected via press releases and VastNed's magazine 'Behind the Facade'. Coincidental with the appearance of this annual report, the information on VastNed Retail's website will be significantly expanded. The annual report will limit itself to covering the main policy areas and the results highlights concerning the reporting year, and the main areas of focus for the following year. The website will contain more detailed information concerning the sustainability organisation, policy, results achieved and the plans for the coming years. The latest developments and results will also be regularly covered by the website. The further development of communication to all stakeholders concerning the area of sustainability is also a key area for attention in 2011.
VastNed Retail has started looking for renewable energy sources for supplying the electricity that it purchases for its tenants, by analysing the purchasing conditions of electricity suppliers on the one hand and by investigating opportunities for generating renewable energy at the site of the retail properties held in VastNed Retail's portfolio on the other.
In Belgium and the Netherlands, VastNed Retail has succeeded in concluding contracts at no additional cost for its tenants for supplying electricity generated using hydropower. In Belgium this contract was signed during 2009 and in the Netherlands at the beginning of January 2010. In both countries, the electricity purchased for tenants throughout 2010 was therefore derived from a renewable energy source. CO2 emissions related to the consumption of electricity in the Netherlands and Belgium were consequently reduced to zero. This is not yet possible in other countries, because there is a price differential there to the detriment of renewable, green energy. As soon as there are opportunities for greening energy sources without additional costs to the tenant, VastNed Retail will sign contracts with suppliers for this purpose.
The feasibility of generating electricity at the site of our retail properties was investigated in Spain, France and Belgium. This was motivated by the tax incentives available in these countries for putting solar panels on buildings. The tax incentive was however abolished or phased out in 2010 by the various governments for budgetary reasons. There is a possibility that a project can nevertheless be completed in 2011 in Belgium. A further investigation will be conducted in 2011, to determine whether there are any non-subsidised opportunities for generating renewable energy at the site of retail properties in the property portfolio.
VastNed Management has implemented a number of sustainability initiatives for its own organisation. For example, by monitoring its own energy consumption, opportunities for achieving savings were identified and implemented. In addition, the number of electrical appliances was reduced by promoting more efficient use. On the procurement side, sustainable materials are being purchased. The most important example of this is the switch over to recycled printing paper without compromising on print quality. The purchase of energy efficient business cars is promoted and the purchase of cars that are not sustainable is being discouraged. The electricity used is derived from hydropower and all other C02-emissions produced, for example through air travel, commuting traffic and office heating, are offset via Nuon and the Climate Neutral Croup. In this way VastNed Management activities were made C02-neutral in the reporting year.
Sustainability in the retail market is characterised by a number of complex interrelationships. The retail formula carried in a retail space significantly impacts energy consumption in that retail space, for example. Due to the fact that the retail formula is the exclusive domain of the retailer, the owner ofthe retail space has only a limited ability to influence sustainability here. In addition, the ownership of most shopping centres is not entirely in the hands of a single owner and there is an Owner's Association that controls the management of the shopping centre. That makes the shopping centre's manager primarily responsible for the sustainability aspect.
Objectification through the use of benchmarks facilitates discussion between owner and tenant, and in the case of shopping centres, between owners. Benchmarking for shopping centres or individual retail spaces is a good method for obtaining an objective picture of the performance of a shopping centre or individual retail space in terms of sustainability and helps in setting objectives for specific retail properties in this area. This is in part why VastNed Retail is a strong advocate of benchmarking and leading benchmarking initiatives were actively supported in 2010. In addition, and definitely as important, benchmarking provides greater insight into the performance of VastNed Retail's retail portfolio for all other stakeholders.
Benchmarking is still in its infancy and the first serious initiatives really only got off the ground in 2010. The VastNed Croup is supporting two key initiatives in this area, namely the International Sustainability Alliance (ISA) and the sustainability certification of buildings based on the BREEAM-ln-Use (BIU) International Certificate. Both initiatives are also supported by other large international parties who believe that benchmarking in the area of sustainability should be developed. By supporting these initiatives, VastNed Retail is jointly facilitating the development of benchmarking in the area of sustainability and VastNed Retail in this way also collects essential knowledge about its own portfolio as well.
The ISA comprises 18 founding members and 11 associate founding members. This group represents more than 150 million sqm in commercial property and as such is the most important initiative in the area of benchmarking sustainability at the present time. The objective of the ISA is to collect quantitative building data in a database for the purpose of comparing the performance of the different buildings in the database. The founding members, which include VastNed Retail as well, jointly determine ISA's
direction and regularly meet for this purpose. The organisation is administratively supported by the BRE Trust, a non-profit organisation in the area of sustainability vested in the United Kingdom. The first benchmark was published in October 2010 concerning a limited group of properties contained in this database. In October 2011, the first really comprehensive publication of the benchmark is expected to be released at the EXPO Real in Germany. The Key Performance Indicators related to sustainability are being maintained via the ISA. VastNed Retail assumes that starting in 2012 these Key Performance Indicators will have the potential of contributing to the implementation of VastNed Retail's sustainability policy. VastNed Retail will actively contribute to the further development ofthe ISA and the materialisation of the ISA benchmarking initiative.
The quantitative data from the ISA database can be supplemented with the qualitative assessment of a building's sustainability characteristics derived from a BIU International Certificate. This involves an independent assessment of many sustainability factors of a building. VastNed Retail conducted a pilot during the reporting year involving 13 retail properties in its property portfolio that sharply differ from each other. For 5 retail properties it was concluded that the methodology is not suitable for the time being, because the larger portion ofthe technical installations in these properties are part of the retail formula and not the retail property itself. For 8 retail properties, primarily shopping centres, a certificate was awarded. On average, these 8 retail properties scored over 51% ofthe maximum number of points, which VastNed Retail considers as better than average, because a very high score of between 85% and 100% of the maximum number of points for existing retail properties is considered exceptional.
The pilot was conducted jointly within the VastNed Group with the VastNed Offices/Industrial sister fund. The first BIU International Certificate was presented in June 2010 to this fund for a German office property. The VastNed Croup was tracked during the reporting year by various other major international investors that also carried out a BIU International certification pilot. The experience gained with this form of certification is important to VastNed Retail for the further development of its sustainability policy and for the certification body for the further development ofthe BIU International Certificate (which is currently still mostly based on the original, older British BIU Certificate).
The certification was adopted throughout the organisation, which first of all resulted in a high level of commitment to sustainability and secondly taught the organisation a great deal in this area. The experience gained with the pilot is positive and justification for certifying additional retail properties using this method. At the beginning of 2011 a further evaluation of the certificates obtained to date will be carried out and used as a basis for developing a programme designed to improve sustainability performance where this is economically feasible. In 2011, over 10 retail properties will apply for a BIU International Certificate and in parallel with the certification, a programme will be developed here as well with the objective of improving sustainability performance.
The VastNed Retail workgroup meets once a quarter to discuss sustainability-related actions and their implementation. This workgroup consists of the responsible individual in the management team, the VastNed Croup's Sustainability Manager, the Country Directors and the Technical Managers. In addition to the items reported above, during the reporting year attention was primarily focused on creating sustainability awareness within the VastNed Retail organisation. Another subject for discussion was the further development of the sustainability policy and the associated instruments. In 2011 this workgroup will meet with the same frequency in order to give further substance to the development and implementation of VastNed Retail's sustainability policy.
In accordance with the EU Transparency Directive as implemented in Section 5.3 of the Act on Financial Supervision, the Board of Management hereby declares that, insofar as it is aware:
The Corporate Governance Code Monitoring Committee presented a new, comprehensive version of the Dutch Corporate Governance Code ('the Code') on 10 December 2008. The Code came into effect on 1 January 2009. The provisions of this new Code were already applied by VastNed Retail in its 2008 annual report. In December 2010, the Monitoring Committee published the findings of its (second) investigation into compliance with the Code. This investigation primarily focused on the role of shareholders, and the Supervisory Board and its composition. VastNed Retail read these findings with Interest. The report did not provide any reason for making changes to its Corporate Governance policy.
One ofthe Code's components specifically deals with risk management. The Code stipulates that a company's annual report must include a description ofthe principal risks to which it is exposed in relation to the implementation of its strategy. The Board of Management must in that regard make a distinction between financial reporting risks and operational risks. Risk management is extensively dealt with below and elsewhere in this annual report.
The investment property categories, countries and size of the properties VastNed Retail wishes to invest in are specified in the Profile and Strategy chapter. It opts in this regard to invest primarily in shops in euro zone countries characterised by stable political and economic climates, embedded in generally clear rent and tax legislation and regulations. Rent and value developments as well as the occupancy rates of the shop investments are to an important extent linked to the demand for retail locations, which is itself largely determined by the nature and magnitude of consumer spending and the dynamics of local and international retailers.
The addition of Turkey in 2007 as a new investment country meant the addition of a country with a higher risk profile due to the current political and economic climate. The risk is mitigated however, by currently limiting investments in this country to a maximum of 10% ofthe total investment portfolio and by clearly focusing on investments in (solitary) shops located in the best shopping streets in Istanbul, with its rather more Western orientation.
Because VastNed Retail invests primarily in the euro zone and only to a limited extent in Turkey, the currency risk is limited. Moreover, the risk with respect to the Turkish property portfolio is further reduced by concluding leases in that portfolio in euros or US dollars.
The investments are in part financed by loan capital on the basis of a sound financing and interest rate policy. The aim in this regard is to achieve relatively conservative financing ratios between equity and loan capital. In principle, a maximum of 50% of the market value of the investments is financed by loan capital. Furthermore, efforts are made to limit the segment of the portfolio financed by short-term loans to a quarter of the total loan capital. The financing agreements contain more favourable conditions; the ratio is based on a solvency - calculated as equity plus deferred tax liabilities divided by the balance sheet total - of at least 45%.
Due to the capital-intensive nature of its operations, VastNed Retail is sensitive to interest rate developments, which can affect both the value ofthe investment properties and the current cash flows and therefore the direct investment result. The interest rate risk is limited however, by arranging interest rate derivatives with large international banks. This means that the interest rate is fixed for a minimum of two-thirds of the loan portfolio with a term of at least three years. The interest rate derivatives are arranged in such a way as to ensure interest rate review dates are spread across years.
The Risk Management chapter includes an overview of the risks identified within VastNed Retail and also specifies the way in which these risks are managed. An important element of the internal risk management and control system is the totality of internal control measures and administrative and organisational procedures as set out in the Administrative Organisation handbook. In our view, this handbook meets the requirements of the Act on Financial Supervision and associated regulations.
Attention was again devoted to risk management in 2010 by the Supervisory Board and the Board of Management, as well as the organisations in each of the countries in which VastNed Retail operates.
A key point in the area of risk management was the financing of the property portfolio. Last year, given the consequences of the financial crisis, it was considered desirable to further expand access to financial sources. This was actioned by VastNed Retail in 2010 through a private placement of € 75.0 million.
Furthermore, the investment policy was subjected to in-depth review in the context of risk management. Given the economic developments, the associated impact on consumer spending, the desires of retailers and consumers and developments related to internet sales, it was decided to increase the focus ofthe investment policy on investments in (solitary) shops located in the best shopping streets in mediumsized and large cities.
In addition to these issues, a number of important risks were addressed by the Board of Management as well as in meetings of the audit committee and Supervisory Board in accordance with the annually adopted work plan. These meetings also addressed the design and operation ofthe associated risk management measures in place In relation to, among other things, strategic risks, emergency risks (insurances, solvency of the insurer), financial reporting risks, compliance risks (rules ofthe AFM and NYSE Euronext, as well as those associated with licences and safety regulations), financing and refinancing risks, interest rate risks, IT risks and tax and legal risks. No significant changes were deemed necessary with respect to the internal risk management and control systems in relation to these risks.
With respect to the financial reporting risk, the Board of Management is of the opinion that the risk management and control systems in place provide a reasonable degree of assurance that the financial reporting is free of material misstatements. The Board of Management also believes that these risk management and control systems functioned throughout the financial year in such a way that a reasonable degree of assurance exists that the financial reporting is free of material misstatements. There were no material changes to the administrative and organisational procedures during the
financial year. No material shortcomings were identified in the risk management and control systems in place to manage financial reporting risks.
The following is an overview based on the balance sheet position as at the end of 2010 of the potential effects, all other things being equal, of changes in the risk factors listed below:
While negative investment results were reported in 2008 and 2009 due to a decrease in value of the property portfolio, 2010 once again exhibited increased value trends resulting in a positive investment result of € 99.2 million in 2010 (2009: € 61.4 million negative).
The 2010 investment result comprises the direct investment result of € 67.8 million (2009: € 68.6 million) and the indirect investment result of € 31.4 million positive (2009: € 130.0 million negative).
The direct investment result decreased from € 68.6 million in 2009 to € 67.8 million in 2010, a decrease of 1.2%. The decrease is primarily due to the negative like-for-like growth in the net rental income of approximately € 3.9 million primarily due to a lower occupancy rate in the Spanish and French property portfolios. There was a limited decrease due to disposals completed in 2009 within the Dutch property portfolio which was offset by the acquisitions made within the Dutch, Turkish and Spanish property portfolios. In addition, the interest expense decreased as a result of a share issue effected in the middle of September 2009 through which over € 75 million was raised, which amount was first used to pay off short-term loans. This amount was reinvested in 2010, albeit for a share in retail investments in Turkey that due to renovations will only fully contribute to the direct investment result during the course of 2011 and 2012. Furthermore, general expenses and income taxes declined in comparison to 2009 in the amount of €0.5 million and € 1.0 million respectively. The decline in income taxes is due to the decline in the taxable investment result in Spain and one-time tax benefits in the amount of € 0.2 million.
Following the sharp drops in value reported in 2008 and 2009, the property portfolio in 2010 on balance exhibited an increase in value in the amount of €35.5 million positive (approximately 1.9% of its initial value in 2010). The increase in value is primarily attributed to the increased demand in the investment market for retail property investments with high occupancy rates. This resulted in a slight downward pressure on yields, particularly in the Netherlands and France. The Spanish property portfolio continued to exhibit a decrease in value amounting to approximately 1.1% (€4.5 million) in relation to its initial value in 2010. The negative movement in the value of the Spanish portfolio was more due to market rent and occupancy rate developments than yield shifts. The yields for retail property investments in Spain appear to be stabilising and, in spite ofthe difficult economic climate there, once again tend to exhibit a limited decline.
As a result of these value developments, the indirect investment result, taking the allocation of deferred tax liabilities of mainly the Spanish property portfolio, the positive result from sales in the amount of
€ 0.6 million and the part attributable to non-controlling interests into account, amounted to positive €31.4 million (2009: negative € 130.0 million).
The total gross rental income decreased from € 130.6 million in 2009 to € 126.5 million in 2010. This decline is further specified for each country in the table on page 92.
€ 1.5 million ofthe increase is related to the additional rental income derived from the acquisitions made in the Netherlands in 2009 and 2010. The major portion (approximately € 1 million) relates to the additional rental income from the Lelystad city centre development located at the De Promesse completed in the fourth quarter of 2009. The acquisitions made in the third and fourth quarter of 2010, consisting ofthe retail units in the Zuidplein shopping centre in Rotterdam, shopping centre Overvecht in Utrecht and the Nieuwstraat in Spijkenisse, only made a limited contribution to growth in 2010. In addition, rental income in 2010 increased due to the acquisition of three high street shops in Turkey in 2009 (€ 0.5 million), the purchase of a high street shop in Malaga, Spain in 2010 (€ 0.2 million) and due to the expansion of the Val Thoiry shopping centre in France in 2009 with a do-it-yourself specialist Leroy Merlin (€ 0.4 million).
The decrease in gross rental income in 2010 was largely due to the sale of individual retail properties in the Netherlands in the second half of 2009 for a total in excess of €60 million. Disposals in 2010 were limited in size (approximately € 8.5 million).
The largest decrease in rental growth was in the French property portfolio with a decrease of €2.6 million (10% decline). On the one hand rental income declined as a result ofthe loss ofthe rental yield guarantee, effective November 2009, which had been negotiated as part ofthe purchase of Lille's retail portfolio in 2007 (€1.0 million decline). The loss of this guarantee must be further offset over the coming years by implementing significant rental increases in this property portfolio and the sale of vacant apartments. In addition, a relatively large number of leases was subject to negative indexation due to a negative movement of approximately 4% in the construction costs index (ICC) in 2010. Furthermore, the average occupancy rate declined from 96.9% in 2009 to 92.9% in 2010, which resulted in a decline of € 1.0 million in rental income. The lower occupancy rate is primarily related to the vacancy rate in the shopping centres in Limoges (occupancy rate at year-end 2010: 81%) and Dunkirk (following the leasing ofthe supermarket the year-end 2010 occupancy rate is 87%), as well as the vacancy rate of a number of offices located above shops, such as in Rue Saint-jean, Nancy and Rue de Rivoli, Paris. The contractual rent of various units was reduced, in part due to the negative movement in the construction costs index mentioned above. On balance a negative rental growth of € 0.3 million was realised as a result. The contractual rents for these units in recent years had risen above market rents as a result of high indexation.
Like-for-like rental growth in Spain was negative € 1.9 million. Due to the adverse economic climate, the average occupancy rate of the Spanish property portfolio declined from 93.9% in 2009 to 91.7% in 2010, which resulted in a decrease of € 0.8 million in gross rental income. This was primarily due to the Zara unit in the shopping centre in Badalona becoming vacant and the completion ofthe conversion ofthe cinema into a retail unitin the Alicante retail park. The Zara unit was let to the electronics retailer Worten at the beginning of 2011. In addition, € 1.2 million of the decline (4%) was due to the partially temporary rental decreases and lease discounts primarily as a result of the decline in retail revenues realised by tenants due to the difficult economic climate in Spain.
A positive like-for-like growth was realised in the Netherlands and Belgium in the total amount of € 0.6 million. The increase due to lease renewals and indexation was somewhat curbed due to a limited decline in the occupancy rate. The average occupancy rate in the Netherlands and Belgium in 2010 amounted to 97.6% and 99.0% respectively.
Operating expenses, expressed as a percentage of gross rental income increased from 11.4% to 11.7%, and consequently amounted to € 14.8 million. The relative increase is primarily due to the lower occupancy rate, which among other things caused net service charge expenses to increase. Furthermore, local taxes in Spain increased, which was offset by a lower allocation to the provision for doubtful debts.
Following significant downward valuations in 2008 and 2009, particularly in the Spanish and French, and to a lesser extent in the Dutch, property portfolios, an increase in value could once again be recognised in 2010. This reversal was already perceptible in the second half of 2009 and increased the value ofthe property portfolio in 2010 by a total of €35.5 million or almost 2% on an annualised basis (2009: negative €147.5 million). The largest relative increasesin value were observed for the properly portfolios in France (5.5%) and Turkey (2.7%, including investment properties in pipeline), followed by Belgium and the Netherlands (both approximately 1.5%). Spain and Portugal exhibited a relative decline in value of 1.1 % and 1.8% respectively in 2010. Yields were inclined to decrease once again in 2010 due to effects of the high demand for retail property investments. Developments related to rental values and occupancy rates of course have a great of deal of influence on value development.
In 2010, a limited number of small non-core retail properties was sold, mainly in the Netherlands, which had a total carrying amountatthe time of saleof €8.0 million. In addition, various apartments were sold in Belgium, as well as France (Lille). After deduction of sales costs, the net result of these sales was positive €0.7 million.
Net financing costs, including movements in the value of financial derivatives, decreased from € 33.3 million in 2009 to € 30.9 million in 2010. The table below details the calculation of the net financing costs.
(x€ 1 million)
| Net financing costs 2009 | (33.3) |
|---|---|
| Decrease as a result of the issue of shares | 1.1 |
| Decrease as a result of net sales | 0.2 |
| Capitalised interest on investment properties under renovation and in pipeline | 0.1 |
| On-balance decrease as a result of lower short-term market rate of interest, | |
| higher credit spreads and changes in working capital | 0.2 |
| Movement in value derivatives | 0.8 |
| Net financing costs 2010 | (30.9) |
|---|---|
The average interest rate for the total interest-bearing loan capital remained approximately the same at 4.1%. The market value of interest-rate derivatives not classified as a full hedge under IFRS remained virtually unchanged, partly due to the average shorter term of the derivatives and partly due to the limited movement in the market rate of interest for the relevant remaining term, in relation to 2009.
The general expenses decreased from € 7.1 million in 2009 to € 6.6 million in 2010. This decrease was largely the result of lower consulting and audit costs and miscellaneous general expenses. In France, a larger share ofthe costs could be passed on to tenants on the basis of a review of a number of leases.
Current income tax expense decreased in 2010 from € 1.2 million to € 0.2 million. The decline is due to the decline in the taxable investment result in Spain and one-time tax benefits in the amount of €0.2 million.
The movements in deferred tax assets and liabilities include an expense of € 1.7 millionoffset by proceeds (a release) of € 15.0 million in 2009. This is in part related to the limited drop in values in the Spanish property portfolio in 2010 and in part due to an increase in the value ofthe Turkish portfolio which resulted in an allocation of € 0.4 million. Finally, in relation to the limited duration of the tax losses present in a Dutch entity, a portion ofthe deferred tax assets was written down (€ 0.4 million). Value movements in the Dutch and Belgian portfolios and most of the French portfolio did not lead to movements in deferred tax assets and liabilities due to the application of tax-friendly regimes.
The investment result of € 9.5 million (2009: € 5.2 million) attributable to non-controlling shareholders comprises the direct investment result and the indirect investment result attributable to non-controlling interests of positive € 6.4 million (2009: € 6.3 million) and € 3.1 million (2009: negative € 1.1 million) respectively. The direct investment result attributable to non-controlling shareholders consisting on the one hand of the direct investment result of Intervest Retail, in which VastNed Retail has a 72.4% interest, and on the other hand of the direct investment result of the Het Rond limited partnership in Houten, in which VastNed Retail has a 50% interest, rose slightly in particular due to the somewhat higher investment result realised by Intervest Retail. The positive value movements (compared to the decreases in value in 2009) for the Het Rond in Houten, as well as Intervest Retail's property portfolio resulted in an increase in the indirect investment result attributable to non-controlling interests.
Based on the increased average number of VastNed Retail shares in issue of approximately 18.4 million shares (2009:17.0 million shares) as a result ofthe issue of shares and the stock dividend, the investment result per share was positive € 5.39 (2009: negative € 3.61). This result comprises the direct investment result per share of € 3.68 (2009: € 4.03) and the indirect investment result per share of positive € 1.71 (2009: negative €7.64).
The development of the direct investment result per share was as follows (x € 1):
| Direct investment result 2009 | 4.03 |
|---|---|
| Like-for-like growth in net rental income | (0.21) |
| Increase as a result of acquisitions after deduction of interest expenses | 0.07 |
| Decrease as a result of disposals after deduction of interest income | (0.06) |
| Capitalised interest on investment properties under renovation and in pipeline | 0.01 |
| Decrease in financing costs due to movement in short-term interest rate | |
| and change in working capital | 0.01 |
| Effect of the issue of shares | (0.24) |
| Decrease in general expenses | 0.03 |
| Decrease in current income tax expense | 0.05 |
| Increase in direct investment result attributable to non-controlling interests | (0.01) |
Direct investment result 2010
3.68
| Netherlands | Spain | France | Belgium | Turkey | Portugal | Total | |
|---|---|---|---|---|---|---|---|
| Cross rental income 2009 | 49.1 | 31.4 | 27.0 | 20.8 | 1.2 | 1.1 | 130.6 |
| Acquisitions | 1.5 | 0.2 | 0.3 | _ | 0.5 | - | 2.5 |
| Disposals | (2.3) | - | (0.1) | (0.2) | - | - | (2.6) |
| Like-for-like rental growth | 0.2 | (1.9) | (2.6) | 0.4 | - | - | (3.9) |
| Cross rental income 2010 | 48.5 | 29.7 | 24.6 | 21.0 | 1.7 | 1.1 | 126.6 |
| Operating expenses1 ) |
(6.1) | (4.1) | (2.5) | (1.8) | (0.3) | - | (14.8) |
| Net rental income 2010 | 42.4 | 25.6 | 22.1 | 19.2 | 1.4 | 1.1 | 111.8 |
| Operating expenses in % of | |||||||
| gross rental income: | |||||||
| - in 2010 |
12.6 | 13.8 | 10.2 | 8.6 | 17.6 | - | 11.7 |
| - in 2009 |
13.3 | 12.4 | 9.1 | 9.0 | 13.5 | (2.7) | 11.4 |
1 Including ground rents paid and net service charge expenses.
| Fixed | Floating | % | ||
|---|---|---|---|---|
| interest1 ) |
interest | Total | of total | |
| Long-term debt | 542.7 | 69.4 | 612.1 | 74.1 |
| Short-term debt | 88.3 | 125.2 | 213.5 | 25.9 |
| Total | 631.0 | 194.6 | 825.6 | 100.0 |
| % of total | 76.4 | 23.6 | 100.0 |
^HH I Contract revision ^•• H Interest revision 220 200 180 160 140 120 100 80 60 40 20 2.3% I 4.9% 4.6% 5.0% . ", m a !•••• 5.5% 2011 2012 2013 2014 2015 2016 2017 2018 2019-
1 Interest-rate derivatives taken into account.
In 2010, VastNed Retail invested the proceeds of the share issue effected in the second half of 2009 amounting to approximately € 75 million. In addition, VastNed Retail in the fourth quarter of 2010 successfully placed a long-term bond loan in the amount of € 75 million with an institutional investor in the United States (private placement bond). This was VastNed Retail's first transaction in the market for private placement bonds. With this transaction, VastNed Retail has expanded its financial sources and extended the term of its loans portfolio. The loan consists of two tranches of €37.5 million each with a term of 7 and 10 years respectively. The tranches were placed at a fixed coupon rate of 4.79% and 5.46% respectively.
As at 31 December 2010, VastNed Retail's balance sheet showed a sound financing structure with a loan-to-value ratio of 41.4% (39.9% at year-end 2009) and a solvency ratio - calculated as group equity plus deferred tax liabilities divided by the balance sheet total - of 54.6% (55.9% at year-end 2009).
As at 31 December 2010, the loan structure was as follows:
With a solvency ratio of 54.6% and an interest coverage ratio of 3.4, VastNed Retail meets the requirements of all financing agreements with banks. In 2010, the solvency ratios for some financing agreements with banks were adjusted such that a solvency ratio of at least 45% applies to all financing agreements. Furthermore, an interest coverage ratio ranging from 2.0 to 2.5 is usually required. A negative pledge applies to most of the financing agreements, with a limited threshold for providing securities.
At the General Meeting of Shareholders of 21 April 2010, the dividend for the 2009 financial year chargeable to the freely distributable reserves was set at €4.03 per share. An interim dividend of€ 1.25 per share had already been distributed in September 2009. The final dividend was therefore € 2.78 per share, of which the compulsory cash component was € 1.10 and the optional component was € 1.68 in cash or 1 new share for every 25 shares held. Within this framework, holders of over 30% (2009: 21 %) of the shares in issue opted for stock dividend, as a result of which the number of shares increased by 230,007 shares.
On 30 August 2010, in accordance with the dividend policy, 60% ofthe direct investment result over the first half of 2010 was distributed as interim dividend at € 1.10 per share. In line with previous years, an optional dividend is proposed to shareholders with respect to the final dividend that, according to the respective choices of the individual shareholders, can be taken up entirely in cash or partly in cash and partly in the form of stock dividend chargeable to the share premium reserve. The profit for tax purposes as a minimum must be paid out in cash in order to comply with the fiscal conditions for fiscal investment institutions.
During the General Meeting of Shareholders to be held on 4 May 2011, a proposal will be submitted to declare the final dividend chargeable to the freely distributable reserves at € 2.58 per ordinary share, which isthe2010direct investment result per share of €3.68 less the interim dividend of€ 1.10 per
share. Taking into account the fiscal distribution obligation referred to in the foregoing and the share price applicable at that time, it will be possible, in addition to take-up entirely in cash, to take up the final dividend as € 1.33 in cash and a percentage to be further determined in VastNed Retail shares chargeable to the share premium reserve that will constitute an approximate value of € 1.25 per share. The final dividend will be made payable on 16 May 2011.
At the end of February 2011, the Supervisory Boards of VastNed Retail and VastNed Offices/Industrial N.V. in consultation with the Board of Management have resolved, subject to approval from the General Meetings of Shareholders, to end the collaboration at 1 January 2012. After termination, VastNed Retail will have an independent Board of Management and management organisation. The future composition of the Board of Management will be determined as soon as possible. The costs of the termination - budgeted at € 2.7 million for VastNed Retail - will be charged to the 2011 financial year.
The Asian and Latin American economies in 2010 exhibited a strong recovery, which the northern part of Europe in particular was able to profit from (with Germany as the driver for the Benelux and France). This resulted in a moderate optimism in these countries in terms of the development of employment and consumer spending. The southern part of Europe, including Spain, is still struggling under a heavy burden of public debt, persisting banking problems and high levels of unemployment. In this part of Europe, the situation is sooner one of stabilisation rather than cautious growth in employment and consumer spending. The Turkish economy exhibited strong growth in 2010. With a young and growing population, a solid competitive position and limited problems in its banking sector, the projections in terms of the Turkish economy are highly positive.
Based on the above economic developments and VastNed Retail's qualitatively sound portfolio with a solid spread, cautious rental growth is projected for VastNed Retail in 2011. Given the strong decline in the revenues realised during the economic crisis by an important segment of the tenants in the Spanish property portfolio, rent levels are expected to remain under pressure in 2011. This is expected to be partially offset by a projected limited improvement in the occupancy rate there. The acquisitions completed in 2010 are expected to start to contribute to the direct investment result in 2011. Part of these acquisitions (approximately € 50 million), however, concerns two renovation projects on Istiklal Caddesi in Istanbul. The renovation and attracting retailers for these projects is proceeding according to plan, as a result of which these projects are expected to fully contribute to the direct investment result at the end of 2011 or beginning of 2012. With the current solid financial starting position and an active acquisition and disposal policy, it will be possible to on balance still add new attractive investment properties to the investment portfolio, that will make a positive contribution to the investment result in 2011.
In terms of interest rate development, it is expected that the European Central Bank will raise the short-term interest rate in 2011 somewhat. Given VastNed Retail's conservative interest rate policy, this is expected to result in a limited increase in interest expenses in 2011.
Based on the abovementioned developments and not taking into account the costs of terminating the collaboration agreement, the Board of Management is projecting a fractional growth in the direct investment result per share in 2011.
The outlook described in the foregoing is based on current expectations, estimates and forecasts and the information available to the Company at the present time. Furthermore, the outlook is subject to certain risks and uncertainties that are difficult to assess, such as general economic conditions, interest rates, exchange rates and changes in legislation and regulations. No guarantee can therefore be given that the outlook will become a reality.
Rotterdam, 3 March 2011 The Board of Management
The VastNed Retail shares have been listed on NYSE Euronext Amsterdam since 9 November 1987 and have been included in the Amsterdam AMX index (Amsterdam Midkap Index) since 3 March 2008. The shares have also been listed on NYSE Euronext Paris since 20 December 2004. At the end of 2010, VastNed Retail decided to terminate its listing on NYSE Euronext Paris. The termination results in cost savings, while all tax benefits accruing under the French SIIC status remain protected. The last trading day in Paris was on 8 November 2010. The VastNed Retail shares continue to be marketable on NYSE Euronext Amsterdam. The average daily trading volume in 2010 was € 2.6 million, which represents an increase in comparison to 2009 (average daily trading volume of € 2.3 million). VastNed Retail uses a number of liquidity providers to ensure the shares remain continuously liquid. In 2010 Kempen & Co, the Royal Bank of Scotland and the Rabobank acted as liquidity providers for VastNed Retail. Kempen & Co acted as a paid liquidity provider, and the Royal Bank of Scotland and the Rabobank as unpaid liquidity providers.
VastNed Retail is included in a number of indices. These indices help investors in putting together their equity portfolios. As stated above, VastNed Retail is included in the AMX index. Our impression is that investors make limited use of this index as a guide to the composition of their equity portfolios. Other indices, such as those of Global Property Research (GPR) and of the European Public Real Estate Association (EPRA), play a more important role, especially for international institutional investors.
As at 31 December 2010, VastNed Retail had the following weighting in the GPR indices:
| GPR 250 Global | 0.18% |
|---|---|
| GPR 250 Global ex-North America | 0.31% |
| GPR250 Europe | 1.12% |
| GPR 250 Europe ex-UK | 1.64% |
| GPR 250 Eurozone | 2.15% |
| GPR 250 Netherlands | 12.14% |
VastNed Retail is included in the following EPRA indices as at 31 December 2010:
| EPRA/NAREIT Global | 0.16% |
|---|---|
| EPRA/NAREIT Global ex-Asia | 0.27% |
| EPRA/NAREIT Global ex-North America | 0.29% |
| EPRA/NAREIT Europe | 1.05% |
| EPRA/NAREIT Europe (UK Restricted) | 1.23% |
| EPRA/NAREIT Europe ex-UK | 1.63% |
| EPRA/NAREIT Liquid 40 | 1.21% |
| EPRA/NAREIT Liquid 40 ex-UK | 1.84% |
| EPRA/NAREIT Eurozone | 2.10% |
| EPRA/NAREIT Netherlands | 9.77% |
VastNed Retail realised the following return in 2010, expressed in euros and as a percentage of the 2009 closing price of €45.835.
| Return 2010 |
Return 2009 |
||
|---|---|---|---|
| Closing price 2010 | 51.98 | ||
| Closing price 2009 | 45.835 | ||
| Movement in share price | 6.145 | 13.4 | 27.3 |
| Dividend on 17 May 2010 Interim dividend |
2.780 | 6.1 | 7.4 |
| on 30 August 2010 | 1.100 | 2.4 | 3.5 |
| Total return | 10.025 | 21.9 | 38.2 |
Assuming immediate reinvestment of the dividends, the total return for 2010 was a positive percentage of 23.2% (2009: positive 41.6%).
At year-end 2010, the shares were trading at a 1.5% discount in comparison to the net asset value per share. The net asset value per share held by VastNed Retail shareholders, including the 2010 investment result, rose from € 51.42 (at the start of 2010) to € 52.75 (year-end 2010).
The share price rose by €6.145 in 2010. This led to a reduction in the discount. Other European property investment funds also saw their share prices rise in 2010.
VastNed Retail's total return per share exceeded the European average (GPR 250 Europe: positive 17.0%) and the Dutch average (CPR 250 Netherlands: positive 14.7%). Market capitalisation based on the share price at year-end 2010 was € 961.4 million, compared with € 837.2 million at year-end 2009. The lowest share price of € 37.05 was quoted on 8 June 2010 while the highest share price of € 52.00 was quoted on 29 December 2010.
In accordance with its current dividend policy (see the Profile and Strategy chapter), VastNed Retail paid out a final dividend for 2009 of €2.78 on 17 May 2010. The stock dividend was 1 new share for every 25 shares held. Shareholders could choose between being paid €2.78 in cash per share or € 1.10 in cash and 1 /25th of a VastNed Retail share. For this purpose, a total of 230,007 shares was issued and charged to the share premium reserve.
The total number of shares in issue at year-end 2010 was 18,495,220 with a nominal value of € 5 each. The outstanding share capital also includes 10 priority shares with a nominal value of € 5 each. No new shares were issued in 2010, other than those issued as stock dividend, nor were there any share repurchase programmes.
VastNed Retail has information on the identity of its most important shareholders. However, it is difficult to find reliable information on the exact size of their holdings. Consequently, VastNed Retail only designates those shareholders with a stake of more than 5% according to the register of the Netherlands Authority for the Financial Markets (AFM) as controlling shareholders. This register does not provide precise numbers for the shareholdings as at year-end 2010; it merely gives an indication of the brackets that the holdings are in (e.g. 5-10% or 20-25%). The following may be designated as controlling shareholders (>5% according to the AFM register):
| Nomura Asset Management Co. Ltd | 5.93% |
|---|---|
| Commonwealth Bank of Australia | 5.79% |
| Stichting Pensioenfonds ABP | 5.06% |
It is the policy of the Board of Management to inform all shareholders and other parties in the financial market in an equal manner. Comments on the quarterly, semi-annual and annual figures as well as the presentations to analysts can be followed simultaneously by all interested parties through a webcast. The presentations are announced on the website and are placed on the website. The Board of Management aims to engage in a constructive dialogue with actual and potential shareholders. In that regard, it has regular bilateral contacts with institutional investors, in which VastNed Retail only provides information that is already known in the market.
VastNed Retail attaches a great deal of importance to informing shareholders, stakeholders and other interested parties on an equivalent basis, simultaneously and on a timely basis, and in a clear and unambiguous way, and in keeping them informed of the company's state of affairs. The CEO, CFO, CIO and the Director Investor Relations are actively involved in this. Other VastNed Group employees are also involved in specific events such as property tours. A number of instruments are used to implement the investor relations policy, including investor roadshows, press releases, the annual report, the VastNed website and the newsletter Behind the Faqade.
The investor roadshows are of crucial value to Investor Relations. In 2010, meetings were held with a large number of institutional investors in the financial centres of Europe, Canada and the United States.
Financial and price-sensitive information is always disclosed to the general public through press releases as well as being reported to the financial authorities (AFM and NYSE Euronext) and placed on the website www.vostned.n/. Only information that has already been made public is commented upon in contacts with the press, individual investors and analysts. When VastNed Retail publishes its semi-annual and annual figures, it holds a meeting for analysts. When it publishes its first and nine months' results, there is a conference call to provide further information on these results to analysts. Both the analysts' meetings and the conference calls can be followed through an audio webcast on www.vostned.n/. There are no analysts' meetings, presentations to investors or direct meetings with investors in the period immediately preceding the publication of the financial reports. All dates are listed in the financial calendar at the front of the annual report.
Reports of sell-side analysts are neither evaluated nor corrected in advance other than for factual inaccuracies. VastNed Retail does not pay fees to any party for drawing up analysts' reports. VastNed Retail is currently being followed by thirteen sell-side analysts at reputable banks who regularly publish reports.
The following banks have sell-side analysts who follow VastNed Retail:
VastNed Retail received a Gold Medal Award from the EPRA for its 2009 annual report. The jury based its high rating on a number of factors, including the way in which VastNed Retail clearly describes its property portfolio with detailed information for each core country. In addition, the elaborate explanatory notes concerning the risk analyses were well received. The EPRA conducts a survey of listed property investment companies each year. The 2010 annual report is published in both English and Dutch. Only the English version is available in printed form. The Dutch version is available in PDF format at www.vostned.n/.
The website provides information about the VastNed Group in general as well as specific and extensive information about the two property funds: VastNed Retail and VastNed Offices/ Industrial. In addition, considerable attention is given to the property portfolio; nearly all the retail and office properties of VastNed Retail and VastNed Offices/Industrial respectively are included with photos. Furthermore, detailed information can also be found on investor relations, corporate governance and sustainability. The website also offers a subscription service whereby people who subscribe receive press releases, presentations and newsletters by e-mail.
The Behind the Facade newsletter takes an informal look at issues affecting the entire VastNed Group. The newsletter is for all the Company's business relations and focuses on the typical local atmosphere in the countries and cities where the VastNed Group has operations. A new layout was chosen for the newsletter at the end of 2010. Each issue will have its own theme which will have a clear relationship with the VastNed Group.
Questions may be sent to: VastNed Retail Attn Mr Arnaud du Pont, General Counsel/Director Investor Relations PO Box 4444, 3006 AK Rotterdam The Netherlands Telephone+31 10 24 24 302 [email protected]
(x€ 1,000)
| 2010 | 2009 | |
|---|---|---|
| DIRECT INVESTMENT RESULT | ||
| Gross rental income | 126,638 | 130,562 |
| Ground rents paid | (573) | (565) |
| Net service charge expenses | (1,900) | (1.777) |
| Operating expenses | (12,325) | (12,539) |
| Netrento/zncome | 111,840 | 115,681 |
| Financial income | 812 | 492 |
| Financial expenses | (31,698) | (32,949) |
| Net financing costs | (30,886) | (32,457) |
| General expenses | (6,605) | (7,091) |
| Direct imestment result before taxes | 74,349 | 76,133 |
| Current income tax expense | (181) | (1,206) |
| Direct investment result after taxes | 74,168 | 74,927 |
| Direct investment result attributable to non-controlling interests | (6,385) | (6,278) |
| Direct investment result attributable to VastNed Retail shareholders | 67.783 | 68,649 |
| 2010 | 2009 | |
|---|---|---|
| INDIRECT INVESTMENT RESULT | ||
| Value movements investment properties in operation | 37,930 | (124,103) |
| Value movements investment properties under renovation | (725) | (14,731) |
| Value movements investment properties in pipeline | (1.729) | (8,645) |
| Total value movements investment properties | 35,476 | (147,479) |
| Net result on disposals of investment properties | 682 | 2,220 |
| Value movements financial derivatives | 32 | (822) |
| Indirect investment result before taxes | 36,190 | (146,081) |
| Movement deferred tax assets and liabilities | (1,671) | 14,986 |
| Indirect investment result after taxes | 34,519 | (131,095) |
| Indirect investment result attributable to non-controlling interests | (3,126) | 1,063 |
| Indirect investment result attributable to VastNed Retail shareholders | 31,393 | (130,032) |
| Direct investment result attributable to VastNed Retail shareholders | 67,783 | 68,649 |
| Indirect investment result attributable to VastNed Retail shareholders | 31,393 | (130,032) |
| Investment result attributable to VastNed Retail shareholders | 99,176 | (61,383) |
| PER SHARE (x€ l ) | ||
| Direct investment result attributable to VastNed Retail shareholders | 3.68 | 4.03 |
| Indirect investment result attributable to VastNed Retail shareholders | 1.71 | (7.64) |
| Investment result attributable to VastNed Offices/Industrial shareholders | 5.39 | (3.61) |
The direct investments result attributable to VastNed Retail shareholders consist of net rental income less net financing costs (excluding value movements financial derivates), general expenses, current income tax expense and the part of this income and expenditure attributable to non-controlling interests.
The indirect investments result attributable to VastNed Retail shareholders consist of the value movements and the net result on disposals of investment properties, movements in deferred tax assets and deferred tax liabilities and the value movements of financial derivatives that do not qualify as effective hedges, less the part of these items attributable to non-controlling interests.
The diluted EPRA net asset value represents the fair value of equity on a long-term basis. Items that have no longterm impact on VastNed Retail, such as the fair value of derivatives and deferred taxes on the fair value of investment property, are therefore excluded.
The diluted EPRA triple net asset value represents the fair value of equity and includes fair value adjustments of all material balance sheet items that are not reported as part of the net asset value in the IFRS balance sheet.
| 31-12-2010 | 31-12-2009 | |||
|---|---|---|---|---|
| Per share | Per share | |||
| Equity VastNed Retail shareholders | 975.570 | 52.75 | 939,133 | 51.42 |
| Fair value of financial derivatives | 36,154 | 1.95 | 31,083 | 1.70 |
| Deferred taxes | 31,770 | 1.72 | 31,184 | 1.71 |
| Diluted EPRA net asset value | 1,043,494 | 56.42 | 1,001.400 | 54.83 |
| Fair value of financial derivatives | (36,154) | (1.95) | (31,083) | (1.70) |
| Fairvalue ofthe interest bearing loans1 ) |
10,764 | 0.58 | (1,051) | (0.06) |
| Deferred taxes | (16,781) | (0.91) | (16,451) | (0.90) |
| Diluted EPRA triple net asset value | 1,001,323 | 54.14 | 952,815 | 52.17 |
The EPRA Net Yield is calculated by dividing the annualised rental income as at the balance sheet date, less non-recoverable property operation expenses, by the market value ofthe property, including purchasers' costs.
The EPRA Vacancy Rate is calculated by dividing the estimated rental value of vacant space by the estimated rental value of the whole portfolio.
| 31-12-2010 | ||
|---|---|---|
| EPRA | EPRA | |
| Net Yield | Vacancy Rate | |
| Netherlands | 5.6 | 2.8 |
| Spain | 7.1 | 8.8 |
| France | 5.4 | 7.0 |
| Belgium | 5.7 | 1.2 |
| Turkey | 5.5 | 4.1 |
| Portugal | 7.3 | - |
| Total | 5.9 | 4.8 |
1 The calculation of the market value is based on the swap yield curve at year-end 2010 and the applicable credit spreads at year-end 2010.
(x€ 1,000)
| Notes | 2010 | 2009 | |
|---|---|---|---|
| NET INCOME FROM INVESTMENT PROPERTIES | |||
| Gross rental income | 4.25 | 126,638 | 130,562 |
| Ground rents paid | 4 | (573) | (565) |
| Net service charge expenses | 4 | (1,900) | (1,777) |
| Operating expenses | 4 | (12,325) | (12,539) |
| Net rental income | 111,840 | 115,681 | |
| Value movements investment properties in operation | 5 | 37,930 | (124,103) |
| Value movements investment properties under renovation | 5 | (725) | (14,731) |
| Value movements investment properties in pipeline | 5 | (1,729) | (8,645) |
| Total value movements investment properties | 35,476 | (147,479) | |
| Net result on disposals of investment properties | 6 | 682 | 2,220 |
| Total net income from investment properties | 147,998 | (29.578) | |
| EXPENDITURE | |||
| Financial income | 7 | 812 | 492 |
| Financial expenses | 7 | (31,698) | (32,949) |
| Value movements financial derivatives | 7 | 32 | (822) |
| Net financing costs | (30,854) | (33,279) | |
| General expenses | 8 | (6,605) | (7,091) |
| Total expenditure | (37.459) | (40.370) | |
| Investment result before taxes | 110.539 | (69,948) | |
| Current income tax expense | 9 | (181) | (1,206) |
| Movement in deferred tax assets and liabilities | 9 | (1.671) | 14,986 |
| (1.852) | 13,780 | ||
| Investment result after taxes | 108.687 | (56.168) | |
| Investment result attributable to non-controlling interests | (9,511) | (5.215) | |
| Investment result attributable to VastNed Retail shareholders | 99,176 | (61,383) | |
| PER SHARE (x€l) | |||
| Investment result attributable to VastNed Retail shareholders | 10 | 5.39 | (3.61) |
| Diluted investment result attributable to VastNed Retail shareholders | 10 | 5.39 | (3.61) |
(x€ 1,000)
| 2010 | 2009 | |
|---|---|---|
| Investment result | 108,687 | (56,168) |
| Value movements in financial derivatives | ||
| recognised directly in equity | (233) | (15,501) |
| Translation differences on net investments | (677) | (179) |
| Taxes related to other comprehensive income | (229) | 2,019 |
| Other comprehensive income | (1,139) | (13,661) |
| Total result | 107.548 | (69,829) |
| Attributable to: | ||
| VastNed Retail shareholders | 97,933 | (74,781) |
| Non-controlling interests | 9.615 | 4,952 |
| 107.548 | (69,829) | |
| PER SHARE (x€1) | ||
| Total result attributable to VastNed Retail shareholders | 5.32 | (4.40) |
(x€ 1,000)
| Notes | 2010 | 2009 | |
|---|---|---|---|
| ASSETS | |||
| Investment properties in operation | 12 | 1,921,861 | 1,834,252 |
| Investment properties under renovation | 12 | - | 3,100 |
| Accrued assets in respect of lease incentives | 12 | 1,586 | 1,866 |
| 1,923,447 | 1,839,218 | ||
| Investment properties in pipeline | 12 | 72,091 | 22,183 |
| Total investment properties | 1,995,538 | 1,861,401 | |
| Tangible fixed assets | 1,080 | 997 | |
| Financial derivatives | 23 | 978 | - |
| Deferred tax assets | 13 | 478 | 904 |
| Total fixed assets | 1.998.074 | 1,863,302 | |
| Debtors and other receivables | 14,16 | 8,764 | 22,474 |
| Income tax | 411 | 2,479 | |
| Cash and cash equivalents | 15,16 | 7,383 | 5,739 |
| Total current assets | 16.558 | 30,692 |
Total assets 2.014.632 1.893,994
| Notes | 2010 | 2009 | |
|---|---|---|---|
| EQUITY AN D LIABILITIES | |||
| Capital paid-up and called | 17 | 92,476 | 91,326 |
| Share premium reserve | 471.370 | 472,554 | |
| Hedging reserve in respect of financial | |||
| derivatives | (31,649) | (31,083) | |
| Translation reserve | (780) | (103) | |
| Other reserves | 344,977 | 467,822 | |
| Investment result attributable to | |||
| VastNed Retail shareholders | 10 | 99,176 | (61,383) |
| Equity VastNed Retail shareholders | 975,570 | 939,133 | |
| Non-controlling interests | 99,335 | 95,960 | |
| Total equity | 1.074.905 | 1,035,093 | |
| Deferred tax liabilities | 13 | 25,329 | 23,989 |
| Provisions in respect of employee benefits | 18 | 1,023 | 1,236 |
| Long-term interest-bearing loans | 19.23 | 612,059 | 597,616 |
| Financial derivatives | 23 | 37,290 | 37,066 |
| Long-term tax liabilities | 20 | 2,677 | 5,434 |
| Guarantee deposits | 8,564 | 8,281 | |
| Total long-term liabilities | 686.942 | 673.622 | |
| Payable to banks | 21 | 121,544 | 102,474 |
| Redemption long-term interest-bearing | |||
| loans | 19 | 92,013 | 42,138 |
| Financial derivatives | 23 | 1,211 | |
| Income tax | 3,211 | 3,813 | |
| Other liabilities and accruals | 22 | 34,806 | 36,854 |
| Total short-term liabilities | 252.785 | 185,279 | |
| 2,014.632 | 1,893.994 |
(x€ 1,000)
| Hedging | ||||
|---|---|---|---|---|
| reserve | ||||
| Capital | in respect of | |||
| paid-up and | Share premium | financial | Translation | |
| called | reserve | derivatives | reserve | |
| Balance as at 1 January 2009 | 82,088 | 407,460 | (17,864) | 76 |
| Investment result | ||||
| Value movements financial derivatives | (13,219) | |||
| Translation differences on net investments | - | - | - | (179) |
| Total comprehensive income | - | - | (13,219) | (179) |
| Share issue | 8.302 | 66,051 | ||
| Stock dividend | 936 | (936) | ||
| Costs of stock dividend | (21) | - | - | |
| Final dividend previous financial year in cash | ||||
| Interim dividend 2009 in cash | ||||
| Contribution from profit appropriation | - | - | - | - |
| öo/once os ot 3 7 December 2009 | 91.326 | 472,554 | (31,083) | (103) |
| Investment result | ||||
| Value movements in financial derivatives | (566) | |||
| Translation differences on net investments | - | - | - | (677) |
| Total comprehensive income | - | - | (566) | (677) |
| Stock dividend | 1,150 | (1.150) | ||
| Costs of stock dividend | (34) | - | ||
| Final dividend previous financial year in cash | _ | |||
| Interim dividend 2010 in cash | ||||
| Contribution from profit appropriation | - | - | - | - |
| Balance as at 31 December 2010 | 92.476 | 471.370 | (31.649) | (780) |
| nvestment result 1 |
||||
|---|---|---|---|---|
| attributable to | Equity | Non | ||
| Other | VastNed Retail | VastNed Retail | controlling | Total |
| reserves | shareholders | shareholders | interests | equity |
| 577,464 | (51,054) | 998,170 | 96,230 | 1,094,400 |
| - | (61,383) | (61,383) | 5,215 | (56,168) |
| - | - | (13,219) | (263) | (13,482) |
| - | - | (179) | - | (179) |
| - | (61,383) | (74,787) | 4,952 | (69,829) |
| - | - | 74,353 | - | 74,353 |
| - | - | (21) | - | (21) |
| - | (37,832) | (37,832) | (5,222) | (43,054) |
| (20,756) | - | (20,756) | - | (20,756) |
| (88,886) | 88.886 | - | - | - |
| 467.822 | (61,383) | 939.133 | 95,960 | 1,035,093 |
| - | 99,176 | 99,176 | 9,511 | 108,687 |
| - | - | (566) | 104 | (462) |
| - | - | (677) | - | (677) |
| 99,776 | 97,933 | 9,675 | 707,548 | |
| - | - | (34) | - | (34) |
| - | (41,117) | (41,117) | (6,240) | (47,357) |
| (20,345) | - | (20,345) | - | (20,345) |
| (102,500) | 102,500 | - | - | - |
| 344,977 | 99,176 | 975,570 | 99,335 | 1,074,905 |
(x€ 1,000)
| 2010 | 2009 | |
|---|---|---|
| CASH FLOW FROM OPERATING ACTIVITIES | ||
| Investment result | 108,687 | (56,168) |
| Adjustments for: | ||
| Value movements investment properties | (35,476) | 147.479 |
| Net result on disposals of investment properties | (682) | (2,220) |
| Net financing costs | 30,854 | 33,279 |
| Income tax | 1,852 | (13,780) |
| Cosh flow from operating activities before changes in working capital and provisions | 105,235 | 108,590 |
| Movement current assets | 4,197 | 1,522 |
| Movement short-term liabilities | (285) | 2.455 |
| Movement provisions | (213) | - |
| 108,934 | 112,567 | |
| Interest paid (on balance) | (32,558) | (29,792) |
| Income tax paid | 1,348 | (1.510) |
| Cash flow from operating activities | 77,724 | 81,265 |
| CASH FLOW FROM INVESTMENT ACTIVITIES | ||
| Acquisition of and capital expenditure | ||
| on investment properties | (108,631) | (57,086) |
| Disposal of investment properties | 17,373 | 56,952 |
| Cosh flow from property investments | (91,258) | (134) |
| Movement in tangible fixed assets | (82) | 78 |
| Cosh flow from investment activities | (91,340) | (56) |
| CASH FLOW FROM FINANCING ACTIVITIES | ||
| Share issue | - | 74,353 |
| Dividend paid | (61,462) | (58,609) |
| Dividend paid to non-controlling interests | (6,254) | (4,884) |
| Interest-bearing loans drawn down | 133,630 | 37,350 |
| Interest-bearing loans redeemed | (50.681) | (126,769) |
| Cosh flow from financing activities | 15.233 | (78,559) |
| MOVEMENT IN CASH AND CASH EQUIVALENTS | 1.617 | 2,650 |
| Cash and cash equivalents as at 1 January | 5,739 | 3.089 |
| Exchange rate differences on cash and cash equivalents | 27 | - |
| Cosh and cash equivalents as at 31 December | 7.383 | 5,739 |
VastNed Retail N.V. ('the Company' or 'VastNed Retail'), with its registered office in Rotterdam, the Netherlands, is a (closed-end) property investment company with variable capital that makes long-term investments, primarily in individual retail properties, shopping centres and retail warehouses. At year-end 2010, the investments were concentrated in the five core countries: the Netherlands, Spain, France, Belgium and Turkey.
VastNed Retail is listed on the NYSE Euronext stock exchange of Amsterdam. The listing on the NYSE Euronext stock exchange of Paris was withdrawn effective 8 November 2010.
On 20 October, 2006, VastNed Management B.V. was granted the licence by the AFM as referred to in 2:65 sub 1 part a of the Act on Financial Supervision pursuant to which it can act as manager of the Company.
The consolidated annual accounts of the Company comprise the Company and its subsidiaries (jointly referred to as 'the Croup') and the interests the Group has in associates and entities over which it exercises joint control. The company profit and loss account has been shown in abbreviated form pursuant to 2:402 of the Netherlands Civil Code.
The consolidated annual accounts of the Company are presented in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. These standards comprise all new and revised Standards and Interpretations as published by the International Accounting Standards Board (IASB) and the International Financial Reporting Interpretations Committee (IFRIC), insofar as they apply to the Group's activities and are effective on the financial years starting on or after 1 January 2010.
A number of amended standards came into effect in 2010. A large proportion of these amendments concerned minor changes as part ofthe annual IFRS improvement process. The amended Standards and Interpretations that came into effect in 2010 and are relevant for the presentation, notes or financial results ofthe Group are listed below.
The following amended Standards and Interpretations came into effect for the current financial year, but have no effect on the presentation, notes or financial results of the Group:
A number of new amendments on Standards and Interpretations had not yet taken effect in 2010, but could be applied in advance. The Group did not make use of this option. This concerns the following Standards and Interpretations:
The Group does not expect these amendments to affect equity and the investment result.
The financial statements are presented in euros; amounts are rounded off to thousands of euros, unless stated differently. Investment properties and financial derivatives are valued at fair value. The other items in the financial statements are valued at historical cost, unless stated differently.
Interim financial reports in the form of quarterly reports are presented in compliance with IAS 34 Interim Financial Reporting.
The accounting principles for financial reporting under IFRS set out below have been applied consistently within the Group for all periods presented in these consolidated financial statements.
In the presentation ofthe annual accounts in compliance with IFRS, the Board of Management has made judgements concerning estimates and assumptions that have an impact on the figures included in the annual accounts. The estimates and underlying assumptions concerning the future are based on past experience and other relevant factors, given the circumstances at the balance sheet date. The actual results may deviate from these estimates.
The estimates and underlying assumptions are evaluated regularly. Any adjustments are recognised in the period in which the estimate was revised, and in future periods as well if the estimate has an impact on these future periods.
The principal estimates and assumptions concerning the future and other important sources of estimate uncertainties at the balance sheet date that have a material impact on the annual accounts and that present a significant risk of material adjustments to book values in the following financial year are included in '29 Accounting Estimates and Judgements'.
Subsidiaries are entities over which the Company has control. Control of an entity entails that the Company has the authority, either directly or indirectly, to determine the financial and operational policies of the entity in order to obtain benefits from the operations of this entity. Potential voting rights that can be exercised or converted are taken into account in assessing whether there is control. The financial statements of the subsidiaries are included in the consolidated statements as from the date at which control is obtained until such time when control ceases. Once control is obtained, all subsequent changes in ownership interests that do not involve the loss of that control will be treated as transactions among shareholders. Goodwill is not recalculated or adjusted. Non-controlling interests are recognised separately in the balance sheet under equity. The share of non-controlling interests in the result of the Group are also recognised separately in the profit and loss account.
Balances within the Group and any unrealised profits and losses on transactions within the Group or income and expenditure from such transactions are eliminated in the presentation of the financial statements. Unrealised profits in respect of transactions with associates and joint ventures are eliminated proportionally to the interest that the Group has in the entity. Unrealised losses are eliminated in the same way as unrealised profits, but only to the extent that there is no evidence of impairment.
All acquisitions of subsidiaries are recognised using the purchase accounting method. The costs of an acquisition are valued at the fair value of the underlying assets, equity instruments issued and debts incurred or taken over at the time of transfer. Costs incurred in realising a business combination (such as consultancy, legal and accountancy fees) are recognised in the profit and loss account. Acquired identifiable assets and (contingent) liabilities are initially recognised at fair value on the acquisition date. Goodwill is the amount by which the cost of an acquired entity at first recognition exceeds the net fair value of the identifiable assets, liabilities and contingent liabilities. Changes in the consideration after the acquisition date do not result in recalculation or adjustment of the goodwill. The value of the assets, liabilities and contingent liabilities of entities acquired before 1 January 2010 is based on the accounting principles applied previously.
After first recognition, the goodwill is valued at cost less any cumulative impairment losses. Goodwill is attributed to cash-generating entities and is not amortised. Goodwill is assessed for impairment annually, or earlier if circumstances give cause. For associates, the book value of the goodwill is included in the book value of the investment in the associate in question.
Negative goodwill resulting from an acquisition is recognised directly in the profit and loss account.
The items in the annual accounts of the separate entities of the Group are recognised in the currency of the principal economic environment in which the entity operates (the 'functional currency'). The currency of the main cash flows of the entity is taken into account in the determination ofthe functional currency. As a result, the euro is used as the functional currency in all foreign entities where the Group operates.
The consolidated annual accounts are presented in euros, the Group's reporting currency. In the preparation of the annual accounts of the separate entities, transactions in foreign currencies are recognised at the exchange rate effective on the transaction date. Foreign currency results arising from the settlement of these transactions are recognised in the profit and loss account.
At the balance sheet date, monetary assets and liabilities in foreign currency are translated at the exchange rate effective on that date. Non-monetary assets and liabilities that are valued at fair value are translated at the exchange rate on the date on which the fair value was determined. Non-monetary assets and liabilities valued at historical cost are not translated.
Translation differences are recognised in the profit and loss account, with the exception of unrealised translation results on net investments and unrealised translation results on intercompany loans that are materially part of the net investment. In the preparation of the consolidated annual accounts, the items of all individual entities included in the Croup's consolidation are recognised in euros. If the annual accounts in question are drawn up in a different currency, assets and liabilities are translated into euros at the balance sheet date and income and expenses are translated at exchanges rates approximating to the exchange rates effective on the dates of the transactions. The resulting exchange rate differences are recognised as a separate component in equity ('Translation reserve'). Exchange rate differences arising from the translation of net investments in foreign activities and related hedges are also recognised in equity under 'Translation reserve'. In the event of a full or partial sale of an entity or foreign operation, the cumulative balance of this 'Translation reserve' is recognised in the profit and loss account.
Investment properties are properties held in order to realise rental income, value increases or both. Investment properties are classified as investment properties in operation when they are available for letting.
Acquisitions and disposals of property available for letting are included in the balance sheet as investment properties or designated as sold at the time when the obligation to buy or sell is entered into by means of a signed agreement, at which time the conditions of the transaction can be identified unequivocally and any contingent conditions included in the agreement can no longer be invoked, or the chance that they will be invoked is small. Upon first recognition, the investment properties are recognised at acquisition price plus costs attributable to the acquisition, including transfer tax, property agency fees, due diligence costs, and legal and civil-law notary costs.
Investment properties are classified as investment properties under renovation at such time when it is decided that for continued future use, an existing investment property must first be renovated and as a consequence is no longer available for letting during renovation.
Both investment properties in operation and under renovation are stated at fair value, with an adjustment for any balance sheet items in respect of lease incentives (see under 'Q Gross Rental Income'). The fair value is based on market value (costs borne by the buyer), i.e. the estimated value at which an investment property could be traded at the balance sheet date between well-informed and independent parties who are prepared to enter into a transaction, both parties operating prudently and without duress. Account is taken of differences between market rent and contractual rent, operating expenses, vacancy, state of repair and future developments. All investment properties in operation and under renovation are appraised at least once a year by independent, certified appraisers.
The valuation methodology is based on international appraisal guidelines (RICS Appraisal and Valuation Standards). In order to present the fair value at the relevant balance sheet date in (interim) financial statements as accurately as possible, the following system is used:
The remuneration of the external appraisers is based on a permillage of the value of the properties to be appraised.
Cains and losses resulting from a change in the fair value of an investment property in operation or under renovation are entered in the profit and loss account under 'Value movements investment properties in operation/under renovation' in the period in which they occur.
Profits or losses resulting from the disposal of an investment property are determined as the difference between the net income from disposal and the most recent published book value of the investment property. They are recognised in the period in which the disposal takes place and entered under 'Net result on disposals of investment properties'.
Investment properties in pipeline concern properties under construction or development for future use as investment properties in operation. During development or construction, all directly attributable costs necessary for preparing the property for letting are recognised as the cost price of the investment property. Overhead costs are not capitalised.
Financing costs directly attributable to the acquisition or construction of the investment property are capitalised as part of the cost price of the investment property. Capitalisation of financing costs starts at the time when the preparations for construction or renovation have started, the expenditure is made and the financing costs are incurred. Capitalisation of financing costs is terminated at the time when construction or development is complete and the investment property in pipeline is recognised as investment property in operation. For the determination of financing costs, a capitalisation percentage is applied to the expenditure. The percentage is equal to the weighted average of the financing costs of the Group's interest-bearing loans that are outstanding during the period concerned, excluding loans specifically taken out in connection with the investment properties in pipeline. Financing costs relating to these loans taken out specifically are capitalised in full.
The property under construction or in development is recognised at fair value as soon as it becomes possible to reliably determine the fair value. A reliable determination of the fair value is considered possible once substantial development risks have been eliminated. Any differences between the fair value and the cost price applicable at that time are recognised in the profit and loss account under 'Value movements investment properties in pipeline'.
Tangible fixed assets mainly comprise assets held by the Group in the context of supporting business operations, such as office furniture, computer equipment and vehicles. Tangible fixed assets are valued at cost less any cumulative depreciation and any cumulative impairment losses. Depreciation is recognised in the profit and loss account using the straight-line method, taking account of the expected useful life and residual value of the assets in question. The expected useful life is estimated as follows:
The Group uses financial interest-rate derivatives for hedging interest-rate risks resulting from its operating, financing and investing activities. In accordance with the treasury policy set by the Board of Management and the Supervisory Board, the Group neither holds nor issues derivatives for trading purposes. At first recognition, financial derivatives are valued at cost. After first recognition, financial derivatives are valued at fair value.
The fair value of financial interest-rate derivatives is the amount the Group would expect to receive or to pay if the financial interest-rate derivatives were to be terminated at the balance sheet date, taking into account the actual interest rate and the actual credit risk of the counterparty or counterparties in question at the balance sheet date. The amount is determined on the basis of information from reputable market parties.
A derivative is classified as a current asset or short-term debt if the remaining term of the derivative is less than 12 months or if the derivative is expected to be realised or settled within 12 months.
When entering into hedging transactions, the relation between the derivatives and the hedged loan positions is documented and aligned with the objectives in the treasury policy. In addition, both prospective and retrospective analyses are carried out to determine whether the hedging transactions are highly effective in compensating the risk of changes in the fair value of the hedged positions or the hedged risk of attributable cash flows. The recognition of gains and losses depends on the degree of hedging:
Changes in the fair value of derivatives designated and qualifying as fair value hedges are recognised in the profit and loss account simultaneously with the changes in the fair value of the hedged liabilities associated with the hedged risk. The Group does not currently hold any interest-rate derivatives that qualify as fair value hedges.
The Group uses interest-rate derivatives to hedge interest-rate risks of floating interest loans. Gains and losses in respect of the effective portion of the derivatives designated and qualifying as cash flow hedges are taken to group equity (after deduction of any deferred tax liabilities) under the item 'Hedging reserve in respect of financial derivatives'. The ineffective part of the financial interest-rate derivatives is recognised in the profit and loss account.
If an interest-rate derivative expires or is sold, terminated or exercised, or if the entity revokes designation of the hedge relationship, but the hedged future transaction is still expected to take place, the cumulative gain or loss at that point remains in equity and is recognised when the transaction occurs. If the hedged transaction is no longer expected to take place, the cumulative unrealised gain or loss in equity is recognised immediately in the profit and loss account.
Debtors and other receivables are stated at nominal value less a provision for possible bad debts.
Cash and cash equivalents comprise deposits, call money and bank account credit balances.
Ordinary shares and priority shares are classified as equity VastNed Retail shareholders. External costs directly attributable to the issue of new shares, such as issuing costs, are deducted from the issue proceeds and consequently recognised in the share premium reserve. In the issue price of shares, account is taken of the estimated investment result for the current financial year attributable to the shareholders of the Company up to the issuing date. The investment result included in the issue price is added to the share premium reserve. The increase in the capital paid-up and called associated with the issue of ordinary shares in respect of the stock dividend is charged to the share premium reserve, as are the costs in respect of the stock dividend.
When repurchasing the Company's own shares, the balance of the amount paid, including directly attributable costs is recognised as a movement in equity.
Dividends in cash to holders of ordinary and priority shares are charged to the other reserves in the period in which the dividends are declared by the Company.
Deferred tax assets are recognised for income tax to be reclaimed in future periods relating to offsettable temporary differences between the book value of assets and liabilities and their fiscal book value, and for the carry-forward of unused tax losses or unused tax credits. Deferred tax assets are only recognised if it is likely that the temporary differences will be settled in the near future and sufficient taxable profit will be available for compensation.
Deferred tax liabilities are recognised for income tax payable in future periods on taxable temporary differences between the book value of assets and liabilities and their fiscal book value. For the valuation of deferred tax liabilities, the tax rates are taken into account that are expected to apply in the period in which the liability will be settled, based on tax rates (materially) enacted at the balance sheet date. In valuing deferred tax liabilities, account is taken of the tax consequences of the way in which the Group expects to realise or settle the book value of its assets and liabilities on the balance sheet date. Deferred tax liabilities are not discounted.
The Croup's net liability in respect of defined benefit pension plans is calculated separately for each plan by estimating the pension rights employees have built up in return for their service during the reporting period and prior periods. The pension rights in respect of defined benefit pension plans is calculated at net present value at a discount rate less the fair value of the plan assets from which the liability is to be settled. The external actuary employs the 'projected unit credit' method for these calculations.
When the pension rights in respect of a plan are improved, the part of the improved pension rights concerning past years of service of employees is recognised as an expense in the profit and loss account on a straight-line basis over the average period until the pension rights become vested. To the extent that the pension rights vest immediately, the expense is recognised in the profit and loss account immediately. All actuarial gains and losses as per 1 January 2004, the transition date to IFRS, have been recognised. Actuarial gains and losses arising after 1 January 2004 are recognised by the Group according to the so-called 'corridor' approach. According to this 'corridor' approach, any cumulative unrecognised actuarial gains or losses exceeding 10% of the greater of the present value of the gross liability of the defined (pension) benefits or the fair value of the plan assets, are recognised in the profit and loss account for the expected average remaining working lives ofthe employees who participate in the plan. Otherwise, the actuarial gain or actuarial loss is not recognised.
If the plan assets exceed the obligations, the recognition of the assets is limited to an amount not exceeding the net total of any unrecognised actuarial losses and pension costs of past service and the present value of any future refunds from the plan available at that time or lower future (pension) premiums.
Obligations of the Croup in respect of defined contribution pension plans are recognised as expenditure in the profit and loss account when the contributions become due.
Obligations in respect of future jubilee benefits are also recognised in this provision.
Provisions are recognised in the balance sheet if the Group has a legally enforceable or actual obligation resulting from a past event and if it is probable that the settlement of that liability will require an outflow of funds. If the effect is material, provisions are made that are equal to the present value of the expenditure that is expected to be required for the settlement of the liability.
Upon first recognition, interest-bearing debts are stated at fair value less the costs associated with taking on the interest-bearing debt. After their first recognition, interest-bearing debts are stated at amortised cost, recognising any difference between the cost price and the debt to be repaid in the profit and loss account for the term ofthe debt based on the effective interest rate method. Interest-bearing debts with a term of more than one year are recognised under long-term liabilities. Any repayments on interest-bearing debts within one year are recognised under short-term liabilities.
Other liabilities and accruals are stated at nominal value.
Gross rental income from operational lease contracts is recognised on a time-proportionate basis over the duration of the lease contracts. Rent-free periods, rent discounts and other lease incentives are recognised as an integral part of total gross rental income. The resulting accruals are recognised under 'Accrued assets in respect of lease incentives'. These accruals are part of the fair value of the respective investment properties in operation and under renovation.
Service charges relate to costs for energy, doormen, garden maintenance and such, which under the terms of the lease contract can be charged on to the tenant. The part of the service charges that cannot be charged on relates largely to vacant (units in) investment properties. The costs and amounts charged on are not specified in the profit and loss account.
Operating expenses concern costs directly connected to the operation of the property, such as maintenance, management costs, insurance, allocation to the provision for doubtful debtors and local taxes. These costs are attributed to the period to which they relate. Costs incurred when concluding operational lease contracts are recognised in the period in which they are incurred.
Net financing costs consist of interest expenses on loans and debts attributable to the period, calculated on the basis of the effective interest rate method, less capitalised financing costs on investment properties and interest income on outstanding loans and receivables. Net financing costs also include gains and losses resulting from changes in the fair values of the financial derivatives. These gains and losses are recognised immediately in the profit and loss account, unless a derivative qualifies for hedge accounting (see under 'H Financial Derivatives').
General expenses concern, inter alia, personnel costs, housing costs, IT costs, publicity costs and the costs of external consultants. Costs relating to the internal commercial, technical and administrative management of the property are attributed to operating expenses.
Income tax comprises taxes currently payable and recoverable as attributable to the reporting period and the movements in deferred tax assets and deferred tax liabilities (see under 'L Deferred Tax Assets and Liabilities'). Income tax is recognised in the profit and loss account, except to the extent that it concerns items that are taken directly to equity, in which case the tax is recognised under equity.
The taxes payable and recoverable for the reporting period are the taxes that are expected to be payable on taxable profit in the financial year, calculated on the basis of tax rates and tax legislation enacted or substantively enacted at the balance sheet date, and corrections to taxes payable on previous years. Additional income tax in respect of dividend payments by subsidiaries is recognised at the same time as the obligation to pay out the dividend concerned.
The cash flow statement is presented based on the indirect method. The funds in the cash flow statement consist of cash and cash equivalents. Income and expenditure in respect of interest are recognised under the cash flow from operating activities. Expenditure in respect of dividends is recognised under the cash flow from financing activities.
The segmented information is presented on the basis of the countries where the investment properties are located. These reporting segments are consistent with the segments used in the internal reports.
| Netherlands | Spain | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | |
| Net rental income | 42,387 | 42,526 | 25,646 | 27,478 |
| Value movements investment properties in operation | 11,859 | (18,857) | (3,756) | (76,374) |
| Value movements investment properties under renovation | (725) | (13,85 ) | ||
| Value movements investment properties in pipeline | (457) | (5.006) | ||
| Net result on disposals of investment properties | 409 | 1,854 | ||
| Total net income from Investment properties | 54.198 | 20,517 | 21.165 | (62.747 |
Net financing costs General expenses Income tax Non-controlling interests
| Netherlands | Spai | |||
|---|---|---|---|---|
| 2010 | 2009 | 2010 | 200 | |
| Investment properties in operation | ||||
| Balance as at 1 January | 696,897 | 747,843 | 409,291 | 479,638 |
| - Acquisitions |
42,164 | 5,162 | - | |
| - Capital expenditure |
1,532 | 1,463 | 2,119 | 2,437 |
| - Taken into operation |
2,210 | 14.700 | 3,100 | 3,590 |
| - Transferred to investment properties under renovation |
||||
| - Disposals |
(5,792) | (48,252) | - | |
| 737.011 | 715,754 | 419,672 | 485,665 | |
| - Value movements |
11,859 | (18,857) | (3,756) | (76,374 |
| - Exchange rate differences |
- | - | ||
| Balance as at 31 December | 748,870 | 696,897 | 415,916 | 409,29 |
| - Accrued assets in respect of lease incentives |
505 | 518 | 710 | 870 |
| Appro/so/ value as at 31 December | 749,375 | 697,415 | 416,626 | 410.161 |
| Investment properties under renovation | 3.100 | |||
| Investment properties in pipeline | 4,880 | 7,193 | ||
| /nvestment properties | 754,255 | 704.608 | 416,626 | 413,26 |
| Other assets | 1,855 | 7,287 | 1,570 | 1,542 |
| Not allocated to segments | ||||
| Total assets | ||||
| Liabilities | 16,976 | 17,559 | 34,897 | 30,485 |
| Not allocated to segments |
1 The financing for the property portfolios in the different countries, except for the financing of the Belgian portfolio, is arranged at holding level. For this reason segmenting this information by country is not relevant.
| France | Belgium | Turkey | Portugal | Total | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 |
| 22,096 | 24,502 | 19,227 | 18,965 | 1,403 | 1,049 | 1,081 | 1,161 | 111,840 | 115,681 |
| 23,886 | (29,702) | 4,458 | 1,381 | 1,708 | 397 | (225) | (948) | 37,930 | (124,103) |
| - | - | - | (880) | - | - | - | - | (725) | (14,731) |
| (1,826) | (3,639) | - | - | 554 | - | - | - | (1,729) | (8,645) |
| 92 | 154 | 181 | 212 | - | - | - | - | 682 | 2,220 |
| 44,248 | (8,685) | 23.866 | 19,678 | 3,665 | 1,446 | 856 | 213 | 147.998 | (29.578) |
| (30,854) | (33,279) |
(6,605) (1.852) (9,511) (7,091) 13.780 (5,215)
99.176 (61.383)
| Total | Portugal | Turkey | Belgium | France | |||||
|---|---|---|---|---|---|---|---|---|---|
| 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 |
| 1,965,256 | 1,834,252 | 13,481 | 12,533 | 20,236 | 30,315 | 294,796 | 298,619 | 409,262 | 386,597 |
| 9,946 | 47,326 | - | - | 9,574 | - | - | - | 372 | - |
| 10,111 | 4,615 | - | - | 126 | 17 | 4,853 | 334 | 1,232 | 613 |
| 24,215 | 5,310 | - | - | - | - | - | - | 5,925 | - |
| (568) | - | - | - | - | - | (568) | - | - | - |
| (50,587) | (7.953) | - | - | - | - | (1,843) | (314) | (492) | (1.847) |
| 1,958,373 | 1,883,550 | 13.481 | 12,533 | 29,936 | 30,332 | 297.238 | 298,639 | 416,299 | 385,363 |
| (124,103) | 37,930 | (948) | (225) | 397 | 1,708 | 1,381 | 4,458 | (29,702) | 23,886 |
| (18) | 381 | - | - | (18) | 381 | - | - | - | - |
| 1.834,252 | 1,921,861 | 12,533 | 12,308 | 30,315 | 32,421 | 298,619 | 303,097 | 386,597 | 409,249 |
| 1.866 | 1,586 | - | - | - | - | 263 | 190 | 215 | 181 |
| 1,836,118 | 1,923,447 | 12,533 | 12,308 | 30,315 | 32,421 | 298,882 | 303,287 | 386,812 | 409,430 |
| 3,100 | _ | _ | - | - | - | - | - | - | - |
| 22,183 | 72,091 | - | - | - | 52,031 | - | - | 14,990 | 15,180 |
| 1.861,401 | 1,995,538 | 12.533 | 12,308 | 30,315 | 84,452 | 298,882 | 303,287 | 401,802 | 424,610 |
| 21,826 | 7,919 | 316 | 416 | 643 | 1,163 | 8.905 | 702 | 3,133 | 2,213 |
| 10,767 | 11,175 | ||||||||
| 1,893,994 | 2.014,632 | ||||||||
| 196,899 | 193,288 | 1,214 | 1,291 | 1,084 | 774 | 128,766 | 123,550 | 17,791 | 15,800 |
| 662,002 | 746.439 | ||||||||
| 858,901 | 939.727 |
| Cross rental | Ground rents | \Iet service | Operating | Net rental | ||||||
|---|---|---|---|---|---|---|---|---|---|---|
| income | paid | charge expenses | expenses | income | ||||||
| 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | 2010 | 2009 | |
| Netherlands | 48,467 | 49,074 | (54) | (52) | (128) | (409) | (5,898) | (6,087) | 42,387 | 42,526 |
| Spain | 29,706 | 31,355 | (437) | (433) | (1,217) | (1.161) | (2,406) | (2,283) | 25,646 | 27,478 |
| France | 24,612 | 26.942 | (63) | (61) | (388) | (122) | (2,065) | (2,257) | 22,096 | 24,502 |
| Belgium | 21,037 | 20,848 | (19) | (19) | (98) | (47) | (1.693) | (1,817) | 19,227 | 18,965 |
| Turkey | 1,686 | 1,213 | - | - | (69) | (38) | (214) | (126) | 1,403 | 1.049 |
| Portugal | 1,130 | 1,130 | - | - | - | - | (49) | 31 | 1,081 | 1.161 |
| 126.638 | 130,562 | (573) | (565) | (1.900) | (1.777) | (12.325) | (12,539) | 111,840 | 115,681 |
| GROUND RENTS PAID | 2010 | 2009 |
|---|---|---|
| Attributable to leased properties | 549 | 501 |
| Attributable to vacant properties | 24 | 64 |
| 573 | 565 | |
| NET SERVICE CHARGE EXPENSES | 2010 | 2009 |
| Attributable to leased properties | 210 | 425 |
| Attributable to vacant properties | 1,690 | 1,352 |
| 1,900 | 1,777 | |
| OPERATING EXPENSES | 2010 | 2009 |
| Attributable to leased properties | 11,782 | 12,174 |
| Attributable to vacant properties | 543 | 365 |
| 12,325 | 12,539 | |
| OPERATING EXPENSES | 2010 | 2009 |
| Maintenance | 2,375 | 2,373 |
| Administrative and commercial management 1 ) |
5,066 | 5,222 |
| Insurance | 443 | 513 |
| Local taxes | 2,183 | 1,730 |
| Letting costs | 474 | 323 |
| Allocation to the provision for doubtful debtors (on balance) | 966 | 1,138 |
| Other operating expenses | 818 | 1,240 |
| 12,325 | 12,539 |
1 4% of gross rental income, consisting of external and general expenses, which are attributed to operating expenses.
| 2010 | 2009 | |||||
|---|---|---|---|---|---|---|
| Positive | Negative | Total | Positive | Negative | Total | |
| Investment properties in operation | 61,239 | (23,309) | 37,930 | 20,714 | (144,817) | (124,103) |
| Investment properties under renovation | - | (725) | (725) | - | (14,731) | (14,731) |
| Investment properties in pipeline | 554 | (2,283) | (1,729) | - | (8,645) | (8,645) |
| 61,793 | (26,317) | 35,476 | 20,714 | (168,193) | (147,479) |
| 2010 | 2009 | |
|---|---|---|
| Sales price | 8,581 | 60,884 |
| Book value at time of disposal | (7,953) | (57,191) |
| 628 | 3,693 | |
| Sales costs | (56) | (741) |
| 572 | 2,952 | |
| Other | no | (732) |
| 682 | 2,220 |
| INTEREST INCOME | 2010 | 2009 |
|---|---|---|
| Bank accounts and short-term deposits | (56) | (14) |
| Other interest receivable | (149) | (201) |
| Capitalised financing costs | (737) | (67) |
| (942) | (282) | |
| INTEREST EXPENSE | 2010 | 2009 |
| Long-term interest-bearing loans | 29,222 | 29,239 |
| Short-term credits and cash loans | 2,129 | 3,348 |
| Other interest payable | 347 | 362 |
| 31,698 | 32,949 | |
| Total interest expense | 30,756 | 32,667 |
| Value movements financial derivatives | (32) | 822 |
| Exchange rate differences | 130 | (210) |
| 30,854 | 33,279 |
| 2010 | 2009 | |
|---|---|---|
| Personnel costs | 7,232 | 7,160 |
| Remuneration of Supervisory Board | 107 | 107 |
| Consultancy and audit costs | 970 | 1,265 |
| Appraisal costs | 918 | 931 |
| Accommodation and office costs | 1,635 | 1,595 |
| Other expenses | 250 | 653 |
| 11.112 | 11,711 | |
| Attributed to operating expenses | (4,507) | (4,620) |
| 6,605 | 7,091 |
During 2010 an average of 109 (2009:106) employees (fulltime equivalents) were employed by VastNed Retail and VastNed Offices/Industrial N.V. jointly, of whom 47 in the Netherlands and 62 abroad.
Personnel costs of the employees working in the Netherlands are attributed to VastNed Retail based on the actual work done. Individually, VastNed Retail has no employees.
In the year under review, VastNed Retail accounted for € 7.0 million in wages and salaries (2009: € 6.9 million), €1.1 million in social security charges (2009: € 1.0 million) and € 0.6 million in pension premiums (2009: € 0.6 million). After the allocation to VastNed Offices/Industrial N.V., the following amounts remain: € 5.0 million in wages and salaries (2009: € 5.0 million), € 0.9 million in social security charges (2009: € 0.9 million) and € 0.3 million in pension premiums (2009: € 0.3 million).
The consultancy and audit costs include the costs shown below, which were charged by Deloitte Accountants for work carried out for VastNed Retail and its subsidiaries.
| 2010 | 2009 | |
|---|---|---|
| Audit of the financial statements | 298 | 292 |
| Other audit assignments | 4 | 11 |
| Other services | - | 10 |
| 302 | 313 |
The audit costs include a sum of € 0.1 million (2009: € 0.1 million) for Deloitte Accountants B.V.
Other expenses include publicity costs and IT costs.
| CURRENT INCOME TAX EXPENSE | 2010 | 2009 |
|---|---|---|
| Current financial year | 420 | 1,414 |
| Adjustment to previous financial years | (239) | (208) |
| 181 | 1,206 | |
| MOVEMENTS IN DEFERRED TAX ASSETS AND LIABILITIES | 2010 | 2009 |
| In respect of: | ||
| Value movements in investment properties | 1.212 | (15,565) |
| Change in tax rates | - | 225 |
| Tax effect of expiry of offsettable losses | 459 | 354 |
| 1.671 | (14.986) | |
| Total income tax | 1.852 | (13.780) |
| RECONCILIATION OF EFFECTIVE TAX RATE | 2010 | 2009 | ||
|---|---|---|---|---|
| Investment result before taxes | 110.539 | (69,948) | ||
| Income tax at Dutch tax rate | 0.0% | - | 0.0% | - |
| Effect of tax rates of subsidiaries operating in other jurisdictions | (1.5%) | 1,632 | 19.9% | (13,926) |
| Tax effect of expiry of offsettable losses | (0.4%) | 459 | (0.5%) | 354 |
| Adjustment to previous financial years | 0.2% | (239) | 0.3% | (208) |
| (1.7%) | 1.852 | 19.7% | (13,780) |
VastNed Retail qualifies as a fiscal investment institution as meant in Section 28 of the 1969 Netherlands Corporate Income Tax Act. This means that the company is exempted from the obligation to pay corporate income tax on profits made in the Netherlands provided that it meets specific conditions. These conditions mainly concern the investment requirement, the fiscal financing ratios, the composition of the shareholders' base and the timely cash dividend distribution ofthe fiscal result.
Most of the properties in Belgium are held by the Bevak Intervest Retail NV. A Bevak (investment company with fixed capital) essentially has a tax-exempt status, so that no tax is payable on its profits in Belgium. The requirements for the Bevak are comparable to those for the Dutch fiscal investment institution.
Virtually all of VastNed Retail's property portfolio in France is subject to the SIIC regime. Under this regime, VastNed Retail is not liable for taxation on its French net rental income nor on the capital gains realised in France. The requirements of the SIIC regime are comparable to those for the Dutch fiscal investment institution. Only a very small portion (less than 1 %) of the French property investments is held by companies that are subject to the usual tax rules. The nominal tax rate is 34.43%. Depreciation, interest and other expenses are deducted from the taxable net income.
The properties in Spain, Turkey and Portugal are held by companies subject to the usual tax rules. In Spain the nominal tax rate is 30.0%, in Turkey 20.0% and in Portugal 26.5%. Depreciation, interest and other expenses are deducted from the taxable net rental income realised in these countries. In Spain, if capital gains realised are reinvested in Spain within three years, then income tax paid is refunded at 12.0% of the capital gains realised. The effective tax rate then amounts to 18.0%.
The calculations of deferred tax assets and liabilities are based on the nominal tax rates as effective on 1 January 2011.
| 2010 | 2009 | |||
|---|---|---|---|---|
| Basic | Diluted | Basic | Diluted | |
| /nvestment resu/t | 99.176 | 99.176 | 61.383 | 61,383 |
| AVERAGE NUMBER OF ORDINARY SHARES IN ISSUE | 2010 | 2009 | ||
| Basic | Diluted | Basic | Diluted | |
| Balance as at 1 January | 18,265,213 | 18,265,213 | 16,417,526 | 16,417,526 |
| Effect of share issue | 486,769 | 486,769 | ||
| Effect of stock dividend | 144.306 | 144,306 | 124,125 | 124,125 |
| Average number of ordinary shares in issue | 18.409.519 | 18.409,519 | 17.028.420 | 17,028.420 |
| PER SHARE (x€l ) | 2010 | 2009 | ||
| Basic | Diluted | Basic | Diluted | |
| /nvestment result | 5.39 | 5.39 | (3.61) | (3.61) |
VastNed Retail's dividend policy is aimed at distributing the direct investment1 ) result to shareholders in full. The profit for tax as a minimum must be paid out in cash in order to comply with the fiscal conditions for fiscal investment institutions.
On 17 May 2010, the final dividend for the 2009 financial year was made payable. It consisted of 5% in cash on the priority shares and an optional dividend on the ordinary shares of € 2.78 in cash or € 1.10 in cash and 4.00% in shares charged to the share premium reserve. This dividend payment totalled €41.1 million.
On 30 August 2010, the interim dividend for the 2010 financial year was made payable. The interim dividend amounted to € 1.10 per share in cash (total payout: €20.3 million).
The Board of Management proposes the following final dividend for the 2010 financial year:
If the General Meeting of Shareholders approves the dividend proposal, the dividend will be made payable to shareholders on 16 May 2011. The dividend to be distributed has not been entered in the balance sheet as a liability.
1 The direct investment result consists of net rental income less net financing costs (excluding value movements financial derivatives), general expenses, current income tax expense and the part of this income and expenditure attributable to non-controlling interests.
| in operation | Under renovation | Total | In operation Unde | renovation | Total | |
|---|---|---|---|---|---|---|
| Balance as at 1 January | 1,834,252 | 3,100 | 1,837,352 | 1.965,256 | 26,043 | 1,991,299 |
| Acquisitions | 47,326 | - | 47,326 | 9,946 | - | 9,946 |
| Capital expenditure | 4,615 | 725 | 5,340 | 10,111 | 1,414 | 11,525 |
| Taken into operation | 5,310 | (3,100) | 2,210 | 24,215 | (3,590) | 20,625 |
| Transferred to investment | ||||||
| properties under renovation | - | - | - | (568) | 568 | - |
| Disposals | (7.953) | - | (7,953) | (50,587) | (6,604) | (57,191) |
| 1,883,550 | 725 | 1,884,275 | 1,958,373 | 17,831 | 1,976,204 | |
| Value movements | 37,930 | (725) | 37,205 | (124,103) | (14,731) | (138,834) |
| Exchange rate differences | 381 | - | 381 | (18) | - | (18) |
| Balance as at 31 December | 1,921.861 | 1,921,861 | 1,834,252 | 3,100 | 1,837,352 | |
| Accrued assets in respect of lease incentives | 1,586 | 1,586 | 1,866 | 1,866 | ||
| Appraisal value as at 31 December | 1,923,447 | 1,923,447 | 1,836.118 | 3.100 | 1.839,218 |
86% of the investment properties in operation and under renovation were appraised by independent certified appraisers as per 31 December 2010. The remaining properties were appraised earlier in the year under review by independent certified appraisers. The fair value of these investment properties on 31 December 2010 was determined internally.
Properties to a value of € 437.1 million (2009: € 437.1 million) serve as security for loans contracted (also see '19 Long-term interest-bearing loans').
For further details on the investment properties in operation and under renovation, please refer to the '2010 property portfolio' overview included elsewhere in this annual report.
| 2010 | 2009 |
|---|---|
| 22,183 | 21,514 |
| 53,757 | 29,059 |
| (2.210) | (20,625) |
| 73.730 | 29,948 |
| (1.639) | (7,765) |
| 72.091 | 22,183 |
Most of the investment properties in pipeline were appraised by independent certified appraisers as per 31 December 2010. The value of one investment property in pipeline on 31 December 2010 was determined internally.
For further details on the investment properties in pipeline, please refer to the '2010 Property Portfolio' overview included elsewhere in this annual report.
Please refer to '24 Rights and obligations not recorded in the balance sheet' for further details on the committed investment properties in pipeline.
1 The item 'Value movements in investment properties in pipeline' in the consolidated profit and loss account includes a negative value movement of € 0.1 million (2009: 2.5 million negative). It refers to the effect of the valuation of the commitment with respect to the future acquisition of the 'Hoogambacht' shopping centre in Hendrik-ldo-Ambacht, the Netherlands. The resulting provision is included in 'Investment creditors' under 'Other liabilities and accruals'.
| 2009 2010 |
||||
|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | |
| Investment properties | - | 31,950 | - | 31.211 |
| Financial derivatives | - | (3,511) | - | (3,616) |
| Offsettable losses | 478 | (3.291) | 904 | (3,548) |
| Other | - | 181 | - | (58) |
| 478 | 25.329 | 904 | 23,989 |
Deferred tax assets and liabilities are offset if there is a right enforceable by law to set off the tax assets and liabilities against each other and if these deferred tax assets and liabilities are incurred under the same tax regime.
The movements in the deferred tax assets and liabilities were as follows:
| 2010 | ||||
|---|---|---|---|---|
| Assets | Liabilities | Assets | Liabilities | |
| Balance as at 1 January | 904 | 23,989 | 1,218 | 40,460 |
| Net credit/charge to the profit and loss account | - | 409 | 40 | (14,755) |
| Net credit/charge to equity | - | 229 | - | (2,019) |
| Transferred from long-term tax liabilities | - | - | - | 299 |
| Offsettable losses used | - | 678 | - | - |
| Tax effect of expiry of offsettable losses | (426) | - | (354) | - |
| Exchange rate differences | - | 24 | - | 4 |
| Balance as at 31 December | 478 | 25.329 | 904 | 23,989 |
The deferred tax assets and liabilities as per 31 December 2010 concern the Netherlands, Spain, France, Belgiun Turkey and Portugal.
The deferred tax assets concern offsettable losses that must be set off before 2019. The deferred tax liabilities are largely related to the difference between the market value and the fiscal book value of the investment properties.
As at the balance sheet date, unused tax losses totalled € 9.4 million. In view of the expectation that, given the present structure, it will not be possible to set off these unused tax losses against taxable profits in the near future, no deferred tax asset has been recognised.
| 2010 | 2009 | |
|---|---|---|
| Debtors | 6,504 | 6,192 |
| Provision for doubtful debtors | (4,198) | (3,876) |
| 2,306 | 2,316 | |
| Taxes | 1,679 | 4,878 |
| Receivable from disposals | - | 8,817 |
| Interest | 30 | 46 |
| Service charges | 565 | 732 |
| Prepayments | 1,421 | 1,517 |
| Other receivables | 2,763 | 4,168 |
| 8,764 | 22,474 |
The receivables include items with a term in excess of one year with a total value of € 0.3 million (2009: €1.0 million).
Cash and cash equivalents concern deposits, call money and bank account credit balances with a term of less than three months. The cash and cash equivalents are freely available to the Company.
VastNed Retail's principal financial assets consist of cash and cash equivalents, debtors and other receivables.
The credit risk on cash and cash equivalents is very small, since the cash and cash equivalents are held at reputable banks.
The credit risk is primarily attributable to debtors. This credit risk is limited by prior careful screening of potential tenants. Also, security is required from tenants in the form of guarantee deposits or bank guarantees.
The aging analysis ofthe debtors as at 31 December was as follows:
| 2010 | ||||
|---|---|---|---|---|
| Gross amounts |
Provision | Cross amounts |
Provision | |
| Overdue by less than 30 days | 992 | 114 | 1,111 | 103 |
| Overdue by between 31 and 90 days | 737 | 184 | 798 | 206 |
| Overdue by between 91 days and one year | 2,131 | 1.569 | 1,989 | 1,485 |
| Overdue by more than one year | 2,644 | 2,331 | 2,294 | 2,082 |
| 6.504 | 4.198 | 6.192 | 3,876 |
Movements in the provision for doubtful debtors were as follows:
| 2010 | 2009 | |
|---|---|---|
| Balance as at 1 January | 3,876 | 2,822 |
| Allocation to the provision | 1,838 | 2,042 |
| Write-off for bad debts | (645) | (84) |
| Release | (872) | (904) |
| Exchange rate differences | 1 | - |
| Balance as at 31 December | 4.198 | 3,876 |
Receivables are recognised after deduction of a provision for bad debts.
There is no credit risk concentration since the tenant base consists of a large number of different parties.
The authorized share capital is € 375.0 million and is divided into 74,999,990 ordinary shares of € 5 par value and 10 priority shares of € 5 par value.
The equity VastNed Retail shareholders was € 52.75 per share as at 31 December 2010 (31 December 2009: €51.42 per share).
| NUMBER OF SHARES IN ISSUE | 2009 | 2008 | ||
|---|---|---|---|---|
| Ordinary | Priority | Ordinary | Priority | |
| shares | shares | shares | shares | |
| Balance as at 1 January | 18,265.213 | 10 | 16,417,526 | 10 |
| Share issue | - | - | 1,660,473 | - |
| Stock dividend | 230.007 | - | 187,214 | - |
| Balance as at 31 December | 18.495.220 | 10 | 18.265,213 | 10 |
The holders of ordinary shares are entitled to receive the dividend declared by the Company and are entitled to cast one vote per share at the shareholders' meetings. In the event of a share buyback by VastNed Retail where the shares are not cancelled, these rights are suspended until such time as the shares are reissued.
The company's articles of association confer special controlling rights on the priority shares. The priority shares have been placed at par value with the Stichting Prioriteit VastNed Retail. The objective of this foundation is to acquire ownership ofthe priority shares in the Company and to exercise all rights vested in such shares, including the voting right, the receipt of dividend and other distributions and all that which is related thereto in the broadest sense. The Board of Management of the Stichting Prioriteit VastNed Retail consists of the members of the Board of Management and of the Supervisory Board of VastNed Retail. They are the A directors and B directors respectively of the Stichting Prioriteit VastNed Retail. A directors are not entitled by the articles of association to cast more votes than B directors.
The VastNed Group has pension plans in place for its employees in the Netherlands that qualify as defined benefit pension plans. The pension plans for the employees in other countries where the VastNed Group has branches can be qualified as defined contribution pension plans.
The external actuary has made the following assumptions for the actuarial calculations involving the defined benefit pension plans:
| 31-12-2010 | 31-12-2009 | ||||
|---|---|---|---|---|---|
| Discount rate | 5.25% | 6.00% | |||
| Expected return on plan assets | 5.25% | 6.00% | |||
| Expected rate of salary increases (dependent on age | |||||
| and including inflation correction) | 2.00%-6.00% | 2.00%-6.00% | |||
| Future pension increases | 0.325%-2.00% | 0.325%-2.00% | |||
| 2010 | 2009 | 2008 | 2007 | 2006 | |
| Present value of defined benefit pension obligations | 13,028 | 10,178 | 9.977 | 10,337 | 10,845 |
| Fair value of plan assets | (11,073) | (8,753) | (8,083) | (8,874) | (9.546) |
| 1.955 | 1,425 | 1,894 | 1,463 | 1,299 | |
| Unrecognised actuarial gains and losses | (1,080) | (329) | (779) | 330 | 180 |
| Obligations in respect of pension plans | 875 | 1,096 | 1,115 | 1,793 | 1,479 |
| Long-term employee benefits | 148 | 140 | 121 | 122 | 96 |
| 1,023 | 1,236 | 1,236 | 1,915 | 1,575 |
Movements in the provisions were as follows:
| 2010 | 2009 | |
|---|---|---|
| Balance as at 1 January | 1,236 | 1,236 |
| Contribution charged to the profit and loss account | 524 | 553 |
| Contributions paid (on balance) | (745) | (572) |
| Movement in provision of long-term employee benefits | 8 | 19 |
| Balance as at 31 December | 1.023 | 1,236 |
The amounts recognised under general expenses in the profit and loss account in respect of the defined benefit pension plans are as follows:
| 2010 | 2009 | |
|---|---|---|
| Employer service costs | 470 | 455 |
| Interest | 599 | 561 |
| Expected return on plan assets | (529) | (467) |
| Actuarial losses recognised in the year | (16) | 4 |
| 524 | 553 |
The VastNed Group expects to contribute a total of € 0.7 million to its defined benefit pension plans in 2011.
An amount of less than € 0.1 million was recognised in the profit and loss account in 2010 in respect ofthe defined contribution plans (2009: less than € 0.1 million).
| 2010 | 2009 | |||||||
|---|---|---|---|---|---|---|---|---|
| Remaining term | Remaining term | |||||||
| Average | Average | |||||||
| More than | interest rate | More than | interest rate | |||||
| 1-5 years | 5 years | Total | at year-end | 1-5 years | 5 years | Total | at year-end | |
| Secured loans: | ||||||||
| fixed interest1 ) |
99.052 | 24,469 | 123,521 | 4.43 | 166,742 | 19,331 | 186,073 | 4.30 |
| floating interest | - | - | - | - | - | - | - | |
| 99.052 | 24,469 | 123,521 | 4.43 | 166,742 | 19.331 | 186,073 | 4.30 | |
| Unsecured loans: | ||||||||
| fixed interestl) | 381.610 | 37,500 | 419,110 | 4.89 | 348,729 | 42,500 | 391,229 | 4.69 |
| floating interest | 31,928 | 37,500 | 69,428 | 2.83 | 20,314 | - | 20,314 | 2.32 |
| 413.538 | 75.000 | 488,538 | 4.60 | 369.043 | 42.500 | 411.543 | 4.57 | |
| Total: | ||||||||
| fixed interestl) | 480,662 | 61,969 | 542,631 | 4.79 | 515,471 | 61,831 | 577,302 | 4.56 |
| floating interest | 31.928 | 37,500 | 69,428 | 2.83 | 20,314 | - | 20,314 | 2.32 |
| 512.590 | 99.469 | 612.059 | 4.56 | 535.785 | 61,831 | 597,616 | 4.49 |
The partial right of mortgage on property with a value of € 437.1 million (2009: € 437.1 million) has been granted as security for the secured loans.
A positive/negative mortgage covenant was issued for the unsecured loans. In addition, a number of lenders have set conditions regarding the solvency and interest coverage, as well as changes in the control of the Company and/or its subsidiaries. VastNed Retail met these conditions on 31 December 2010. Please refer to '23 Financial instruments' for more details on the conditions set by the lenders.
The part of the long-term interest-bearing loans due within one year of € 92.0 million (2009: € 42.1 million) is recognised under short-term liabilities.
As at 31 December 2010. the total credit facility ofthe long-term interest-bearing loans, including the part due within one year, was € 725.3 million (2009: € 652.4 million).
The unused credit facility ofthe long-term interest-bearing loans as at 31 December 2010 was €21.3 million (2009:€ 12.7 million).
The average term of the long-term interest-bearing loans was 3.7 years (2009: 3.6 years).
The market value of the long-term interest-bearing loans is calculated as the present value of the cash flows based on the swap yield curve and applicable credit spreads at year-end 2010.
1 Including the part that was fixed by means of interest rate derivatives.
As at 31 December, the market value of the long-term interest-bearing loans, including the part due within one year, was as follows:
| 2009 | 2010 | ||
|---|---|---|---|
| Market value Carrying amount | Market value Carrying amount | ||
| 639.754 | 640.822 | 704.072 | 693.283 |
The average interest rate in 2010 was 4.51 % (2009:4.47%).
| 2010 | 2009 | |
|---|---|---|
| Balance as at 1 January | 5,434 | 8,435 |
| Short-term portion as at 1 January | 2,978 | 2,934 |
| 8,412 | 11,369 | |
| Allocation | - | 165 |
| Payments | (2,978) | (2,823) |
| Transferred to deferred tax liabilities | - | (299) |
| 5,434 | 8,412 | |
| Short-term portion as at 31 December | (2.757) | (2,978) |
| Balance as at 31 December | 2.677 | 5.434 |
This concerns the long-term portion of the exit-tax in France, which is payable in connection with obtaining the SIIC status.
| 2010 | 2009 | |
|---|---|---|
| Credit facility | 220,544 | 235,545 |
| Ofwhich undrawn | (99,000) | (133,071) |
| Drawn os at 3 J December | 121.544 | 102.474 |
The item 'Payable to banks' concerns short-term credits and cash loans. By way of security for the credit facilities, it has been agreed with the lenders that investment property will only be mortgaged on behalf of third parties subject to the lenders' approval.
The amounts payable to banks are payable at the lenders' request within one year.
The average interest rate in 2010 was 1.92% (2009: 2.37%).
The market value ofthe amounts payable to banks is deemed to be equal to the balance sheet value.
Where the Company operates a notional cash pooling arrangement, the cash and amounts payable to banks are set off against each other.
| 2010 | 2009 | |
|---|---|---|
| Accounts payable | 2,321 | 3,035 |
| Investment creditors | 7,077 | 7,059 |
| Dividend | 425 | 405 |
| Taxes | 1,865 | 943 |
| Prepaid rent | 10,279 | 10.485 |
| Interest | 6,010 | 6,955 |
| Operating expenses | 2,628 | 2,714 |
| Payable in respect of acquisitions | - | 75 |
| Other liabilities and accruals | 4,201 | 5,183 |
| 34,806 | 36,854 |
For the realisation of its objectives and the exercise of its day-to-day activities, VastNed Retail has defined a number of financial preconditions aimed at mitigating the financing and refinancing risk, liquidity risk, interest rate risk and currency risk. These preconditions have been laid down inter alia in the financing and interest rate policy memorandum, which is updated annually, and in the treasury regulations. Quarterly reports on these risks are submitted to the audit committee.
A summary is given below of the main preconditions aimed at mitigating these risks.
Investing in property is a capital-intensive activity. The property portfolio is financed partly with equity and partly with loan capital. If loan capital accounts for a large proportion of the financing, there is a risk when returns are less than expected or the property decreases in value that the interest and repayment obligations on the loans and other payment obligations can no longer be met. This would make loan capital or refinancing more difficult to arrange, with a possibility that more unfavourable conditions have to be agreed to. To limit this risk, VastNed Retail's guiding principle is to limit loan capital financing to approximately 40-45% of the market value of the investment properties. Inline with these objectives, solvency ratios and interest coverage ratios have been agreed in most of the credit agreements with banks.
In addition. VastNed Retail aims to secure access to the capital market through transparent information provision, regular contacts with financiers and current and potential shareholders, and by increasing the liquidity of VastNed Retail shares. Finally, the aim with regard to long-term financing is to have a balanced spread of refinancing dates and a weighted average term of at least 5.0 years.
The solvency ratio is calculated by taking equity plus the provision for deferred tax liabilities and dividing it by the balance sheet total. At year-end 2010 the solvency ratio was 54.6%. which is in compliance with the solvency ratios agreed with the banks.
The interest coverage ratio is calculated by taking net rental income less general expenses and dividing it by net financing costs. The interest coverage ratio for 2010 was 3.4, which was well above the ratios agreed with the banks.
At year-end 2010, the weighted average term of the long-term interest-bearing loans was 3.7 years.
VastNed Retail must generate sufficient cash flows in order to be able to meet its day-to-day payment obligations. On the one hand, this is realised by taking measures aimed at high occupancy rates and by preventing financial loss due to tenants becoming bankrupt. On the other hand, the aim is to arrange sufficient credit facilities to be able to absorb fluctuations in liquidity needs. Liquidity management is centralised in the Netherlands, where most of the foreign subsidiaries' bank accounts have been placed in cash pool schemes.
At year-end 2010, VastNed Retail had € 220.5 million in short-term credit facilities available, ofwhich it had drawn down €121.5 million.
The unused creditfacility of the long-term interest-bearing loans as at 31 December 2010 was €21.3 million.
Balance sheet value Long-term interest-bearing loans2 ) 612,059 Long-term tax liabilities 2,677 Guarantee deposits 8,564 Payable to banks3 ) 121,544 Redemption of long-term interest-bearing loans 92,013 Income tax 3,211 Other liabilities and accruals 34,806 Contractual cash flows 745.982 2,677 8,564 121,658 93,228 3,211 34,806 Less than 1 year 30,490 - - 121,658 93,228 3,211 34,806 1-5 years 595,110 2.677 8,564 - - - - More than 5 years 120,382 - - - - - - 874,874 1,010.126 283.393 606.351 120.382
The table below shows the financial liabilities, including the estimated interest payments1 ).
The interest-rate risk policy aims to mitigate the interest rate risks arising from the financing of the property portfolio while optimising net interest expenses. This policy translates into a loan portfolio composition in which in principle at least two thirds of the loans have fixed interest rates. There may be temporary deviations from this principle depending on developments in interest rates. Furthermore, the aim is to have a balanced spread of interest-rate review dates within the long-term loan capital portfolio and a typical minimum interest-rate term of three years. At least once per quarter, a report on the interest-rate and refinancing risks is submitted to the audit committee and the Supervisory Board.
VastNed Retail mitigates its interest-rate risk by making use of financial interest-rate derivatives (interest-rate swaps), swapping the floating interest rate it pays on part of its loans for a fixed interest rate.
The interest-rate swaps are designated as cash flow hedges, whereby it has been established that all hedges, except for the interest rate swaps detailed below, are materially effective. Accordingly, cash flow hedge accounting has been applied for these swaps, which means that value movements in these swaps are recognised directly in equity.
Regarding the materially effective cash flow hedges, the interest-rate risk on loans with a nominal value of €531.9 million at year-end 2010 was hedged by entering into interest-rate swaps. To this end, contracts have been concluded with fixed interest rates ranging from 2.69% to 5.10% (excluding margins) and expiry dates ranging from 2011 through to 2018. In addition to this, forward interest-rate swaps were concluded for loans with a nominal value of € 112.5 million with fixed interest rates ranging from 2.62% to 3.39% (excluding margins) and expiry dates ranging from 2016 through to 2018.
The cash flow hedges that are not effective are interest-rate swaps where the interest on an amount totalling € 60.0 million has been fixed, with fixed interest rates varying from 3.02% to 4.43% and expiry dates varying from 2013 to 2014. These hedges were for the most part ineffective during certain periods in 2010 and consequently the value movements in these interest rate swaps are (partially) directly recognised in the profit and loss account.
In October 2010, VastNed Retail placed a fixed rate bond loan in the amount of € 75.0 million with an institutional investor. In order to continue to comply with the financing policy laid down in the treasury regulations, an interest rate swap was concluded at the end of 2010 for loans with a nominal value of € 20.0 million, swapping the fixed interest rate for a variable interest rate. Because hedge accounting is not applied to this swap, the value movements in this interest rate swap are recognised directly in the profit and loss account. Subsequent to this, an interest rate swap was concluded in January 2011 for loans with a nominal value of € 17.5 million, swapping the fixed interest rate for a variable interest rate.
With due consideration to the abovementioned interest rate swaps, at year-end 2010, ofthe total long-term interest-bearing loans in the amount of € 612.1 million, € 542.6 million was at a fixed interest rate (see '23 B Summary of expiry dates and fixed interest rates on long-term interest-bearing loans').
Most of the (forward) interest-rate swaps are settled on a quarterly basis. The floating interest rate is based on the 3 month Euribor rate. The differences between the floating rate and the agreed fixed interest rate are settled at the same time.
The average term of the long-term interest-bearing loans calculated in fixed interest periods was 4.7 years (2009: 4.6 years).
All transactions involving financial derivatives are entered into with reputable banks as counterparties. For this reason, it is thought unlikely that the counterparties will be unable to fulfil their obligations.
As at 31 December 2010 the impact on the investment result of a hypothetical 100 basis points increase in interest rates - all other factors remaining equal - would be a fall of € 1.8 million. Should interest rates decrease by 100 basis points as at this date, the impact on the investment result would be an increase of € 1.8 million. The calculations take account of the financial derivatives entered into.
In principle, currency risks are limited as a result of the strategic decision to invest primarily in the euro zone. VastNed Retail has investment properties in Turkey. Turkey is not in the Eurozone, so that there is a currency risk here. The risk is mitigated on the one hand by limiting the size of the Turkish property portfolio to a maximum of 10% of the total property portfolio and on the other hand by stipulating a rent in euros or US dollars in the lease contracts wherever possible and by financing the investment wholly or partly in the same currency as the investment itself, which significantly lowers the exposure.
| 2010 | 2009 | |||||
|---|---|---|---|---|---|---|
| Contract | Interest | Average | Contract | Interest | Average | |
| renewal | review | interest rate1 ) |
renewal | review | interest rate') | |
| 2010 | - | - | - | - | 9,765 | 4.78 |
| 2011 | - | - | - | 98,350 | 21,500 | 4.54 |
| 2012 | 135,972 | 28,595 | 4.91 | 136,331 | 88,068 | 4.43 |
| 2013 | 122,000 | 78.061 | 4.68 | 122,000 | 104,340 | 4.80 |
| 2014 | 163,551 | 135,000 | 4.90 | 163,458 | 134,845 | 4.73 |
| 2015 | 82,500 | 117,500 | 4.62 | 77,477 | 102,412 | 4.40 |
| 2016 onwards | 108.036 | 183,475 | 4.45 | - | 116.372 | 4.38 |
| Total long-term interest-bearing | ||||||
| loans with a fixed interest rate | 612.059 | 542,631 | 4.79 | 597,616 | 577,302 | 4.56 |
| Long-term interest-bearing loans | ||||||
| with a floating interest rate | - | 69,428 | 2.83 | - | 20,314 | 2.32 |
| Total long-term interest-bearing loans | 612.059 | 612.059 | 4.56 | 597,616 | 597,616 | 4.49 |
1 Including interest rate swaps and including credit spreads in effect at year-end 2010.
| 2010 | ||||
|---|---|---|---|---|
| Asset | Liability | Asset | Liability | |
| Interest-rate swaps | 158 | 37,406 | 37,066 | |
| Forward interest rate swaps | 820 | 1,095 | ||
| 978 | 38.501 | 37,066 |
Market value of interest-rate derivatives, compared with the nominal value of the loans for which the interest rate risk has been hedged.
| 2010 | 2009 | |||
|---|---|---|---|---|
| Market value of | Market value of | |||
| interest-rate | Nominal value | interest-rate | Nominal value | |
| derivatives | of loans | derivatives | of loans | |
| Interest-rate swaps < 1 year | (1,211) | 52.500 | (208) | 25,000 |
| Interest-rate swaps 1-2 years | (4.369) | 88,375 | (2,657) | 52,500 |
| Interest-rate swaps 2-5 years | (25.184) | 336.870 | (21,962) | 328,391 |
| Interest-rate swaps > 5 years | (6,485) | 94,202 | (12,239) | 202,000 |
| (37.249) | 571.947 | (37,066) | 607.891 | |
| Forward interest rate swaps > 5 years | (274) | 112.500 | - | - |
| (37.523) | 684.447 | (37,066) | 607,891 |
For the purposes of the valuation method the interest-rate derivatives are classed under'level 2', which means the valuation is based on calculations by financial institutions.
There is a long-term partnership agreement between VastNed Retail. VastNed Offices/Industrial N.V. and VastNed Management B.V., as well as a long-term agreement for the allocation of costs, in which mutual rights and obligations are laid down. These agreements at the earliest terminate on 31 December 2015 with a 2-year term of notice prior to this date. In case of notice on the part of VastNed Retail or VastNed Offices/Industrial N.V. the party terminating the agreement will owe an amount equal to tw o times the applicable share of the costs incurred related to the common account during the second year of the period of notice.
A further agreement contains specific change-of-control clauses, including the stipulation that if a public offer for VastNed Offices/Industrial N.V. is honoured, VastNed Retail will be compensated for the consequences of the early termination of these contracts, and vice versa. At the end of 2007, certain points in this agreement were clarified by VastNed Retail, VastNed Offices/Industrial N.V. and VastNed Management B.V. As part of this, the compensation to be paid by VastNed Offices/ Industrial N.V. or VastNed Retail was estimated at between € 10 million and € 25 million.
In 2006 a VAT inspection was carried out at the Belgian subsidiary Intervest Retail NV; it concerned the deduction of VAT on the construction costs incurred in 2003 for the property Factory Shopping Messancy. As a result of this investigation, in 2007 the Belgian tax authorities imposed a retrospective assessment of € 2.1 million in total. The assessment has been paid in full. However, the disposal of Factory Shopping Messancy at the end of January 2008 led to the amount of a possible adjustment, based on the inspection of the books, being reduced to € 0.8 million. Intervest Retail NV is challenging the assessment. As the court in first instance ruled against Intervest Retail NV in 2009, a provision of € 0.8 million has been entered in the balance sheet as a precaution. Intervest Retail NV has appealed against the ruling.
In 2007 a turnkey agreement was concluded for the acquisition of the 'Hoogambacht' shopping centre in Hendrik-ldo-Ambacht, the Netherlands, an investment totalling approximately € 24.2 million. The market value of this property at 31 December 2010 was internally appraised at €21.0 million. The reduction in value is € 3.2 million in total: € 0.4 million was recognised under 'Value movements in investment properties in pipeline' in 2010 and € 2.8 million in 2008 and 2009. Partly as a result of discussions with the selling project developer and the consequent lawsuits, the project has not yet been delivered.
VastNed Retail has an outstanding debt to the seller for the purchase price of two unlet retail units on Wisselplein in Lelystad, the Netherlands. The final purchase price depends on the units being taken on by tenants and the rent agreed. A bank guarantee of € 2.3 million has been provided to the seller for the purchase sum owing. If the units are not let within two years, a more limited purchase sum will be paid.
The cinema and the restaurant in the extension to the 'Het Rond' shopping centre in Houten, the Netherlands was delivered in April 2010. The total investment required for this ultimately amounted to € 2.8 million. A lease for the cinema was signed with a cinema company; a tenant for the restaurant is still being sought. As at 31 December 2010 the market value was determined at € 2.4 million by the external appraiser. The reduction in value was already recognised in 2008 and 2009.
VastNed Retail leases its property investments in the form of non-cancellable operating leases.
The future minimum income from non-cancellable operating leases is as follows:
| 2010 | 2009 | |
|---|---|---|
| Within one year | 121,957 | 115,920 |
| One to five years | 223.420 | 217,105 |
| More than five years | 35,377 | 37,445 |
| 380.754 | 370,470 |
In the Netherlands, virtually all leases are concluded for a period of five years, the tenant having one or more options to extend the lease by five years. Annual rent increases are based on the cost-of-living index. In Spain, normally virtually all leases are concluded fora minimum period of five years. However, in the current uncertain economic climate leases are sometimes being concluded for a shorter period. Annual rent increases are based on the cost-of-living index.
In France, leases are normally concluded for a period of nine or twelve years, the tenant having the option of terminating or renewing the lease every three years. Annual rent increases are based on the rise in the construction cost index, or on a mix of the construction cost index, the cost-of-living index and retail prices. In Belgium, leases are normally concluded for a period of nine years, with termination options after three and six years. Annual rent increases are based on the cost-of-living index.
In Turkey, leases are generally concluded for a period of five years. Various methods are used for the annual indexation of leases. Indexation of the leases concluded in Turkish lira is based on the cost-of-living index. The indexation of leases denominated in US dollars and euros is based on specific agreements.
In Portugal there are two kinds of lease legislation. Under the old legislation, leases are concluded for an indefinite period and may only be terminated by the tenant. The new legislation is comparable to that in Spain.
At the end of February 2011, the Supervisory Boards of VastNed Retail and VastNed Offices/Industrial N.V. have resolved in consultation with the Board of Management to end the collaboration at 1 January 2012, subject to approval from the General Meetings of Shareholders.
After termination, VastNed Retail will have an independent Board of Management and management organisation. The costs of the termination, budgeted at € 2.7 million for VastNed Retail, will be charged to the 2011 financial year.
An agreement was signed in February 2011 concerning the acquisitions of 33 retail properties in the Walburg shopping centre in Zwijndrecht, the Netherlands. The legal transfer has taken place on 2 March 2011 and the retail properties are contributing to the net rental income as of that date. The acquisition price, including acquisition costs, is approximately € 40.5 million.
The following are designated related parties: controlling shareholders, subsidiaries. Supervisory Board members and members of the Board of Management.
To the company's best knowledge, no property transactions were effected during the year under review involving persons or institutions that might be regarded as related parties.
As at year-end 2010, the AFM had received the following reports of shareholders with an interest in the Company exceeding five per cent:
| Nomura Asset Management Co. Ltd. | 5.93% |
|---|---|
| Commonwealth Bank of Australia | 5.79% |
| Stichting Pensioenfonds ABP1 ) |
5.06% |
Please refer to '28 Subsidiaries' and the chapter 'Management and Corporate Governance' included elsewhere in this annual report for an overview of the major subsidiaries.
Transactions as well as internal balances and income and expenditure between the Company and its subsidiaries are eliminated in the consolidation and are not commented upon.
The subsidiary VastNed Management B.V. has a cost allocation agreement with VastNed Retail and VastNed Offices/Industrial N.V. Costs relating directly to the Company or the investment properties of the Company or its subsidiaries are recognised directly there. Other costs that cannot be allocated directly are borne by VastNed Management B.V. and charged on to VastNed Retail and VastNed Offices/Industrial N.V. in line with the actual work done without any mark-up for profit.
During the 2010 financial year none of the members of the Supervisory Board and the Board of Management of VastNed Retail had a personal interest in the investments ofthe Company.
1 Stichting Pensioenfonds ABP reduced its interest to less than 5% effective 24 January 2011.
| Remuneration | Shares held at year-end 2010 |
||
|---|---|---|---|
| 2010 | |||
| W.J. Kolff | 30 | - | |
| N.j. Westdijk | 27 | - | |
| J.B.J.M. Hunfeld | 25 | - | |
| P.M. Verboom | 25 | - | |
| 107 |
| Salaries | Bonus for | ||||
|---|---|---|---|---|---|
| (including social | 2009 paid | Pension | Shares held | ||
| security charges) | in 2010 | premiums | Total | at year-end 2010 | |
| R.A. van Cerrevink | 470 | 25 | 62 | 557 | 2,405 |
| T.M.de Witte | 262 | 13 | 32 | 307 | 1.467 |
| T.T.J, de Groot (as of 1 September 2010) | 102 | - | 14 | 116 | 1.000 |
| 834 | 38 | 108 | 980 | 4,872 | |
| ofwhich allocated to | |||||
| VastNed Offices/Industrial N.V. | (384) | (50) | (434) | ||
| 450 | 38 | 58 | 546 |
In previous years, Mr Van Cerrevink acquired 271 VastNed Retail shares at his own expense. The remainder concerns shares granted in respect of the bonuses related to the direct investment results for 2006 and 2007 (definitive) and 2009 (conditional). Mr De Witte acquired 400 VastNed Retail shares in 2009 at his own expense. He acquired the remaining shares in respect of the bonuses related to the direct investment results for 2006 and 2007 (definitive) and 2009 (conditional). Mr De Groot acquired 1,000 VastNed Retail shares in 2010 at his own expense. VastNed Retail has not provided any guarantees with regard to these shares.
The direct investment result per share for 2010 was lower than the direct investment result per share for 2009; as a result of which the conditions for the direct investment result-related bonus in 2009 were not met. The VastNed Retail shares conditionally awarded in 2009 will not be awarded. This comprises 1,596 shares for Mr Van Cerrevink and 798 shares for Mr De Witte.
No option rights have been granted to the members of the Board of Management nor to the Supervisory Board members. Moreover, no loans or advances have been made to them or guarantees have been provided on their behalf.
For further details of the remuneration, please refer to the chapter 'VastNed Management Remuneration Report 2010' included elsewhere in this annual report.
The most important subsidiaries are:
| Interest and | ||
|---|---|---|
| Established in voting rights in % | ||
| VastNed Retail Nederland B.V. | Netherlands | 100 |
| - CV. Winkelcentrum Het Rond |
Netherlands | 50 |
| - Het Rond Houten B.V. |
Netherlands | 50 |
| VastNed Retail Monumenten B.V. | Netherlands | 100 |
| VastNed Management B.V. | Netherlands | 67 |
| VastNed Retail International Holdings B.V. | Netherlands | 100 |
| - Hispania Retail Properties S.L. |
Spain | 100 |
| - VastNed Management Espana S.L. |
Spain | 100 |
| - VastNed Emlak Yatirim ve Ingaat Ticaret A.5. |
Turkey | 100 |
| - VastNed Lusitania Investimentos Imobiliarios S.A. |
Portugal | 100 |
| VastNed France Holding S.A.R.L. | France | 100 |
| - S.C.I. Centre Marine Dunkerque |
France | 100 |
| - Icopro S.A.R.L. |
France | 100 |
| - Jeancy S.A.R.L. |
France | 100 |
| - Lenepveu S.A.R.L. |
France | 100 |
| - S.C.I. Limoges Corgnac |
France | 100 |
| - Palocaux S.A.R.L. |
France | 100 |
| - S.A.R.L. AB Renovation |
France | 100 |
| - S.A.R.L. Foncière Atlas |
France | 100 |
| - Parivolis S.A.R.L. |
France | 100 |
| - Plaisimmo S.A.R.L. |
France | 100 |
| - Val Thoiry S.A.R.L. |
France | 100 |
| VastNed Management France S.A.R.L. | France | 100 |
| Intervest Retail NV | Belgium | 72 |
| - Eurolnvest Retail Properties NV |
Belgium | 72 |
In consultation with the audit committee, the Board of Management has applied the following essential estimates and judgements that have a material effect on the amounts included in the financial statements.
The most important pending legal proceedings are set out under '24 Rights and obligations not recorded in the balance sheet'. If the outcome of these legal proceedings should differ from what is presented there, this might have a negative impact on the investment result.
As described in '2 Significant principles for financial reporting', all investment property in operation are valued at least once a year by independent certified appraisers. These appraisals are based on assumptions including the estimated rental value of the investment property, net rental income, future capital expenditure and the net market yield of the investment property. Furthermore, appraisers are focusing on other instruments, such as discounted cash flow parameters, in their appraisal of investment properties. The appraisers also make reference to market data on transaction prices for comparable investment properties. In 2010, there was a significant increase in transaction volume in the investment market. This provided appraisers with additional information on which to base the supporting rationale for their appraisals.
The investment properties in pipeline are valued internally as well as externally. The appraisals are based on assumptions such as the estimated rental value of the investment property in pipeline, future capital expenditure and the net market yield for the property. The actual outcome may differ from the assumptions, and this can have a positive or negative effect on the value of the investment properties in pipeline and as a consequence on the investment result.
The Board of Management has made a number of assumptions concerning the calculation of the provision for pension obligations. These assumptions involve inter alia assumptions about the future return to be realised on investments and about future salary rises. If the realisation should prove to deviate materially, an actuarial result might ensue involving the risk that this actuarial result might fall outside the 'corridor' and would have to be included in the investment result for 2011.
If it is possible to realise the disposal of a property through the disposal of shares in a company (subject to the usual tax rules) which has ownership ofthe investment properties in question, no income tax is payable on the disposal. The transfer of the deferred tax liability to the purchaser will in that case normally take place through a reduction in the sale price of the shares, whereby (generally) a deferred tax liability of 50% of the nominal tax rate is taken into account. The Board of Management of VastNed Retail is of the opinion that in these cases the deferred tax liabilities should be valued at 50% of the nominal tax rate. The Board of Management of VastNed Retail has applied this valuation method to the deferred tax assets and liabilities in respect of the Turkish and Portuguese investment properties. If these deferred tax assets and liabilities were valued at 100% of the nominal tax rate, the effect on equity as at 31 December, 2009 would be a negative amount of € 1.8 million.
The nominal tax rate in Spain is 30%. However, if a capital gain realised from a disposal is reinvested in Spain within three years, income tax paid is refunded to the value of 12% of the capital gain realised from the sale. The effective tax rate then amounts to 18%. The Board of Management of VastNed Retail is of the opinion that this effective tax rate should be applied when determining the deferred tax liability. If these deferred tax liabilities were valued at the nominal 30% tax rate, there would be a negative effect on equity of € 19.5 million as per 31 December 2010.
The total expense ratio for 2010 was 2.15% (2009: 2.34%).
The total expense ratio is calculated by dividing the total costs for the reporting period by the average equity of VastNed Retail shareholders. The total costs include ground rents paid, net service charge expenses, operating expenses, general expenses and income tax expense.
These costs are adjusted to allow for the share of these costs attributable to non-controlling interests.
The consolidated annual accounts were drawn up by the Board of Management and authorised for publication by the Supervisory Board on 3 March 2011.
(x€ 1.000)
| 2010 | 2009 | |
|---|---|---|
| ASSETS | ||
| Investment properties in operation | 13,831 | 13,520 |
| Accrued assets in respect of lease incentives | 20 | 20 |
| Total investment properties | 13,851 | 13,540 |
| Participations in group companies | 1,224.295 | 1,137,262 |
| Financial derivatives | 639 | - |
| Total fixed assets | 1.238.785 | 1.150.802 |
| Group companies | 170,705 | 102,517 |
| Debtors and other receivables | 425 | 157 |
| Cash and cash equivalents | 184 | 473 |
| Toto/current ossets | 171.314 | 103.147 |
| Toto/ossets | 1.410.099 | 1.253,949 |
| EQUITY AN D LIABILITIES | ||
| Capital paid-up and called | 92,476 | 91,326 |
| Share premium reserve | 471,370 | 472,554 |
| Hedging reserve in respect of financial derivatives | (31.649) | (31,083) |
| Translation reserve | (780) | (103) |
| Revaluation reserve | 494,131 | 481,265 |
| Other reserves | (149,154) | (13,443) |
| Investment result attributable to VastNed Retail shareholders | 99,176 | (61,383) |
| Equity VastNed Retail shareholders | 975.570 | 939.133 |
| Long-term interest-bearing loans | 238,674 | 139,912 |
| Financial derivatives | 9,551 | 8.144 |
| Guarantee deposits | 198 | 200 |
| Total long-term liabilities | 248.423 | 148,256 |
| Payable to banks | 182,880 | 148,203 |
| Redemption of long-term interest-bearing loans | - | 15.000 |
| Income tax | 77 | 83 |
| Other liabilities and accruals | 3,149 | 3,274 |
| Total short-term liabilities | 186.106 | 166,560 |
| Total equity and liabilities | 1.410.099 | 1.253,949 |
(x€ 1,000)
| 2010 | 2009 | |
|---|---|---|
| Company result | 2.878 | (2,397) |
| Result from participations in group companies | 96,298 | (58,986) |
| 99.176 | (61,383) |
The company profit and loss account has been shown in abbreviated form pursuant to 2:402 ofthe Netherlands Civil Code.
The company annual accounts are part of the 2010 annual accounts, which also include the consolidated annual accounts.
The Company has availed itself of the provisions of 2:379 sub 5 of the Netherlands Civil Code. The list as referred to in this Article has been filed with the offices of the Commercial Register in Rotterdam.
The Company has issued certificates of guarantee for a number of group companies in accordance with 2:403 of the Netherlands Civil Code.
The company annual accounts have been prepared in accordance with Part 9 of Book 2 of the Netherlands Civil Code. In the preparation of the company annual accounts, the provisions of 2:362 sub 8 of the Netherlands Civil Code have been used.
The valuation principles for assets and liabilities and the method of determining the result are identical to those used in the consolidated annual accounts. Reference is therefore made to the notes to those accounts. The participations in group companies have been stated at net asset value.
The Company heads a group tax entity for the purposes of Dutch corporate income tax and a group tax entity for the purposes of value added tax and is consequently jointly and severally liable for the tax liabilities of the group tax entity as a whole.
| 2010 | 2009 | |
|---|---|---|
| Balance as at 1 January | 13,520 | : 4.474 |
| Value movements | 311 | (954) |
| Balance as at 31 December | 13,831 | 13.520 |
| Accrued assets in respect of lease incentives | 20 | 20 |
| Appraisal value as at 31 December | 13.851 | 13.540 |
| PARTICIPATIONS IN GROUP COMPANIES | ||
| 2010 | 2009 | |
| Balance as at 1 January | 1,137.262 | 1,214,315 |
| Share in investment result | 96,298 | (58,986) |
| Share in other comprehensive income | (505) | (10,048) |
| Payments received | (8,773) | (7,694) |
| Other movements | 13 | (325) |
| Balance as at 31 December | 1.224.295 | 1.137.262 |
As at 31 December 2010 VastNed Retail together with its subsidiaries held 3,675,960 Intervest Retail NV shares (31 December 2009: 3,675,960 shares). The net asset value per share on 31 December 2010 was € 35.32 (31 December 2009: € 34.29 per share).
The share price of Intervest Retail NV shares on 31 December 2010 was € 43.00 per share (31 December 2009: €37.60 per share).
| Hedging | Investment | |||||||
|---|---|---|---|---|---|---|---|---|
| reserve | result | |||||||
| in respect of | attributable to | Equity | ||||||
| Capital paid-up | Share premium | financial | Translation | Revaluation | Other | VastNed Retail | VastNed Retail | |
| and called | reserve | derivatives | reserve | reserve | reserves | shareholders | shareholders | |
| Balance as at | ||||||||
| 1 January 2009 | 82,088 | 407,460 | (17,864) | 76 | 575,507 | 1,957 | (51,054) | 998,170 |
| Investment result | (61.383) | (61.383) | ||||||
| Value movements in | ||||||||
| financial derivatives | (13,219) | (13,219) | ||||||
| Translation differences | ||||||||
| on net investments | (179) | (179) | ||||||
| Share issue | 8,302 | 67.249 | 75,551 | |||||
| Costs of share issue | (1.198) | (1,198) | ||||||
| Stock dividend | 936 | (936) | ||||||
| Costs of stock dividend | (21) | (21) | ||||||
| Final dividend for previous | ||||||||
| financial year in cash | (37.832) | (37,832) | ||||||
| Interim dividend | ||||||||
| 2009 in cash | (20.756) | (20.756) | ||||||
| Contribution from | ||||||||
| profit appropriation | (88,886) | 88,886 | ||||||
| Allocation to revaluation | ||||||||
| reserve | (94.242) | 94.242 | ||||||
| Balance as at | ||||||||
| 31 December 2009 | 91,326 | 472,554 | (31,083) | (103) | 481,265 | (13,443) | (61,383) | 939,133 |
| Investment result | 99,176 | 99,176 | ||||||
| Value movements in | ||||||||
| financial derivatives | (566) | (566) | ||||||
| Translation differences | ||||||||
| on net investments | (677) | (677) | ||||||
| Stock dividend | 1,150 | (1.150) | ||||||
| Costs of stock dividend | (34) | (34) | ||||||
| Final dividend for previous | ||||||||
| financial year in cash | (41,117) | (41,117) | ||||||
| Interim dividend | ||||||||
| 2010 in cash | (20,345) | (20,345) | ||||||
| Contribution from | ||||||||
| profit appropriation | (102,500) | 102,500 | ||||||
| Allocation to revaluation | ||||||||
| reserve | 12,866 | (12,866) | ||||||
| Balance as at | ||||||||
| 31 December 2010 | 92,476 | 471.370 | (31.649) | (780) | 494.131 | (149.154) | 99.176 | 975.570 |
The authorised share capital is € 375.0 million and is divided into 74,999,990 ordinary shares of € 5 par value and 10 priority shares of € 5 par value.
The legal reserves comprise the Hedging reserve in respect of financial derivatives, the Translation reserve and the Revaluation reserve.
The company annual accounts were drawn up by the Board of Management and authorised for publication by the Supervisory Board on 3 March 2011.
The company's articles of association confer special controlling rights on the priority shares. The priority shares have been placed at par value with the Stichting Prioriteit VastNed Retail. The objective of this foundation is to acquire ownership ofthe priority shares in the Company and to exercise all rights vested in such shares, including the voting right, the receipt of dividend and other distributions and all that which is related thereto in the broadest sense.
The Board of Management of the Stichting Prioriteit VastNed Retail consists of the members of the Board of Management and of the Supervisory Board of VastNed Retail. They are the A directors and B directors respectively of the Stichting Prioriteit VastNed Retail. A directors are not entitled by the articles of association to cast more votes than B directors.
The Company's articles of association stipulate that a dividend is paid out on the priority shares of 5% of the nominal amount. The remaining profit is then placed at the disposal of the General Meeting of Shareholders. The Company may only make distributions to shareholders insofar as VastNed Retail shareholders' equity exceeds the sum of the paid-up and called capital augmented by the reserves required by law to be maintained. In order to retain its fiscal status as an investment institution, the Company must distribute the taxable profit, after making permitted reservations, within eight months after the end of the year under review.
The Board of Management proposes to distribute the investment result as follows (x € 1,000):
| Investment result attributable to VastNed Retail shareholders | 99,176 |
|---|---|
| To be added to the reserves | (31,393) |
| Available for dividend payment | 67,783 |
| Distributed earlier as interim dividend | (20,345) |
| Available for final dividend payment | 47.438 |
The Board of Management proposes to distribute the final dividend as follows:
and to add the remainder of the distributable profit to the other reserves. Shareholders opting for distribution in cash plus shares must ensure that this is effected prior to 14 May 2011. As from this date, they can only claim the cash dividend within the parameters as laid down in the articles of association.
To the shareholders of VastNed Retail N.V.
We have audited the accompanying financial statements 2010 of VastNed Retail N.V., Rotterdam. The financial statements include the consolidated financial statements and the company financial statements. The consolidated financial statements comprise the consolidated balance sheet as at 31 December 2010, the consolidated statements of comprehensive income, the consolidated movements in equity and the consolidated cashflow statement for the year then ended, and notes, comprising a summary of the significant accounting policies and other explanatory information. The company financial statements comprise the company balance sheet as at 31 December 2010 the company profit and loss account for the year then ended and the notes, comprising a summary ofthe accounting policies and other explanatory information.
Management is responsible for the preparation and fair presentation of these financial statements in accordance with International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Dutch Civil Code, and for the preparation of the Report of the Board of Management in accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore management is responsible for such internal control as it determines is necessary to enable the preparation of the financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with Dutch law. including the Dutch Standards on Auditing. This requires that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
In our opinion, the consolidated financial statements give a true and fair view of the financial position of VastNed Retail N.V. as at 31 December 2010 and of its result and its cashflows for the year then ended in accordance with International Financial Reporting Standards as adopted by the European Union and with Part 9 of Book 2 of the Dutch Civil Code.
In our opinion, the company financial statements give a true and fair view of the financial position of VastNed Retail N.V. as at 31 December 2010 and of its result for the year then ended in accordance with Part 9 of Book 2 ofthe Dutch Civil Code.
Pursuant to the legal requirement under Section 2:393 sub 5 at e and f of the Dutch Civil Code, we have no deficiencies to report as a result of our examination whether the Report of the Board of Management, to the extent we can assess, has been prepared in accordance with Part 9 of Book 2 of this Code, and whether the information as required under Section 2:392 sub 1 at b-h has been annexed. Further we report that the Report of the Board of Management, to the extent we can assess, is consistent with the financial statements as required by Section 2:391 sub 4 of the Dutch Civil Code.
Rotterdam, 21 March 2011 Deloitte Accountants B.V.
H.H.H.Wieleman
Sustained revenues can only be generated through balanced decisions taken by competent management and clear rules on how the Company should be governed. Good corporate governance consequently forms the basis of trust between the Company and its shareholders. With a view to the transparency that is an essential part of corporate governance, VastNed Retail is continuing its practice of reporting extensively on how its corporate governance operates and the extent to which the company complies with the Code. This chapter also provides information about the organisation, the legal structure of VastNed Retail and its subsidiaries, and the people responsible for the Company. VastNed Retail's corporate governance structure is also described in detail.
VastNed Retail N.V. is a public limited liability company founded under Dutch law, vested in the Netherlands and is listed on the NYSE Euronext Amsterdam. VastNed Retail is part of the VastNed Croup. The VastNed Group, which is not itself a legal entity, consists of VastNed Retail, VastNed Offices/Industrial and their respective subsidiaries. The Board of Management is in the hands of VastNed Management B.V. ('VastNed Management'). The shares in VastNed Management are held by VastNed Retail and VastNed Offices/ Industrial. This joint management realises cost benefits as well as synergy due to the exchange of knowledge.
VastNed Retail has the status of an investment company with variable capital pursuant to 2:76 sub a of the Netherlands Civil Code. An investment company with variable capital is a public limited company founded under Dutch law:
The legal structure of VastNed Retail and its major subsidiaries is presented below.
VastNed Retail is a listed company that with the exception of five French high street shops, acts as a national and international holding company and finance company. VastNed Retail has the status of a fiscal investment institution in the Netherlands and is subject to the SIIC regime in France.
VastNed Management is the sole statutory Director of VastNed Retail. VastNed Management has three statutory directors and a Supervisory Board consisting of the chairmen and vice-chairmen of the Supervisory Boards of VastNed Retail and VastNed Offices/Industrial. One ofthe key tasks of this Supervisory Board is to create the management structure for the selection, appointment and dismissal of members of the Board of Management and the remuneration of these members. VastNed Management does not have a profit objective on its own behalf. Consequently, it has entered into a partnership agreement with VastNed Retail and VastNed Offices/ Industrial as well as an agreement with them regarding the allocation of its costs (cost allocation agreement). VastNed Management carries out asset management activities for the entire property portfolio and all property management for the Dutch property portfolio.
Costs relating directly to VastNed Retail or VastNed Offices/Industrial or to the property of these Companies or its subsidiaries are recognised directly by the Company in question. Other costs that cannot be allocated directly are borne by VastNed Management and charged on to VastNed Retail and VastNed Offices/Industrial in line with the actual work done. This is assessed on an annual basis; the ratio in 2010 was 54% to 46%. Two thirds of the shares in VastNed Management are held by VastNed Retail and one-third by VastNed Offices/Industrial. This ratio has its origins in the size of the property portfolios at the time of the conclusion of the cost allocation agreement in January 1996; it does not affect the results or the equity position of the two shareholders. The agreement has a term of 10 years and is renewed each time for periods of five years with due observance of a notice period of two years; the next expiry date is 31 December 2015. A further agreement (to the partnership agreement and the cost allocation agreement) includes specific change of control clauses that stipulate that, among other things, in the event of a public bid on VastNed Offices/ Industrial a severance payment is established that offsets the negative effects of the loss of the partnership and vice versa.
VastNed Management has a licence within the meaning of 2:65 sub 1 part a of the Act on Financial Supervision. This licence authorises VastNed Management to carry out the management of VastNed Retail and VastNed Offices/Industrial.
VastNed Retail Nederland is a company holding 322 of the 324 properties in the Netherlands and a share in the limited partnership Winkelcentrum Het Rond. VastNed Retail Nederland also has the status of a fiscal investment institution and is part ofthe VastNed Retail fiscal unity.
The Winkelcentrum Het Rond limited partnership holds VastNed Retail Nederland's stake in the Het Rond shopping centre in the City of Houten's city centre, the Netherlands. VastNed Retail Nederland is a limited partner with a 49.5% interest in the financial results of this limited partnership. Due to the transparent fiscal structure of this limited partnership, the profits and losses from this interest accrue to VastNed Retail Nederland and are thus subject to the regime of the fiscal investment institution.
The private limited company Het Rond Houten, a 50% subsidiary of VastNed Retail Nederland, acts as managing partner of the Winkelcentrum Het Rond limited partnership. This company is entitled to 1 % of the financial results of this limited partnership. VastNed Management is one of the two directors of Het Rond Houten and carries out the day-to-day property management. VastNed Retail, the listed holding company, consolidates this subsidiary and the limited partnership fully in its financial reporting and recognises the non-controlling interest under equity.
VastNed Retail Monumenten holds a single property (Rembrandtplein 7, Amsterdam), which is listed as a historic building. This company also has the status of a fiscal investment institution and is part of the VastNed Retail fiscal unity.
VastNed Retail International Holdings is the holding company for the Spanish, Turkish and Portuguese investments of VastNed Retail. The properties themselves are held by local companies. This company is not a fiscal investment institution and is subject to taxation according to the usual rules in the Netherlands. Since its operations are limited to holding participations, any income will generally qualify for the participation exemption so that this company is effectively not liable for tax.
The Spanish investments are held by Hispania Retail Properties, a wholly-owned subsidiary of VastNed Retail International Holdings. This company also acts as a holding company for VastNed Emlak Yatirim ve Ingaat Ticaret.
The property and asset management of the Spanish and Portuguese portfolios is carried out by VastNed Management Espana, a wholly-owned Spanish subsidiary of Hispania Retail Properties. VastNed Management Espana also carries out part of the asset management of the Turkish property portfolio.
The Turkish investments are held and managed by VastNed Emlak Yatirim ve Ingaat Ticaret, a Turkish subsidiary of Hispania Retail Properties.
The Portuguese investments are held by VastNed Lusitania Investimentos Imobiliarios, a wholly-owned Portuguese subsidiary of VastNed Retail International Holdings.
The French property investments are held directly or indirectly by VastNed Retail's permanent French establishment. The major part of the property investments is held by a number of local French subsidiaries. VastNed Retail and the subsidiaries holding the French property investments are, with the exception of two entities, subject to the so-called SIIC regime. Under this French tax regime, VastNed Retail and its French subsidiaries are exempt from tax on profits both on its French property investments-related operating income and on the capital gains realised in this respect.
VastNed France Holding is the holding company for the French property companies and is subject to the SIIC regime.
VastNed Management France is responsible for the property and asset management of the French property portfolio.
| letheriands | VastNed Retail NV | |||||
|---|---|---|---|---|---|---|
| VastNed Retail Nederland BV. 49.5% CV Winkelcentrum Het Rond 1. 0 % |
50.0% Het Rond Houten BV |
VastNed Retail Monumenten BV |
66,7% VastNed Management BV |
VastNed Retail International Holdings BV | ||
| elgium | 72,4% Intervest Retail NV Eurolnvest Retail Properties NV |
|||||
| Palocaux SCI Centre Marine Jeancy SARL Dunkergue SARL |
VastNed Management France SARI Val Thoiry Lenepveu SARL SARL |
Plaisimmo SARL |
Parivolis Icopro SARL |
SARL | VastNed France Holding SARL SCI Limoges Corgnac |
|
| pain | Hispania Retail Properties SL 1 VastNed Management Espana SL |
|||||
| ortugal | VastNed Lusitania Investimentos Imobiliarios SA | |||||
| urkey | VastNed Emlak Yatirim ve |
Palocaux is the French property company that holds most of the French high street shops. Palocaux is subject to the SIIC regime.
Icopro holds the larger peripheral French retail warehouses. Icopro is subject to the SIIC regime.
The companies Centre Marine Dunkerque, Val Thoiry, Plaisimmo, Limoges Corgnac, Jeancy, Lenepveu and Parivolis hold VastNed Retail's properties in Dunkirk, Thoiry, Plaisir, Limoges (Limoges Corgnac shopping centre), Nancy, Angers (Rue Lenepveu) and Paris (Rue de Rivoli) respectively. All these companies are subject to the SIIC regime.
As at 31 December 2010, VastNed Retail had a 72.4% interest in the Bevak Intervest Retail, which is listed on NYSE Euronext Brussels. A Belgian Bevak (investment company with fixed capital) essentially has a tax-exempt status and as such is comparable to a Dutch fiscal investment institution. VastNed Retail consolidates this subsidiary fully and recognises the non-controlling interest under equity. Intervest Retail carries out its own asset and property management. All employees have employment contracts with Intervest Retail without there being a shared management company acting as intermediary. Some directors and members of the Board of Management of Intervest Retail carry out their work through the intermediary of their own company.
VastNed Management is the sole statutory Director of VastNed Retail. VastNed Management is represented by its Board of Management, appointed in accordance with the articles of association, and is in charge of day-to-day management. Its responsibilities include the realisation of the Company's targets, the strategy and associated risk profile, developments in the results and aspects of corporate social responsibility relevant to the Company. The Board of Management carries out its tasks within a framework set together with the Supervisory Board and submits the operational and financial targets, the strategy and the boundary conditions to be observed to the Supervisory Board for approval. VastNed Retail's articles of association stipulate that the number of directors should be fixed by the Supervisory Board. The Board of Management is responsible for having full and correct information at its disposal. The Board of Management and two Directors of VastNed Management not mandated under the articles of association together make up the management team. This team generally meets every fortnight.
VastNed Retail's Board of Management is appointed by the General Meeting of Shareholders. If one or more Directors are to be appointed, the holder of the priority shares (the Priority Shareholder) will make a binding nomination. However, the General Meeting of Shareholders can remove the binding nature of the nomination if a resolution to that effect is passed by an absolute majority of the votes cast representing at least one third of the issued capital. If that is not the case but there has been a vote with an absolute majority voting in favour of the resolution to remove the binding nature of the nomination and these votes represent less than one third of the issued capital, a new meeting is called in which the resolution can be adopted irrespective of the proportion of capital represented at this meeting.
The Director(s) can be suspended or dismissed at any time by a resolution adopted by the General Meeting of Shareholders by an absolute majority of the votes if the proposal for the suspension or dismissal was made by the Priority Shareholder. Without such a proposal by the Priority Shareholder, Directors can be suspended or dismissed at any time by the General Meeting of Shareholders by a resolution passed by an absolute majority of the votes provided that majority represents at least one third of the issued capital. A Director can also be suspended by a resolution of the Supervisory Board.
Reinier A. van Cerrevink (3 March 1950) Nationality: Dutch Position: Managing Director, CEO Joined the company: 1 July 2002 Appointment to present position: 1 September 2002 Previous positions: various management positions with: - Robeco (Weiss Peck & Greer); - Rodamco,and; - ABN AMRO.
Other positions: Member of the Supervisory Board of the Stadsherstel Rotterdam Foundation. Education: Dutch law, Utrecht University, the Netherlands.
Tom M. de Witte (7 September 1966)
Nationality: Dutch
Position: Managing Director, CFO
Joined the company: 16 June 2003
Appointment to present position: 16 June 2003
Previous positions: Accountant with Deloitte
Education: Business economics, Dutch law and accountancy (RA), Erasmus University Rotterdam,
the Netherlands.
Toco T.j. de Groot MRE MRICS (20 February 1963)
Nationality: Dutch
Position: Managing Director, CIO
Joined the company: 1 September 2010
Appointment to present position: 1 September 2010
Previous positions:
Letting and Investment Property Agent with DTZ Zadelhoff;
CEO Cortona Holdings;
Founder and CIO of GPT Halverton, and;
Partner Fund Manager MSeven Real Estate.
Other positions: Member of the Supervisory Board of seniors' housing specialist Hobion. Houten. Education: Dutch law. Utrecht University, and real estate economics. University of Amsterdam. the Netherlands.
Arnaud C.H. du Pont (25 May 1966)
Nationality: Dutch Position: General Counsel/Director Investor Relations Joined the company: 1 January 2000 Previous positions: - tax consultant with BDO, and;
Education: Tax law, Erasmus University Rotterdam, the Netherlands.
Wim Fleggen (3 November 1957)
Nationality: Dutch
Position: Director
Joined the company: 15 February 2003
Previous positions:
various positions with Robeco, Rodamco, Roproperty and Altera Vastgoed, and;
worked as an independent consultant.
Education: Economics, Erasmus University Rotterdam, the Netherlands.
The Managing Directors and other members of the management team have reported all other positions of any significance held by them. None of them are members of the Supervisory Board of another listed company. Acceptance of such a position would require approval from this Company's Supervisory Board.
Please refer to the separate remuneration report elsewhere in this annual report.
Shore ownership ofthe members ofthe Board of Management
| R.A. van Cerrevink | T.M.de Witte | T.T.J, de Groot | |
|---|---|---|---|
| Number of shares as at 1 January 2010 | 2,405 | 1,467 | |
| Movements | 1,000 | ||
| Number of shares as at 31 December 2010 | 2.405 | 1.467 | 1,000 |
In 2010,1,596 and 798 shares have been granted conditionally to Mr Van Cerrevink and Mr De Witte respectively as direct investment result-related bonus. VastNed Retail has not provided any guarantees with regard to the shares held by the Board of Management. The above share ownership was reported to the AFM at the time of acquisition and can be viewed at www.afm.nl. VastNed Retail has drawn up regulations as referred to in 5:65 ofthe Act on Financial Supervision. These regulations determine the periods during which members of the Supervisory Board, members of the Board of Management and employees of VastNed Retail and its subsidiaries, including VastNed Management, may trade in VastNed Retail shares (the open periods). The periods preceding the publication of financial reports are closed periods, during which trading is not permitted. The full text can be consulted on www.vostned.n/.
In addition to the management team, which is in charge of the central management and coordination of the various country portfolios from its base in the Netherlands, there is a Dutch team of 14 property specialists headed by Ms Jacqueline van der Mispel. These activities are carried out from the Rotterdam head office.
The Spanish organisation, VastNed Management Espana, vested in Madrid, is headed by Mr Luis Vila Barrón. VastNed Management Espana has 12 employees in total and carries out activities in the areas of property and asset management, and administration. The operations in Turkey and Portugal are also run from this location. A local office has not been set up in Portugal in view of the nature and size of the Portuguese operations.
The French organisation, VastNed Management France, which is located in Paris, is headed by Mr BenoTt Dantec. VastNed Management France has 22 employees in total. They are responsible for asset and property management of the property portfolio, and administration. Only a limited part of the property management is outsourced to third parties.
The Belgian activities are handled by Intervest Retail in Antwerp. The day-to-day management is in the hands of the executive committee, consisting of Mr Jean-Paul Sols (CEO), Ms Inge Tas (CFO) and Mr Rudi Taelemans (COO). Mr Reinier van Cerrevink sits on the executive committee as Managing Director. The Belgian team of property specialists consists of 4 employees. There are two members of the Board of Management of VastNed Management representing VastNed Retail on the Board of Management of Intervest Retail. On 31 December 2010 this board consisted of Mr Reinier van Cerrevink and Mr Tom de Witte, representing VastNed Retail, Mr Hubert Roovers, a former employee of VastNed Management, and a number of independent members, namely Mr Paul Christiaens, Mr Gerard Philippson, Mr Nick van Ommen and Mr Chris Peeters.
Asset management in Turkey is carried out by Mr Bora Karli with the assistance of three employees at the local office in Istanbul. The Spanish country manager, Mr Luis Vila Barrón, is closely involved in the Turkish operations. Mr Luis Vila Barrón and the members of the Board of Management of VastNed Management make up the Board of Management of the Turkish legal entity together with Mr Bora Karli.
VastNed Retail has a Supervisory Board in addition to its Board of Management. The members ofthe Supervisory Board are appointed by the General Meeting of Shareholders. If one or more members of the Supervisory Board are to be appointed, the Priority Shareholder will make a binding nomination. However, the General Meeting of Shareholders can remove the binding nature of the nomination if a resolution to that effect is passed by an absolute majority of the votes cast representing at least one third of the issued capital. If that is not the case but there has been a vote with an absolute majority voting in favour of the resolution to remove the binding nature of the nomination and these votes represent less than one third of the issued capital, a new meeting is called in which the resolution can be adopted irrespective of the proportion of capital represented at this meeting. The members of the Supervisory Board can be suspended or dismissed at any time by a resolution adopted by the General Meeting of Shareholders by an absolute majority of the votes if the proposal for the suspension or dismissal was made by the Priority Shareholder. Without such a proposal by the Priority Shareholder, Supervisory Board members can be suspended or dismissed at any time by the General Meeting of Shareholders by a resolution passed by an absolute majority ofthe votes provided that majority represents at least one third ofthe issued capital. Supervisory Board members step down at the latest in the fourth financial year following the financial year in which they were appointed. A Supervisory Board member who is stepping down can be reappointed forthwith, with the proviso that members can only serve on the Supervisory Board for a maximum of three four-year terms.
Wouter J. Kolff (23 July 1945) Nationality: Dutch Position: retired Appointment: 4 April 2006 (also as chairman) Previous positions:
Various management and board positions with ABN AMRO (1971 -1990), most recently as chairman of the executive committee of ABN Belgium, and;
Various management and board positions with Rabobank, most recently as vice-chairman of the board of Rabobank International (1990-2006).
Other positions:
Education: General economics, Erasmus University Rotterdam.
N.j. (Klaas) Westdijk MBA (20June 1941)
Nationality: Dutch
Position: retired
Appointment: 19 April 2000; vice-chairman since 6 April 2004
Previous positions:
Other positions:
Education: Dutch law, Utrecht University, and MBA, University of Chicago, USA.
Nationality: Dutch
Position: Executive Vice-president & CFO Schiphol Group
Appointment: 6 April 2004
Previous positions:
Hong Kong and the Far East.
Other positions:
Education: Econometrics (doctoral), Erasmus University Rotterdam; PhD from VU University Amsterdam.
Nationality: Dutch
Position: shareholder and partner in Mirveld Capital Partners (informal investor)
Appointment: 3 April 2007
Previous positions:
Education: Business Administration, Nyenrode Business University, Breukelen, and Management Program, Harvard University, USA.
Mr Jeroen B.J.M. Hunfeld, 2011 (eligible for re-election) Mr Pieter M. Verboom, 2012 (eligible for re-election) Mr N.J. (Klaas) Westdijk MBA, 2012 (not eligible for re-election) Mr Wouter J. Kolff, 2014 (eligible for re-election)
The Supervisory Board supervises the day-to-day policy of the Board of Management and assists the Board of Management with advice. In carrying out its tasks, the Supervisory Board considers the interests of VastNed Retail and its associated companies, in doing so weighing up the relevant interests of all stakeholders (including the shareholders). The Supervisory Board is itself responsible for the quality of its performance. VastNed Retail provides the Supervisory Board with the necessary resources for the execution of its tasks. Members of the Supervisory Board will resign before the end of their term if they show inadequate performance or in the event of structural incompatibility of interests or similar problems. The tasks of the Supervisory Board include:
Each year after the close of the financial year, the Supervisory Board will draw up and publish a report of the performance and activities ofthe Supervisory Board and its committees during the financial year in question.
For a full list ofth e Supervisory Board's tasks, please see the regulations drawn up by the Supervisory Board. They can be found on the website www.vostned.n/.
The chairman of the Supervisory Board has a coordinating task. The chairman ensures compliance with the requirements ofthe best practice provisions detailed in III.4.1 ofthe Code. He is assisted in this by the General Counsel (Company Secretary). The chairman is neither a former member of the Board of Management nor an employee of VastNed Retail or any of its subsidiaries.
The profile ofthe Supervisory Board is included in the regulations ofthe Supervisory Board and may be consulted on www.vostned.n/.
The audit committee is charged with supervising the financial affairs of VastNed Retail in the broadest sense of the word. Please refer to www.vostned.n/ for an extensive overview of its tasks.
four times a year, the audit committee draws up a report of its deliberations and findings. The committee reports on the developments in the relationship with the external auditor at least once a year. A thorough assessment is carried out of the external auditor's performance once every four years. The external auditor is sent the financial information on which the quarterly, semi-annual and annual figures are based and given the opportunity to make comments. The audit committee is the first point of contact for the external auditor if any irregularities are encountered. The committee decides whether members ofthe Board of Management or the external auditor are to attend its meetings. The committee meets at least once a year with the external auditor in the absence of the members of the Board of Management.
The audit committee consists of two independent members. Mr Verboom is chairman; Mr Hunfeld is a member. Mr Verboom is a financial expert.
The remuneration committee is charged with advising the Supervisory Board on the remuneration policy in the broadest sense of the word. Please refer to www.vostned.n/ for an extensive overview of its tasks. They include submitting a proposal to the Supervisory Board regarding the remuneration policy to be pursued for the Board of Management, for adoption by the General Meeting of Shareholders.
In addition, the remuneration committee draws up the remuneration report for adoption by the Supervisory Board. The Supervisory Board's remuneration report is included in this annual report and placed on the Company's website. It contains the information stipulated in the Code.
In view of the fact that the Director under the articles of association, VastNed Management, constitutes the Board of Management of VastNed Retail as well as VastNed Offices/Industrial, the remuneration committee consists of the members of the Supervisory Board of VastNed Management. This board has four independent members, noneof whom are members of the Board of Management of another Dutch listed company. Mr Westdijk is the chairman and Mr Kolff is a member of the remuneration committee. Mr W.M. Steenstra Toussaint and Mr H.W. Breukink are members ofthe remuneration committee representing VastNed Offices/Industrial.
The tasks of the nomination committee include drawing up selection and appointment criteria, periodically assessing the size and composition ofthe Supervisory Board and the Board of Management, as well as evaluating the performance of the members of the Supervisory Board and the Board of Management, supervising the Board of Management in the matter of senior management appointments and taking concrete decisions with regard to selection and appointments.
In view of the fact that the Director under the articles of association, VastNed Management, constitutes the Board of Management of as well as VastNed Retail of VastNed Offices/ Industrial, the nomination committee consists of the members of the Supervisory Board of VastNed Management. This board has four independent members, none of whom are members of the Board of Management of another Dutch listed company. Mr Kolff is the chairman and Mr Westdijk is a member of the nomination committee. Mr W.M. Steenstra Toussaint and Mr H.W. Breukink are members ofthe nomination committee representing VastNed Offices/Industrial.
The Supervisory Board receives reports of the meetings of the three committees.
The members of the Supervisory Board receive a payment of € 21,000 per annum. The chairman receives an annual payment of € 27,000 and the vice-chairman receives € 24,000. In view ofthe labour-intensive nature of their duties, members of the audit committee receive an additional € 4,000 per annum. The members of the remuneration committee receive an additional € 3,000 per annum. The members of the remuneration committee are all members of the Supervisory Board of VastNed Management. No additional remuneration is paid for the membership ofthe Supervisory Board of VastNed Management. Apart from the aforementioned payments, the members do not receive any further compensation other than reimbursements of actually incurred expenses.
The above referenced remuneration for members of the Supervisory Board applies to going concern situations. This assumes eight annual meetings (four meetings related to financial reporting, one meeting for (and participation in) the General Meeting of Shareholders, one budget and strategy meeting and two additional meetings). On the presumption that the activities ofthe Supervisory Board and its members in exceptional circumstances can be significantly more time consuming than in the going concern situation, the General Meeting of Shareholders on 8 April 2008 adopted the resolution that in situations that are beyond the going concern situation, additional remuneration in the amount of € 2,000 per day would be paid to the relevant members of the Supervisory Board. Apart from the aforementioned payments, the members do not receive any further compensation other than reimbursements of actually incurred expenses.
Members ofthe Supervisory Board shall only hold shares in VastNed Retail as a long-term investment and shall purchase these shares at their own cost. When purchasing and selling shares, they act in accordance with the regulations adopted by the Company as referred to in 5:65 ofthe Act on Financial Supervision. Transactions are also reported to the AFM {www.afm.nl) in accordance with the relevant rules. As at 31 December 2010, none of the members ofthe Supervisory Board held any shares in VastNed Retail.
VastNed Retail acknowledges the importance of proper corporate governance as the basis of trust between the Company and its shareholders. With a view to the transparency that is an essential part of corporate governance, VastNed Retail is continuing its practice of reporting extensively in this annual report on how its corporate governance operates and the extent to which the Company complies with the Code.
VastNed Retail subscribes to the Code and its principles and currently complies with virtually all the best practice provisions of the Code. At present, VastNed Retail deviates from the principles and best practice provisions as formulated in the Code in three respects. They are:
Limitation of any severance payment to a maximum of one year's salary: In conformance with the Code, the severance payment of the members of the Board of Management is limited to a maximum of one year's salary. This is in line with the Code. An exception to this is the employment contracts of Mr Van Cerrevink and Mr De Witte, since they joined the Company prior to the publication of the Code. When their contracts were concluded, severance arrangements were agreed that also took account of the years of service with previous employers. These arrangements may result in compensation of more than one year's salary.
The objective of striving for diversity in the composition of the Supervisory Board linked to concrete targets: The Supervisory Board supports the importance of diversity in the composition of the Supervisory Board, but considers it undesirable to formulate concrete goals in this area. The candidate's competence must always remain the overriding factor in appointments to the Supervisory Board.
The documents that define the corporate governance structure, such as the articles of association, the regulations of the Supervisory Board and the registration document as required by the Act on Financial Supervision, have been made available by the Company on its website www.vostned.n/.
None of the members of the Supervisory Board is or has been a member of the Board of Management or an employee of VastNed Retail orof any company associated with it. Neither have any of the said members received any remuneration other than for membership of the Supervisory Board, nor have they had significant business relations with VastNed Retail or any associated company during the year prior to their appointment. None of the members of the Board of Management is a shareholder, member of the Board of Management or Supervisory Board member of any company that holds 10% or more of the shares in VastNed Retail. This is also the case for the immediate family ofthe members in question.
VastNed Retail has not entered into any transactions with any of the members of the Board of Management other than those arising from their employment contracts.
None of the members of the Board of Management is in competition with VastNed Retail in any way. No payments have been made by VastNed Retail to the members of the Board of Management or members of their families, no member ofthe Board of Management has granted any third parties an unjustified advantage or arranged for himself or his family to gain from commercial opportunities provided by VastNed Retail. In view of the corporate governance pursued by VastNed Retail, the members ofthe Board of Management declare that they will comply with the Code in all of the above-mentioned cases. In the event of a conflict of interest, the member of the Board of Management involved will report that conflict of interest to the chairman of the Supervisory Board. The member in question will not participate in any discussions and decision making where he has a conflict of interest. In addition, the usual industry sector conditions will apply to transactions where there is a conflict of interest.
VastNed Retail has not made loans to any members of its Board of Management, nor have any members of the Board of Management made loans to VastNed Retail.
None ofthe members ofthe Supervisory Board of VastNed Retail is also on the Supervisory Board of VastNed Offices/Industrial. The chairman and the vice-chairman are also members ofthe Supervisory Board of VastNed Management. This system means the members ofthe Supervisory Board have a considerable degree of independence. The Supervisory Board has four members.
Members ofthe Supervisory Board report any material conflictsof interest to the chairman ofthe Supervisory Board. In line with the corporate governance pursued by VastNed Retail, the members of the Supervisory Board declare that they will comply with the Code in such cases. Any member with a conflict of interests will refrain from participating in discussions and decision making regarding that matter. In addition, the usual industry sector conditions will apply to transactions where there is a conflict of interest. Decisions to enter into transactions with controlling shareholders, defined here as shareholders holding more than 10% of the share capital in issue, must be approved by the Supervisory Board and are subject to the usual industry sector conditions. At present, VastNed Retail does not have a delegated Supervisory Board member. The Supervisory Board will act in accordance with the best practice provisions III.6.6 and III.6.7 where applicable.
VastNed Retail has not made loans to any member of the Supervisory Board, nor has any member of the Supervisory Board made loans to VastNed Retail.
The regular General Meeting of Shareholders must be held within six months of the close of the financial year. The General Meeting of Shareholders is called in the manner laid down in the legislation and regulations applicable to VastNed Retail. One or more shareholders that together represent at least 10% of the share capital in issue can ask the Board of Management to call a General Meeting of Shareholders. One or more shareholders that together represent at least 1 % of the share capital in issue, or alternatively hold shares worth at least € 50 million, can ask for items to be placed on the agenda of the General Meeting of Shareholders, provided they do so at least 60 days before the meeting.
In the General Meeting of Shareholders of VastNed Retail an explanation is given of the strategy and course of business, among other things. Furthermore, the General Meeting of Shareholders is asked to give its approval on matters as defined by law and the articles of association.
Generally, the following subjects are discussed at the General Meeting of Shareholders (without being subjected to approval): the minutes of the previous General Meeting of Shareholders, the report by the Board of Management on the most recent financial year, the dividend and reservation policy, corporate governance and the remuneration report.
The General Meeting of Shareholders is asked to vote on the following subjects: the adoption of the financial statements for the most recent financial year, the determination of the dividend/final dividend for the most recent financial year, major changes to the strategy and material changes to the corporate governance structure, discharging the members of the Board of Management for their management during the most recent financial year, discharging the Supervisory Board members for their supervision of the Board of Management during the most recent financial year and the appointment or reappointment of members of the Company's Supervisory Board or Board of Management.
Every share gives the right to one vote in the General Meeting of Shareholders. No vote can be cast for shares held by VastNed Retail itself or by or on behalf of a subsidiary unless those shares are encumbered by usufruct or pledge.
The requirement for most resolutions by the General Meeting of Shareholders is an absolute majority (half of the votes cast plus 1). There are a number of specific resolutions where the Priority Shareholder usually submits a proposal.
If a member of the Board of Management or Supervisory Board is to be appointed or reappointed, the Priority Shareholder makes a binding nomination such that there is a choice between at least two individuals. The General Meeting of Shareholders can remove the binding nature if the condition of an absolute majority of the votes is met, with the votes cast in favour representing at least one third of the issued capital. If there is an absolute majority but less than one third ofthe issued capital is represented, a new General Meeting of Shareholders will be called. The binding nature ofthe nomination can be removed in that meeting by an absolute majority ofthe votes cast without there being a quorum requirement. The same rules apply to the dismissal and suspension of members of the Board of Management or Supervisory Board. For more information, please refer to articles 14 and 18 of the articles of association (www.vostned.n/).
Furthermore, the Priority Shareholder has rights with regard to the following subjects: proposals for changes to the articles of association, for the liquidation of the Company or to file a petition for liquidation or suspension of payments. If the request is made by the Priority Shareholder, such proposals can be adopted by the General Meeting of Shareholders if passed by an absolute majority of the votes. If such proposals are not made by the Priority Shareholder, a supermajority requirement applies (more than two-thirds of the votes cast with a quorum of three quarters of the issued capital). For more information, please refer to article 25 of the articles of association (www.vostned.n/).
The Board of Management and the Supervisory Board supply the General Meeting of Shareholders with all information required unless there is a substantial interest in not doing so. VastNed Retail announces the meetings in line with the stipulations in the applicable legislation and regulations. The agenda and shareholders' circular can be obtained at the offices of VastNed Retail in Rotterdam, and via www.vostned.n/. These publications include among other things the registration date for exercising voting rights attached to shares. The minutes of the General Meeting of Shareholders will be made available after the meeting in accordance with best practice provision IV.3.8.
VastNed Retail's authorised share capital amounts to € 375,000.000. It is made up of 10 priority shares and 74,999,990 ordinary shares, all with a nominal value of € 5. As at 31 December 2010, a total of 18,495,220 ordinary shares and 10 priority shares were in issue.
VastNed Retail is a public limited liability company with the status of an investment company with variable capital pursuant to 2:76 sub a of the Netherlands Civil Code. The decision to issue shares is taken by the Board of Management, taking into account the limits and conditions set by the Supervisory Board.
The Board of Management can also acquire shares in its own capital at times and under conditions determined by the Board of Management, taking into account the limits and conditions set by the Supervisory Board, provided that the Company's capital minus the shares it holds itself amounts to at least 10% of the authorised capital.
The Stichting Prioriteit VastNed Retail holds all 10 priority shares. The members of the Supervisory Board and the members of the Board of Management of VastNed Management sit on the board of the Stichting Prioriteit VastNed Retail.
Financial reports are drawn up in accordance with internal procedures. The Board of Management is responsible for ensuring that the financial reports are accurate, complete and produced on time. The external auditor is also involved in the content and publication of the semi-annual figures, the financial statements and the associated press releases. The external auditor attends the General Meeting of Shareholders and may be asked to comment on his opinion concerning the fairness of the financial statements. The external auditor attends at the very least the meetings of the Supervisory Board and/or the audit committee in which the financial statements are discussed.
VastNed Retail has drawn up a code of conduct that applies to all employees, including the Board of Management. A whistleblower's code also applies that allows employees and members of the Board of Management to report abuses within the Company without endangering their own employment relationship. The texts of these codes have been published on www.vostned.n/.
Under Article 10 of the Takeover Directive. VastNed Retail should, among other things, include information in its annual report concerning the following: the capital structure, significant participations in VastNed Retail where there is a disclosure obligation under 5.3 of the Act on Financial Supervision, limitations to voting rights and the issue of depositary receipts for shares with the concurrence of the Company, stipulations in the articles of association regarding the appointment and dismissal of members of VastNed Retail's Board of Management or Supervisory Board, the Board of Management's powers (in particular regarding the issue of shares), any significant agreements in which VastNed Retail is a party and which take effect, are altered or terminated upon a change of control following a takeover bid, and any agreements between VastNed Retail and any members of the Board of Management or employees that arrange for a payment in the event of employment being terminated due to a takeover bid.
The information provided under Article 10 of the Takeover Directive is included in this section and elsewhere in this annual report.
VastNed Retail and VastNed Offices/ Industrial ('the funds') have a single Managing Director under the Articles of Association, VastNed Management, a joint subsidiary of both funds and the management company of both VastNed Retail and VastNed Offices/Industrial. This remuneration report outlines the remuneration ofthe Managing Directors of VastNed Management ('the Board of Management'), the private individuals who actually manage the funds. All directors work for both funds. VastNed Management's costs are passed on to the individual funds based on the source ofthe costs in accordance with a cost allocation agreement.
VastNed Management's remuneration policy was approved by the shareholders of both funds in the General Meetings of Shareholders of VastNed Retail and VastNed Offices/Industrial on 6 April 2004 and is based on the following principles:
Based on these principles, the following criteria have been formulated for the various elements in the remuneration policy for the next few years:
The bonus to be awarded is divided into two parts: the direct investment result-related bonus (75%) and the personal bonus (25%). The direct investment investment result-related bonus creates alignment between Managing Directors and shareholders both in the short term and in the long term, since an increase in the direct investment result per share benefits both the Directors and the shareholders. The conditional nature of the direct investment result-related bonus safeguards the long-term interests and the risk profile (best practice provision 11.2.12). The personal bonus promotes the realisation of key targets that do not necessarily lead to an increase in the direct investment result per share in the short term. The bonuses are not part ofthe pensionable income. Various scenarios are assessed prior to the formulation of the remuneration policy. This means that no bonus is paid if none of the targets are achieved, whereas, if all of the targets for both funds are achieved, a maximum of € 200,000 is paid to the CEO and € 100,000 is paid to every other member of the Board of Management. This maximum is less than 50% of the fixed salary for all members of the Board of Management.
This part of the bonus, with a maximum value set at € 150,000 and € 75,000 respectively, is directly related to the development in the direct investment result per share, as evidenced by the financial statements approved by the external auditor and corrected for subsequent changes to the funds' accounting system (like-for-like).
The bonus system provides for a bonus of € 5,000 for the CEO and € 2,500 for the other members of the Board of Management for every increase of 10 basis points in the direct investment result per share above the weighted inflation in the countries in which the funds invest (calculated using the average value of properties in the respective countries). The direct investment result-related bonus has a maximum per fund of € 75.000 for the CEO and € 37,500 for the other members of the Board of Management. A percentage decrease in one fund's direct investment result is not set off against any percentage increase there might be in the other fund's result. The costs of the direct investment result-related bonus will be charged to the fund to which the percentage increase in question refers.
The direct investment result-related bonus is awarded conditionally in the form of shares in the relevant fund at the first ex-dividend share price after the Annual General Meeting of Shareholders. The award is made on a condition precedent, whereby the award becomes unconditional after two years provided that the direct investment result per share in the previous financial year is not lower than the direct investment result per share for the financial year preceding the conditional grant of the bonus.
Once a member of the Board of Management becomes unconditionally entitled to the shares, he is allowed to sell a maximum of 50% of the shares awarded unconditionally. The proceeds may be used for settling the wage withholding tax which becomes payable on the value of the shares that are then awarded unconditionally. The other shares must then be held for a period of at least three years or until the end of the employment of the Director in question, if earlier.
The shares are entitled to dividend from the moment when they are awarded conditionally. The cash equivalent of the dividends on the shares awarded will not be paid out until the award has become unconditional.
A personal bonus for both funds not exceeding € 50,000 for the CEO and € 25,000 for each of the other members of the Board of Management is awarded on the basis of an assessment by VastNed Management's Supervisory Board of the degree to which the Director in question achieved pre-defined qualitative and/or quantitative targets during that financial year. This bonus is paid out in cash. The costs of this bonus are shared by the two funds in accordance with the source ofthe costs.
The pension plans in operation are non-contributory. Mr Van Gerrevink's pension is based on a final-pay formula. the pension plan of Mr De Witte is based on the career-average system and Mr De Groot's pension plan is a defined contribution plan. Mr Van Gerrevink's expected retirement age is 63. while the retirement age for Mr De Witte and Mr De Groot is 65.
The customary arrangements for company cars and reimbursement of business expenses are in place for all directors.
The employment contracts with the members of the Board of Management are concluded for a determinate period of time and the maximum severance payment is limited to no more than one year's fixed salary. However, the employment contracts with two of the three current members of the Board of Management (Mr Van Cerrevink and Mr De Witte) were concluded before the Code came into effect. These employment contracts were concluded for an indefinite period of time and contain a severance payment arrangement with a minimum compensation amount in the case of termination by VastNed Management that exceeds the compensation of one year's fixed salary as referred to in the Code. These agreed upon termination arrangements were necessary at the time to persuade the members of the Board of Management to give up their positions elsewhere and take up employment with VastNed Management. These current arrangements will be honoured. The employment contract concluded by VastNed Management with Mr De Groot in 2010 is fully in line with the Code. VastNed Management intends to apply the provisions of the Code in this respect to any employment contracts concluded in the future as well. If termination of the employment contract is the consequence of a takeover or merger, or happens within a certain period of a takeover or merger taking place, a higher minimum severance payment may apply in certain cases.
Mr Van Cerrevink is entitled to compensation of at least € 600,000 in the event of dismissal by the General Meeting of Shareholders of VastNed Management.
If the work for one of the funds is terminated due to a merger or takeover of one of the funds, compensation of at least € 400,000 per fund will be paid. If a share price is realised for shareholders that exceeds 105% of the net asset value, an additional bonus is awarded of 2% ofthe excess per share, multiplied by the number of shares in issue. This additional bonus has a maximum of €750,000 per fund. These arrangements were negotiated when the employment contract was concluded. The arrangements in the event of a merger or take over are no longer applicable, as agreed with Mr Van Cerrevink.
In the event of dismissal by the General Meeting of Shareholders of VastNed Management, Mr De Witte is entitled to compensation to be determined in line with the method used in the Dutch subdistrict court formula, taking into account 12 years of service at the time of appointment. This arrangement was negotiated when the employment contract was concluded. If the employment contract is terminated as a result of a merger or take-over of one of the funds on the initiative of VastNed Management, compensation is paid of at least 15 months salary.
The term of the employment contract concluded with Mr De Groot is four years. If the employment contract is terminated as a result of a merger or take-over of one of the funds on the initiative of VastNed Management, compensation is paid of at most 12 months salary. The employment contract concluded with Mr De Groot complies with the Code.
The terms of notice for the members of the Board of Management are as follows:
| Employer | Employee | |
|---|---|---|
| Mr R.A. van Cerrevink | 6 months | 3 months |
| Mr T.M.de Witte | 6 months | 3 months |
| MrT.T.J.de Groot | 6 months | 3 months |
relate to a period of four months.
Their income in 2010 is shown below (the personal bonus is the payment in cash made in 2010 as a bonus for the financial year 2009).
| Fixed salary (excl. social |
||||
|---|---|---|---|---|
| Years of | security | Pensionable | Personal | |
| service | contributions) | part | bonus | |
| Mr R.A. van Cerrevink | 9 | 465,000 | 348.000 | 8.750 |
| Mr T.M.de Witte | 8 | 255,000 | 215,000 | 8,125 |
| MrT.T.J.de Groot2 ) |
<1 | 100.000 | 83,333 | n/a |
| Total | 820.000 | 646.333 | 16.875!) | |
1 VastNed Retail share VastNed Offices/Industrial share 2 Mr De Groot commenced employment on 1 September 2010. The amounts specified consequently € 3.750 € 13,125
In 2010, VastNed Management paid the following pension contributions on behalf of its Directors:
Mr Van Cerrevink € 62,050, Mr De Witte € 32,449 and Mr De Groot € 14,167.
VastNed Retail will not be paying the direct investment result-related bonus for the financial year 2010, since the direct investment result per share was € 3.68 in 2010. This represents a decrease of 8.7% compared with 2009, which is 10.2 percent points below the average weighted inflation of 1.6% in 2010 in the countries where VastNed Retail has operations.
No conditionally awarded shares were awarded as a direct investment result-related bonus in 2009. Consequently, no shares will become unconditional in 2011 or will be taken back.
In 2010,1,596 and 798 shares have been granted conditionally to Mr Van Cerrevink and Mr De Witte respectively as direct investment result-related bonus. In 2012, these will be granted unconditionally provided that the direct investment result in 2011 amounts to at least € 4.03 per share.
The personal bonus for 2010 to be paid to Mr Van Cerrevink and Mr De Witte amounts to nil and € 3,750 respectively as the predefined targets for VastNed Retail concerning occupancy rates, acquisitions, the term of loans and sustainability were partially achieved.
The present remuneration policy, adopted in 2004, will not be changed.
Mr Van Gerrevink's fixed salary and pensionable component will remain unchanged at € 465,000 and €348,000 respectively.
Mr De Witte's fixed salary will be raised to € 265,000. The pensionable component will be raised to € 225,000.
Mr De Groot's fixed salary will be raised to € 310,000. The pensionable component will remain unchanged at €250,000.
An overview is given below of the share ownership of the statutory Board of Management as at 31 December 2010.
| R.A. van Cerrevink | T.M.de Witte | T.T.I, de Groot | |
|---|---|---|---|
| Number of shares as at 1 January 2010 | 2.405 | 1,467 | |
| Movements | 1,000 | ||
| Number of shares as at 31 December 2010 | 2,405 | 1,467 | 1.000 |
The risk management and control system at VastNed Retail is based on the COSO (Committee of Sponsoring Organizations of the Treadway Commission) Risk Management framework. It aims to guarantee with a reasonable degree of certainty that the risks the company is exposed to have been adequately identified and are being managed within a limited risk profile. The following summary shows the key categories of risks that apply to VastNed Retail. The potential impact of each ofthe risk categories is indicated, along with the way in which VastNed Retail tries to manage the risk.
DESCRIPTION OF RISK CATEGORY
POTENTIAt IMPACT CONTROt MEASURES
Impact of external factors as a consequence of investment and financial policy choices.
A strategic choice has been made for:
Decisions on strategy and changes in strategy are first approved by the Supervisory Board before being implemented.
OF RISK CATEGORY
The impact of incorrect, incomplete or late provision of information on decisionmaking (internal or by external parties, including shareholders, banks and regulators).
A sound system of internal control measures and administrative and organisational measures has been implemented and laid down in various places such as the Administrative Organisation manual, the code of conduct, the whistleblower code and the rules of procedure ofth e Board of Management. They provide important checks and balances with regard to financial reports, for example:
Risks arising from daily transactions and (external) events.
/nvestment ond divestment risks Investment or disposal analysis performed incorrectly.
Careful acquisition and divestment procedures, consisting of:
Supervisory Board).
Leasing and debtor risks The risk that a property cannot be let at the
quality of the tenant.
anticipated rent (resulting in a vacant property) or the rent cannot be collected, due to its nature and location and/or the
screening tenants when concluding leases;
Benchmarking costs against those of other funds.
interim evaluations of the financial positions and payment behaviour of tenants by holding regular meetings with them and by consulting external sources on this subject, and;
Cost control risks
The risk of unexpected increases in operating expenses and general expenses, and of having to make unanticipated further investments.
Pipeline risks
Risks associated with acquired investment properties in pipeline.
Incorrect estimation of the
Drop in rental income and rise in service charge expenses that cannot be passed on due to vacant
properties;
Decrease in property values due to vacant properties; Write-off of overdue receivables, and; Lower (than expected) direct and indirect investment results.
The committed investment properties in pipeline amounted to € 85.6 million at year-end 2010;
risk-return profile, and; - Budgeting procedures and maintenance forecasts; - authorisation procedures for entering into maintenance and investment commitments; - Regular reporting (on realisation-vs.-budget analyses), and;
OF RISK CATEGORY
Legal and tax risks Risks associated with amendments to tax law and corporate law, and risks arising from the incorrect assessment of contractual stipulations or tax exposure.
Risks associated with malfunctions or security issues related to the internal IT infrastructure.
Being unable to issue internal or external reports correctly or on time; Loss of relevant information;
Unauthorised access to information by third parties, and; Reputation damage.
Reputation damage, and; Lower direct and indirect investment results.
Internal procedures, comprising:
Internal procedures aimed at:
The IT network between the different countries is centralised in Rotterdam, with the individual countries connected to the company Wide Area Network over fixed lines hired from professional network providers.
Financing and Refinancing risks The risk that insufficient equity and (long-term) loan capital can be raised, or only on unfavourable terms, or of agreed bank covenants not being met.
| DESCRIPTION OF RISK CATEGORY |
POTENTIAL IMPACT | CONTROL MEASURES |
|---|---|---|
| Liquidity risk The risk that insufficient resources will be available for day-to-day payment obligations. |
Reputation damage; Extra financing costs, and; Lower direct investment result |
Procedures aimed at reducing operational risks that may result in loss of cash flow (see above); Attracting sufficient credit facilities, aimed at ensuring sufficient borrowing capacity. At year-end 2010, unused capacity was €120.3 million; Drawing up daily cash-flow prognoses, and; Internal monitoring of the credit facilities and conditions, based on periodic internal financial reports. |
| Interest rate risk | ||
| Risks resulting from interest rate fluctuations. |
Rising financing costs, and; Lower direct investment results. |
In principle, no more than one third of the loan portfolio has variable interest rates; Rate fixing by taking out interest rate derivatives contracts with national and international banks; Efforts are made to obtain an even spread of interest rate review dates; Efforts are made to achieve a typical interest-rate term of at least 3.0 years for the long-term loan portfolio. At year-end 2010, this term was 4.7 years; Internal monitoring of interest-rate risks based on regular internal financial reports, and; Regular board meetings on the subject and discussion of these reports with the audit committee and the Supervisory Board. |
| Exchange-rate risk | ||
| Risks resulting from exchange rate fluctuations. |
Falling income, and; Lower direct and indirect investment results. |
Investing primarily in the euro zone; No more than 10% of the total invested capital is invested in Turkey. The amount invested was € 84.5 million at year-end 2010, and; Concluding lease contracts in euros or US dollars and financing part or all of the property in the same currency. |
| COMPLIANCE RISKS | ||
| Risks associated with non compliance or inadequate compliance with legislation and regulations, or risks associated with not acting with integrity. |
Reputation damage; Claims and legal procedures, and; Lower direct investment results. |
Internal procedures and training aimed at keeping knowledge of legislation and regulations up to date; Internal code of conduct and whistleblower code; Compliance with the code of conduct is discussed with employees at least once a year; Procedures aimed at hiring staff who will act with integrity (including references, etc.), and; Having the country managers sign an internal Letter of Representation at least once a year. |
As indicated above, VastNed Retail devotes a great deal of attention to risk management. Only a relatively small number of people work at VastNed Retail who, moreover, are spread across the various country organisations. Activities in the areas of financing, cash management, tax, legal affairs, IT, research, budgeting and budgetary control are carried out at group level in Rotterdam, which also benefits the local country organisations. VastNed Retail does not have a separate internal audit department. In view of the limited complexity of the day-to-day transactions and the short internal communication lines, the absence of a separate internal audit department is deemed to be acceptable from the perspective of risk management.
| t g 3 -M 'J o » o U U J |
£ g. 2 Q. O g. |
c o '3 u m O |
c 0 4 -, u 3 s c C O u 03 O O c |
u Q. O _o ^^ JD •M 4-1 |
£ s "5 01 E |
r 01 E 4-< O. 03 O 01 JO E 2 |
CT) C 2 fO a O L - 01 m U E OJ CL Z |
_ O s g 3 x II |
|---|---|---|---|---|---|---|---|---|
| THE NETHERLANDS | ||||||||
| ALKMAAR | ||||||||
| Laat 165-167 | Shop | 1990 | 1906 | 345 | 1 | - | 93 | |
| Payglop 6 | Shop | 1988 | 1900 | 45 | 1 | - | 22 | |
| Payglop 14 | Shop | 1994 | 1930 | 143 | 1 | - | 42 | |
| ALMELO | ||||||||
| Grotestraat 32 / Hofvan Gülick 10 | Shop | 1993 | 1920 | 210 | 1 | 1 | 44 | |
| Grotestraat 35a-37 | Shop | 1994 | 1900 | 150 | 1 | 1 | 51 | |
| Grotestraat 36 | Shop | 1996 | 1920 | 430 | 1 | - | 82 | |
| Crotestraat 83-85 | Shop | 1994 | 1850 | 255 | 1 | - | 129 | |
| Grotestraat 97a / Koornmarkt 3-5 and 9-11 / | ||||||||
| Werfstraat 1 | Shop | 1993 | 1920 | 1,132 | 5 | - | 201 | |
| AMERSFOORT | ||||||||
| Langestraat 8 | Shop | 1990 | 1900 | 409 | - | 94 | ||
| Utrechtsestraat 13 / Hellestraat 3 | Shop | 2008 | 1900 | 97 | 1 | 67 | ||
| AMSTERDAM | ||||||||
| Buikslotermeerplein 88-901 ) |
Shopping centre | 1990 | 1968 | 388 | - | 117 | ||
| Buikslotermeerplein 1231 ) |
Shopping centre | 1993 | 1968 | 9,293 | - | - | 1,007 | |
| Buikslotermeerplein 2551 ) |
Shopping centre | 2007 | 1972 | 307 | - | 108 | ||
| Ferdinand Bolstraat 65 | Shop | 1989 | 1883 | 113 | 3 | 53 | ||
| Ferdinand Bolstraat 79 | Shop | 1987 | 1905 | 85 | 3 | 57 | ||
| Ferdinand Bolstraat 81 | Shop | 1989 | 1884 | 82 | 3 | 56 | ||
| Ferdinand Bolstraat 88 | Shop | 1987 | 1883 | 85 | 3 | 63 | ||
| Ferdinand Bolstraat 92 / G, Flinckstraat 118 | Shop | 1987 | 1882 | 81 | 6 | 69 | ||
| Ferdinand Bolstraat 95-97 / | ||||||||
| e Jan v.d. Heydenstraat 88a-90 1 |
Shop | 1987 | 1892 | 194 | 9 | 117 | ||
| Ferdinand Bolstraat 101 | Shop | 1989 | 1892 | 118 | 3 | 45 | ||
| Ferdinand Bolstraat 109 | Shop | 1989 | 1882 | 76 | 3 | 51 | ||
| Ferdinand Bolstraat 120 / | ||||||||
| e Jan v.d. Heydenstraat 88 1 |
Shop | 1993 | 1893 | 130 | 6 | 68 | ||
| Ferdinand Bolstraat 122 | Shop | 1987 | 1893 | 95 | 3 | 61 | ||
| Ferdinand Bolstraat 124 | Shop | 1987 | 1893 | 75 | 3 | 57 | ||
| Ferdinand Bolstraat 126 | Shop | 198 9 | 189 3 | 80 | 3 | 5 4 | ||
| Heiligeweg 47 | Shop | 1989 | 1899 | 60 | - | 96 | ||
| JanEvertsenstraat 100 | Shop | 1988 | 1925 | 144 | 3 | 43 | ||
| JanEvertsenstraatlOS | Shop | 1987 | 1925 | 107 | 3 | 44 | ||
| Jan Evertsenstraat 108 | Shop | 1987 | 1940 | 95 | 3 | 51 | ||
| Kalverstraat 9 | Shop | 1990 | 1900 | 253 | - - |
114 | ||
| Kalverstraat 162-164 Kalverstraat 182 |
Shop Shop |
1988 1987 |
1800 1900 |
328 95 |
- | 293 122 |
||
| Kalverstraat 208 | Shop | 1991 | 1850 | 160 | - | 116 | ||
| Kinkerstraat 1151 ) |
Shop | 1994 | 1988 | 97 | - | 36 | ||
| Leidsestraat 5 | Shop | 1990 | 1905 | 380 | - | 95 | ||
| Leidsestraat 64-66 / Kerkstraat 44 | Shop | 1986 | 1912 | 790 | - | 224 | ||
| Paleisstraat 21 | Shop | 1990 | 1876 | 310 | - | 51 | ||
| Reguliersbreestraat 9 / Amstel 8 | Shop | 1987 | 1905 | 277 | 2 | 3 | 117 |
| Location Country City |
Type of property | Year of acquisition | Year of construction renovation |
Lettable floor space (sqm) |
Number of tenants | Number of apartments | Number of parking spaces |
income $(x \in 1,000)$ Theoretical rental |
|---|---|---|---|---|---|---|---|---|
| Rembrandtplein 71) | Shop | 2007 | 1897 | 285 | $\mathbf{1}$ | 3 | - | 211 |
| Van Baerlestraat 86 | Shop | 1994 | 1800 | 90 | $\mathbf{1}$ | $\overline{2}$ | 72 | |
| Van Baerlestraat 108-110 APELDOORN |
Shop | 1990 | 1800 | 265 | $\overline{2}$ | 3 | $\overline{a}$ | 123 |
| Deventerstraat 5 | Shop | 1990 | 1900 | 363 | 2 | $\overline{2}$ | $\overline{\phantom{000000000000000000000000000000000000$ | 114 |
| Deventerstraat 6 | Shop | 1990 | 1930 | 70 | 1 | - | 31 | |
| Deventerstraat 14 and 14b ARNHEM |
Shop | 1994 | 1900 | 295 | $\overline{2}$ | 3 | 96 | |
| Bakkerstraat 3a and 4 / Wielakkerstraat 8 | Shop | 1990 | 1600 | 188 | 2 | 1 | - | 114 |
| Bakkerstraat 6 | Shop | 1994 | 1950 | 574 | $\mathbf{1}$ | $\overline{ }$ | - | 146 |
| Koningstraat 12-13 / Beekstraat 105-107 and 108 | Shop | 1988 | 1890 | 1,052 | 4 | 3 | - | 289 |
| Rijnstraat 23 / Varkensstraat 34 | Shop | 1990 | 1900 | 447 | $\overline{2}$ | 4 | - | 114 |
| Vijzelstraat 24 ASSEN |
Shop | 1994 | 1800 | 161 | $\mathbf{1}$ | $\overline{\phantom{0}}$ | 93 | |
| Gedempte Singel 11-13 / Mulderstraat 8 BEMMEL |
Shop | 1995 | 1952 | 894 | 3 | 98 | ||
| Dorpsstraat 31, 31a-e / Kloosterplaats 1 / | ||||||||
| Dr. Poellstraat 1 BERGEN OP ZOOM |
Shop | 1998 | 1992 | 1,815 | 5 | $\overline{2}$ | 4 | 245 |
| Wouwsestraat 48 BEVERWIJK |
Shop | 1994 | 1900 | 80 | $\mathbf{1}$ | 48 | ||
| Nieuwstraat 9-11 / Breestraat 65 BILTHOVEN |
Shop | 1989 | 1910 | 2,630 | 4 | 339 | ||
| Julianalaan 53 BORCULO |
Shop | 1997 | 1930 | 367 | $\mathbf{1}$ | - | 37 | |
| Lichtenhorst 7-9 BOXMEER |
Shop | 2007 | 2007 | 2,350 | $\overline{2}$ | ۰ | 281 | |
| Hoogkoorpassage 14-18 and 22 | Shop | 1990 | 1989 | 566 × |
5 | 78 | ||
| Steenstraat 110 / D'n entrepot BOXTEL |
Shop | 1997 | 1992 | 135 | $\mathbf{1}$ | 47 | ||
| Rechterstraat 42-44 | Shop | 1997 | 1940 | 877 | $\mathbf{1}$ | - | 105 | |
| Stationstraat 18-20 | Shop | 1997 | 1920 | 750 | $\mathbf{1}$ | $\overline{\phantom{000000000000000000000000000000000000$ | 83 | |
| BREDA | ||||||||
| Eindstraat 14-16 | Shop | 1988 | 1924 | 260 | $\mathbf{1}$ | $\overline{\phantom{0}}$ | 208 | |
| Ginnekenstraat 3 | Shop | 1994 | 1985 | 88 | $\mathbf{1}$ | $\qquad \qquad -$ | 82 | |
| Ginnekenstraat 19 | Shop | 1993 | 1980 | 150 | $\mathbf{1}$ | $\overline{a}$ | $\qquad \qquad -$ | 120 |
| Ginnekenstraat 80-80a | Shop | 1998 | 1905 | 165 | $\mathbf{1}$ | 5 | $\overline{\phantom{0}}$ | 109 |
| Grote Markt 29 / Korte Brugstraat 2 | Shop | 1991 | 1953 | 102 | $\mathbf{1}$ | $\overline{\phantom{000000000000000000000000000000000000$ | 88 | |
| Karrestraat 25 | Shop | 1994 | 1920 | 268 | 1 | $\overline{2}$ | $\qquad \qquad \blacksquare$ | 134 |
| Ridderstraat 19 | Shop | 1994 | 1800 | 225 | $\mathbf{1}$ | $\qquad \qquad -$ | 60 | |
| Torenstraat 2 / Korte Brugstraat 14 | Shop | 1992 | 1953 | 90 | $\mathbf{1}$ | $\overline{\phantom{0}}$ | 85 | |
| Veemarktstraat 30 Veemarktstraat 32 |
Shop Shop |
1991 1992 |
1920 1800 |
555 70 |
$\mathbf{1}$ $\mathbf{1}$ |
$\overline{2}$ | $\qquad \qquad -$ $\qquad \qquad -$ |
79 40 |
| BRIELLE De Reede 36-501) |
Shopping centre | 1993 | 1977 | 1,610 | $\overline{7}$ | $\overbrace{\phantom{1232211}}$ | 252 | |
| BRUNSSUM | 94 | |||||||
| Kerkstraat 45 / Schiffelerstraat 1 | Shop | 1997 | 1970 | 620 | $\overline{2}$ | $\overline{\phantom{0}}$ | $\qquad \qquad -$ | |
| BUSSUM Kerkstraat 1 / Brinklaan |
Shop | 1994 | 1974 | 1,007 | $\overline{2}$ | $\qquad \qquad -$ | 127 | |
| Nassaulaan 12 / Nassaustraat 1a and 1g | Shop | 1994 | 1920 | 295 | $\mathbf{1}$ | $\overline{2}$ | $\overline{\phantom{0}}$ | 84 |
| Nassaustraat 12-16 | Shop | 1994 | 1900 | 181 | $\overline{2}$ | 1 | $\qquad \qquad -$ | 84 |
| Veerstraat 11 and 11d | Shop | 1990 | 1900 | 360 | 2 | $\qquad \qquad -$ | 108 |
| Location Country City |
4-1 OJ Q. E o. O 03 Q. |
c O ]p — '. 'D CT u ro 1 4 - o ro |
Year of construction, renovation |
Lettable floor space (sqm) |
i/i 4-1 C ro C 'S 03 E 3 Z |
a 03 E t ro Q. ro 14- o 03 - D E 3 Z |
CTl IS ro a. 03 I/) OJ u E 01 Q. Z i/i |
€ 1,000) Theoretical rental income (x |
|---|---|---|---|---|---|---|---|---|
| CAPELLEA/DIJSSEL | ||||||||
| Lylantse Baan 7 | Retail warehouse | 1990 | 1985 | 13,336 | 3 | - | 150 | 925 |
| De Wingerd 247-267 COEVORDE N |
Shopping centre | 1993 | 1969 | 2,043 | 5 | 1 | - | 264 |
| Friesestraat 14 / Weeshuisstraat 9 CULEMBOR C |
Shop | 1997 | 1950 | 203 | 1 | 3 | - | 55 |
| Everwijnstraat 6-14 / Markt 53 DALFSE N |
Shop | 1999 | 1989 | 493 | 6 | - | - | 104 |
| Van Bloemendalstraat 6-8 / Wilhelminastraat 5 DEDEMSVAAR T |
Shop | 1997 | 1991 | 434 | 3 | 1 | - | 63 |
| Julianastraat 13-19 DELFT |
Shop | 1997 | 1922 | 1,190 | 4 | - | - | 146 |
| Hippolytusbuurt 1 / Nieuwstraat | Shop | 1997 | 1700 | 750 | 1 | - | - | 109 |
| Markt 23 | Shop | 1990 | 1906 | 54 | 1 | 3 | - | 49 |
| Oude Langendijk 2 | Shop | 1996 | 1906 | 120 | 1 | - | - | 38 |
| OudeLangendijkll | Shop | 1987 | 1906 | 150 | 1 | - | - | 55 |
| Wijnhaven 9 / Oude Delft 92 DEVENTE R |
Shop | 1986 | 1700 | 184 | 1 | - | - | 39 |
| Brink 95 / Spijkerboorsteeg 33 and 37 | Shop | 1995 | 1850 | 127 | 2 | 2 | - | 56 |
| Lange Bisschopstraat 11-15 | Shop | 1993 | 1800 | 310 | 2 | 1 | - | 82 |
| Lange Bisschopstraat 34 | Shop | 1991 | 1900 | 278 | 1 | - | - | 48 |
| Lange Bisschopstraat 50 | Shop | 1993 | 1800 | 210 | 1 | 1 | - | 109 |
| DIDA M Hoofdstraat 5-7 |
Shop | 1997 | 1960 | 520 | 1 | 1 | - | 52 |
| Oranjestraat 6-10 | Shop | 1997 | 1978 | 520 | 1 | 1 | - | 50 |
| DOETINCHE M Dr. Huber Noodstraat 2 |
Shop | 1997 | 1968 | 1,840 | 4 | - | - | 297 |
| Korte Heezenstraat 6 / Heezenpoort 13-15 and 21 | Shop | 1994 | 1985 | 310 | 4 | - | - | 88 |
| Nieuwstad 57-59 | Shop | 1988 | 1988 | 1,686 | 2 | - | - | 149 |
| DOORWERT H | ||||||||
| Mozartlaan 52-66 / van der Molenallee 107-125 DORDRECH T |
Shopping centre | 1997 | 2007 | 3.395 | 12 | - | - | 464 |
| Voorstraat 262 | Shop | 1996 | 1800 | 175 | 1 | 4 | - | 119 |
| DRACHTE N Zuidkade 2 |
Shop | 1995 | 1900 | 150 | 1 | 1 | - | 50 |
| EERBEEK | ||||||||
| Stuyvenburchstraat 44 Stuyvenburchstraat 141 EINDHOVEN |
Shop Shop |
1997 199 8 |
1965 195 0 |
350 4 2 0 |
2 1 |
2 2 |
- - |
78 5 6 |
| Orionstraat 137-159 | Shopping centre | 1993 | 1973 | 3,102 | 11 | - | - | 480 |
| Rechtestraat 25 | Shop | 1992 | 1930 | 100 | 1 | - | - | 120 |
| Rechtestraat 44-48 | Shop | 1988 | 1966 | 3.273 | 2 | - | - | 582 |
| Shopping centre 'Woensel' 113 | Shopping centre | 1994 | 1970 | 115 | 1 | - | - | 79 |
| Woenselse Markt 19-21 ELST |
Shop | 1994 | 1979 | 810 | 1 | 4 | - | 144 |
| Kleine Molenstraat 6 | Shop | 1997 | 1951 | 572 | 2 | - | - | 83 |
| EMMELOOR D | ||||||||
| Lange Nering 65 ENSCHED E |
Shop | 1993 | 1960 | 275 | 1 | 1 | - | 64 |
| Kalanderstraat 6 | Shop | 1993 | 1950 | 124 | 1 | - | - | 94 |
| Langestraat 9-17a / Achter het Hofje 2 | Shop | 198 7 | 193 0 | 2,703 | 9 | 1 | - | 378 |
| Raadhuisstraat 9 | Shop | 1990 | 1954 | 289 | 1 | - | - | 59 |
| Location Country City |
Type of property | Year of acquisition | Year of construction renovation |
Lettable floor space (sqm) |
Number of tenants | Number of apartments | Number of parking spaces |
income $(x \in 1,000)$ Theoretical rental |
|---|---|---|---|---|---|---|---|---|
| GOES | ||||||||
| Lange Kerkstraat 9 | Shop | 1994 | 1920 | 65 | $\mathbf{1}$ | 34 | ||
| GOOR | ||||||||
| Grotestraat 57-59 and 63 | Shop | 1994 | 1910 | 859 | 2 | 1 | - | 63 |
| GOUDA | ||||||||
| Hoogstraat 5 | Shop | 1988 | 1900 | 190 | $\mathbf{1}$ | 45 | ||
| Kleiweg 77-95 | Shop | 1994 | 1900 | 1,200 | 4 | 5 | 465 | |
| Kleiweg 103 / Regentesseplantsoen | Shop | 1990 | 1988 | 862 | 3 | - | 178 | |
| Markt 52 | Shop | 1990 | 1900 | 284 | 1 | 45 | ||
| GROESBEEK | ||||||||
| Spoorlaan 1 | Shop | 1988 | 1989 | 1,100 | $\mathbf{1}$ | - | 147 | |
| GRONINGEN | ||||||||
| Brugstraat 2-6 / Schuitemakersstraat 1 | Shop | 1995 | 1905 | 840 | $\overline{2}$ | - | 152 | |
| Dierenriemstraat 198/2 Herestraat 41 |
Shop Shop |
1993 1994 |
1992 1991 |
914 243 |
$\mathbf{1}$ $\mathbf{1}$ |
÷ | 148 143 |
|
| Stoeldraaierstraat 17 | Shop | 1990 | 1953 | 266 | 1 | 10 | - - |
64 |
| Vismarkt 31-31a-c | Shop | 1993 | 1880 | 275 | 1 | 5 | - | 128 |
| HAAKSBERGEN | ||||||||
| Spoorstraat 45 | Shop | 1997 | 1986 | 800 | $\mathbf{1}$ | $\mathbf{1}$ | 85 | |
| HAARLEM | ||||||||
| Gen. Cronjéstraat 56-58 / Kloosterstraat 10 | Shop | 1996 | 1920 | 200 | $\mathbf{1}$ | 2 | 73 | |
| Grote Houtstraat 90 | Shop | 1988 | 1850 | 96 | 1 | - | 61 | |
| HARDENBERG | ||||||||
| Fortuinstraat 21 | Shop | 1997 | 1985 | 300 | 1 | 41 | ||
| Voorstraat 10 | Shop | 1997 | 1930 | 1,173 | $\mathbf{1}$ | 133 | ||
| HARDERWIJK | ||||||||
| Markt 14 | Shop | 1991 | 1875 | 470 | $\mathbf{1}$ | 83 | ||
| Shopping centre 'Vuldersbrink' | Shopping centre | 1998 | 1978 | 4,735 | 12 | 743 | ||
| HARLINGEN | ||||||||
| Kleine Bredeplaats 8a-10a / | ||||||||
| Grote Bredeplaats 26-26b Voorstraat 71 |
Shop Shop |
1997 | 1990 | 658 | 2 | 3 $\mathbf{1}$ |
- | 99 |
| HEEMSTEDE | 1997 | 1900 | 294 | $\mathbf{1}$ | $\overline{\phantom{0}}$ | 57 | ||
| Binnenweg 135-137 | Shop | 1989 | 1924 | 65 | $\mathbf{1}$ | $\mathbf{1}$ | $\overline{\phantom{0}}$ | 34 |
| HEERDE | ||||||||
| Dorpsstraat 57-61 | Shop | 1998 | 1994 | 1,270 | $\mathbf{1}$ | 2 | $\overline{\phantom{0}}$ | 182 |
| HEERLEN | ||||||||
| In de Cramer 140 | Retail warehouse | 2007 | 2007 | 6,000 | $\mathbf{1}$ | $\overline{\phantom{0}}$ | 120 | 478 |
| Saroleastraat 38 | Shop | 1994 | 1930 | 225 | $\mathbf{1}$ | $\mathbf{1}$ | - | 110 |
| HELDEN PANNINGEN | ||||||||
| Kepringelehof 3-5 and 9-11 | Shop | 1998 | 1991 | 2,990 | $\overline{a}$ | $\overline{\phantom{a}}$ | 147 | 350 |
| HELMOND | ||||||||
| Veestraat 1 | Shop | 1994 | 1950 | 240 | $\mathbf{1}$ | - | 91 | |
| Veestraat 39 | Shop | 1994 | 1960 | 136 | $\mathbf{1}$ | 39 | ||
| HENGELO | ||||||||
| De Telgen 9 | Shop | 1993 | 1920 | 105 | $\mathbf{1}$ | $\mathbf{1}$ | $\frac{1}{2}$ | 66 |
| Molenstraat 4 | Shop | 1991 | 1991 | 120 | $\mathbf{1}$ | $\mathbf{1}$ | $\overline{\phantom{0}}$ | 37 |
| Wegtersweg 4 | Retail warehouse | 2006 | 2006 | 4,622 | 1 | $\qquad \qquad -$ | 100 | 359 |
| HILLEGOM | ||||||||
| Hoofdstraat 66 | Shop | 1997 | 1930 | 145 | $\mathbf{1}$ | $\mathbf{1}$ | 49 |
| o | 03 Q. O O 01 D. ,>> |
c o 4-1 3 CT U ro O ro |
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|---|---|---|---|---|---|---|---|---|
| HILVERSUM | ||||||||
| Kerkstraat 55 | Shop | 1994 | 1950 | 130 | 1 | - | 70 | |
| Kerkstraat 87 | Shop | 1988 | 1905 | 100 | 1 | - | 60 | |
| Kerkstraat 91 | Shop | 1994 | 1850 | 250 | 2 | 60 | ||
| Kerkstraat 98 | Shop | 1990 | 1927 | 77 | 1 | 1 | 58 | |
| Schoutenstraat 6 | Shop | 1987 | 1923 | 65 | i | - | 36 | |
| Schoutenstraat 8 | Shop | 1986 | 1923 | 122 | - | 50 | ||
| 'S-HERTOGENBOSCH | ||||||||
| Hinthamerstraat 48 | Shop | 1988 | 1900 | 130 | 1 | 2 | 75 | |
| Hooge Steenweg 19-23 | Shop | 1994 | 1800 | 555 | 1 | 8 | 214 | |
| Schapenmarkt 17-21 | Shop | 1988 | 1890 | 476 | 1 | - | 141 | |
| HOOGEVEEN | ||||||||
| Hoofdstraat 157 | Shop | 1993 | 1960 | 75 | 37 | |||
| HOOGEZAND | ||||||||
| Gorecht Oost 133-135 | Shop | 1993 | 1970 | 160 | 53 | |||
| HOORN | ||||||||
| Grote Noord 114 | Shop | 1996 | 1912 | 85 | 1 | - | - | 30 |
| Grote Noord 118 | Shop | 1994 | 1900 | 80 | 1 | 1 | - | 51 |
| Nieuwsteeg 24 | Shop | 1994 | 1920 | 134 | 1 | 1 | - | 67 |
| HOUTEN | ||||||||
| Het Rond2 ) |
Shop | 90/08 | 84/08 | 28,063 | 111 | - | 505 | 6,552 |
| Onderdoor 3-13 | Other | 2006 | 1984 | 2,187 | 5 | - | 14 | 334 |
| Onderdoor 4, 4a | Other | 2010 | 2010 | 2.105 | 1 | - | - | 239 |
| IJSSELSTEIN | ||||||||
| Utrechtsestraat 45 | Shop | 2007 | 2007 | 595 | 1 | _ | _ | 97 |
| Utrechtsestraat 75 | Shop | 1990 | 1911 | 300 | 1 | - | - | 73 |
| JOURE | ||||||||
| Midstraat 153-163 | Shop | 1998 | 2006 | 2,519 | 6 | 5 | _ | 383 |
| LEEK | ||||||||
| Tolberterstraat 3-5 | Shop | 1997 | 1996 | 575 | 77 | |||
| LEEUWARDEN | ||||||||
| Ruiterskwartier 127 | Shop | 1995 | 1929 | 291 | 1 | - | 39 | |
| Ruiterskwartier 135 | Shop | 1995 | 1930 | 70 | 1 | - | 36 | |
| Wirdumerdijk 7 / Weaze 16 | Shop | 1994 | 1920 | 520 | 2 | 1 | 193 | |
| LEIDEN | ||||||||
| Botermarkt 4-5 | Shop | 1988 | 1928 | 732 | 2 | _ | 101 | |
| Haarlemmerstraat 53 | Shop | 1996 | 1928 | 85 | 1 | - | 58 | |
| Haarlemmerstraat 202 / v.d. Werfstraat 39 | Shop | 1994 | 1928 | 110 | 1 | 5 | 53 | |
| Haarlemmerstraat 208 / Duizenddraadsteeg 2 | Shop | 1993 | 1928 | 72 | 1 | 1 | 39 | |
| Haarlemmerstraat 213 | Shop | 1990 | 1928 | 546 | 1 | - | 88 | |
| Maarsmansteeg 2 | Shop | 1989 | 1928 | 121 | 1 | - | 23 | |
| Vismarkt 2-3 | Shop | 1993 | 1900 | 135 | 1 | 3 | 50 | |
| LELYSTAD | ||||||||
| DePromessell3,115,121,123,129 and 135/ | ||||||||
| Stationsweg 22 en 23 | Shop | 2009 | 2009 | 7.349 | 8 | 1.043 | ||
| Stadhuisstraat 21 ) |
Shop | 1995 | 1975 | 470 | 1 | - | 115 | |
| Stadhuisplein 751 ) |
Shop | 1996 | 1985 | 1,632 | 1 | _ | 242 | |
| LEUSDEN | ||||||||
| Grutterij 6 | Shopping centre | 1996 | 1980 | 150 | 44 | |||
| MAASTRICHT | ||||||||
| Muntstraat 16-18 | Shop | 1989 | 1897 | 135 | 99 | |||
| Muntstraat20 | Shop | 1987 | 1891 | 110 | 105 |
| c 3 >- o £ |
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o o ro c o 03 ro 03 03 fc O 1» O 03 u - C e |
|---|---|---|---|---|---|---|---|---|
| Wolfstraat 8 / Minckelersstraat 1 MEPPEL |
Shop | 1992 | 1883 | 789 | 302 | |||
| Hoofdstraat 50 | Shop | 1990 | 1980 | 143 | 38 | |||
| MIDDELBURG | ||||||||
| Korte Delft 1 | Shop | 1991 | 1950 | 75 | 2 | - | - | 32 |
| Lange Delft 59 | Shop | 1991 | 1850 | 198 | 1 | - | - | 51 |
| MIDDELHARNIS | ||||||||
| Westdijk 22-24 | Shop | 1997 | 1990 | 325 | 1 | - | - | 64 |
| MIJDRECHT | ||||||||
| Prinses Margrietlaan 24-52 | Shopping centre | 1993 | 1965 | 2,225 | 10 | - | - | 376 |
| NIJKERK | ||||||||
| Oosterstraat 2-2a and 4-4a | Shop | 1997 | 1969 | 420 | 2 | 2 | - | 49 |
| NIJMEGEN | ||||||||
| Broerstraat 26 / Scheidemakershof 37 | Shop | 1993 | 1960 | 161 | 1 | 3 | _ | 101 |
| Broerstraat 70 / Plein 1944 no. 151 | Shop | 1989 | 1951 | 1,033 | 2 | - | - | 317 |
| Houtstraat 35 / T. Brandsmastraat 1-3 | Shop | 1989 | 1951 | 204 | 1 | 7 | - | 70 |
| Molenstraat 130-134 / Piersonstraat 75-77 | Shop | 1988 | 1900 | 1,231 | 3 | - | - | 156 |
| Molenstraat 136 | Shop | 1988 | 1925 | 60 | 1 | - | - | 26 |
| Molenstraat 140 /1 e Walstraat 2 |
Shop | 1989 | 1918 | 400 | 1 | 3 | - | 117 |
| Plein 1944 no. 2 | Shop | 1988 | 1957 | 164 | 1 | 7 | - | 57 |
| OOSTERHOUT | _ | _ | ||||||
| Arendshof 48-52 | Shopping centre | 2000 | 1963 | 349 | 1 | 110 | ||
| Arendstraat 9-11 | Shop | 1994 | 1982 | 889 | 3 | - | - | 176 |
| Arendstraat 13 | Shop | 1994 | 1989 | 440 | 2 | 1 | - | 173 |
| OSS Heschepad 49-51 / Molenstraat 21-25 |
Shop | 1986 | 1983 | 2,803 | 3 | - | - | 326 |
| PURMEREND | ||||||||
| Hoogstraat 19 / Zuidersteeg 16 | Shop | 1993 | 1978 | 999 | 2 | 1 | _ | 169 |
| Kaasmarkt 7 / Westersteeg 1 | Shop | 1994 | 1920 | 135 | 1 | 1 | - | 53 |
| Padjedijk4/Barak1 | Shop | 1989 | 1900 | 82 | 1 | 1 | - | 26 |
| Padjedijk 6-8 | Shop | 1989 | 1800 | 257 | 2 | - | - | 55 |
| RENKUM | ||||||||
| Dorpsstraat 21-23 | Shop | 1997 | 1907 | 520 | 1 | - | - | 52 |
| RIDDERKERK | ||||||||
| St.Jorisplein30 | Shop | 1994 | 1970 | 478 | 3 | - | - | 103 |
| RODEN | ||||||||
| Heerestraat 94 | Shop | 1997 | 1967 | 260 | 2 | - | - | 54 |
| ROERMOND | ||||||||
| Hamstraat 34-38 / Veldstraat 19 | Shop | 1998 | 1996 | 1,763 | 2 | _ | 6 | 149 |
| Schaarbroekerweg 14-58 | Retail warehouse | 2008 | 2007 | 34,098 | 16 | - | 1,250 | 3,866 |
| Schoenmakersstraat 2 | Shop | 1994 | 1900 | 140 | 1 | - | - | 77 |
| Steenweg 1 / Schoenmakersstraat 6-18 | Shop | 1986 | 1980 | 2,283 | 7 | - | - | 339 |
| ROOSENDAAL | ||||||||
| Nieuwe Markt 51 | Shop | 1994 | 1960 | 200 | 51 | |||
| ROTTERDAM | ||||||||
| Keizerswaard 73 | Shopping centre | 1996 | 1992 | 280 | 1 | 47 | ||
| Korte Hoogstraat 22-26 / Soetensteeg 1 | Shop | 1993 | 1952 | 819 | 3 | 124 | ||
| Lijnbaan 35-43 | Shop | 1987 | 1955 | 880 | 4 | 229 | ||
| Zuidplein Hoog 587 | Shopping centre | 1995 | 1972 | 160 | 1 | 70 | ||
| Zuidplein Hoog 611 | Shopping centre | 1994 | 1972 | 37 | 1 | 28 | ||
| Zuidplein Hoog 731 | Shopping centre | 1995 | 1972 | 50 | 1 | 53 |
| IJ 0 = 0 u u _J |
01 Q. O O 03 Q. |
c o 3 CT 03 >- |
c o C c 8 -B 'S 2 1- o ro c 03 o. |
_03 E CT |
03 E 3 |
03 E 3 |
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|---|---|---|---|---|---|---|---|---|
| Zuidplein Hoog 743 and 747 | Shopping centre | 2010 | 1972 | 410 | 302 | |||
| Zuidplein Hoog 910 and 912 | Shopping centre | 2010 | 1972 | 658 | 179 | |||
| Zwart Janstraat 4 | Shop | 1988 | 1892 | 96 | 47 | |||
| Zwart Janstraat 8 | Shop | 1988 | 1892 | 120 | 42 | |||
| Zwart Janstraat 24 | Shop | 1988 | 1892 | 83 | 38 | |||
| Zwart Janstraat 34 | Shop | 1991 | 1887 | 92 | 31 | |||
| Zwart Janstraat 36-38 | Shop | 1994 | 1887 | 200 | 84 | |||
| Zwart Janstraat 55-59 | Shop | 1987 | 1950 | 272 | 101 | |||
| Zwart Janstraat 58-60 | Shop | 1992 | 1888 | 160 | 60 | |||
| Zwart Janstraat 63 | Shop | 1990 | 1893 | 70 | 23 | |||
| Zwart Janstraat 71-73 | Shop | 1994 | 1900 | 178 | 56 | |||
| Zwart Janstraat 72 | Shop | 1991 | 1888 | 95 | 36 | |||
| Zwart Janstraat 84 SCHIEDAM |
Shop | 1994 | 1920 | 92 | 34 | |||
| Hofvan SpaiandBS1 ) |
Shopping centre | 1997 | 1970 | 217 | 46 | |||
| Hofvan Spaland361 ) |
Shopping centre | 1996 | 1978 | 205 | 41 | |||
| Hofvan Spaland401 ) |
Shopping centre | 1996 | 1978 | 130 | 38 | |||
| SCHOONHOVEN | ||||||||
| Lopikerstraat 27-29 | Shop | 1998 | 1977 | 320 | 1 | 70 | ||
| SITTARD | ||||||||
| De Kemperkoul | Shopping centre | 1993 | 1987 | 1,771 | 8 | 330 | ||
| SNEEK | ||||||||
| Oosterdijk 58 | Shop | 1996 | 1940 | 75 | 1 | 38 | ||
| Schaapmarktplein 4 | Shop | 1994 | 1852 | 275 | 1 | 42 | ||
| SPIJKENISSE | ||||||||
| Nieuwstraat 118-232 | Shopping centre | 2010 | 1981 | 2,832 | 18 | 883 | ||
| STADSKANAAL | ||||||||
| Europaplein 3 | Shop | 1994 | 1970 | 160 | 1 | 41 | ||
| Europaplein 20 | Shop | 1993 | 1970 | 150 | 1 | 27 | ||
| Europaplein 60 and 73 | Shop | 1997 | 1983 | 246 | 2 | 64 | ||
| Navolaan 12 | Shop | 1993 | 1968 2,080 | 5 | 131 | |||
| STEENWIJK | ||||||||
| Oosterstraat 22-26 THE HAGUE |
Shop | 1994 | 1900 | 285 | 58 | |||
| Frederik Hendriklaan 101-103 | Shop | 1989 | 1995 | 90 | 3 | 65 | ||
| Frederik Hendriklaan 128 / v. Beuningenstraat 48 | Shop | 1987 | 1990 | 125 | 1 | 2 | 57 | |
| Gravenstraat 1 | Shop | 1993 | 1916 | 374 | 1 | - | 69 | |
| Grote Markt 4 | Shop | 1990 | 1900 | 964 | 1 | - | 204 | |
| Hoogstraat 24-26 | Shop | 1988 | 1923 | 319 | - | 69 | ||
| Hoogstraat 27-27a | Shop | 1986 | 1916 | 530 | - | 111 | ||
| Korte Poten 10 | Shop | 1989 | 1916 | 56 | - | 29 | ||
| Korte Poten 13 | Shop | 1990 | 1916 | 120 | - | 67 | ||
| Korte Poten 42 Korte Poten 46 / Bleyenburg 35-37 |
Shop Shop |
1987 1990 |
1900 1920 |
55 131 |
! ; |
2 1 |
49 38 |
|
| Lange Poten 7 | Shop | 1989 | 1937 | 112 | - | 33 | ||
| Lange Poten 21 | Shop | 1989 | 1916 | 204 | : ! |
2 | 116 | |
| Noordeinde 9 / Hartogstraat 1 | Shop | 1988 | 1916 | 100 | - | 80 | ||
| Noordeinde 16-18 | Shop | 1989 | 1888 | 530 | ' 1 |
1 | 118 | |
| Noordeinde 48 | Shop | 1988 | 1921 | 80 | - | 58 | ||
| Noordeinde 54 / Molenstraat 1 | Shop | 1989 | 1919 | 90 | 1 | 73 | ||
| Plaats 17 and 21 | Shop | 1990 | 1916 | 415 | ) ; |
129 |
| Location Country City |
2 Q. O Ol Q. |
§ •£ 'ÏA 3 CT U ro * 4 - o L. ro |
Year of construction/ renovation |
Lettable floor space (sqm) |
i/i 4-* c 10 c 03 1 4 - o 03 X i E 3 Z |
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€ 1,000) Theoretical rental income (x |
|---|---|---|---|---|---|---|---|---|
| Plaats 25 | Shop | 1987 | 1920 | 517 | 1 | 68 | ||
| Plein 10 | Shop | 1988 | 1920 | 507 | 1 | - | - | 115 |
| Plein 11 | Shop | 1987 | 1917 | 276 | 1 | - | - | 74 |
| Spuistraat 13 | Shop | 1988 | 1930 | 858 | 1 | - | - | 307 |
| Venestraat 43 | Shop | 1989 | 1916 | 115 | 1 | - | " | 40 |
| Vlamingstraat 43 | Shop | 1995 | 1916 | 163 | 1 | - | " | 87 |
| TIEL | _ | |||||||
| Waterstraat 29 / Kerkstraat 2b | Shop | 1994 | 1850 | 70 | 1 | 1 | 46 | |
| Waterstraat 51a TILBURG |
Shop | 1994 | 1920 | 65 | 1 | - | " | 44 |
| Heuvel 29-31 / J. v. Stolbergstraat 2-6 | Shop | 1994 | 1920 | 298 | 3 | 3 | - | 139 |
| Westermarkt 16-17 | Shopping centre |
2008 | 1963 | 1,919 | 1 | - | - | 299 |
| Westermarkt 28-29 and 35-37 | Shopping centre |
1993 | 1963 | 2.274 | 6 | - | - | 324 |
| Westermarkt 33 | Shopping centre |
2008 | 1963 | 223 | 1 | - | - | 30 |
| Westermarkt 38 | Shopping centre |
1993 | 1962 | 2,696 | 2 | - | - | 339 |
| Westermarkt 139-141 | Shopping centre | 1994 | 1961 | 502 | 1 | - | " | 134 |
| UDEN | ||||||||
| Marktstraat 32 | Shop | 1994 | 1958 | 420 | 1 | 1 | " | 119 |
| UTRECHT | ||||||||
| Achter Clarenburg 19 | Shop | 1987 | 1975 | 91 | 1 | - | " | 47 |
| Choorstraat 13 | Shop | 1987 | 1900 | 139 | 1 | 1 | - | 61 |
| Lange Elisabethstraat 6 | Shop | 1987 | 1850 | 113 | 1 | - | - | 86 |
| Lange Elisabethstraat 36 | Shop | 1993 | 1850 | 188 | 1 | - | - | 99 |
| Nachtegaalstraat 55 | Shop | 1994 | 1904 | 2,116 | 2 | 2 | " | 289 |
| Oudegracht 126-128 | Shop | 1990 | 1930 | 209 | 2 | 1 | - | 66 |
| Oudegracht 134-136 / Vinkenburgstraat 8 and 12-14 Shop | 1987 | 1900 | 2,482 | 9 | 5 | " | 560 | |
| Oudegracht 153 | Shop | 1997 | 1904 | 819 | 3 | - | " | 210 |
| Oudegracht 161 | Shop | 1997 | 1900 | 1,963 | 4 | - | - | 548 |
| Roelantdreef 1-3 | Shopping centre |
2010 | 1970 | 1,823 | 3 | - | - | 397 |
| Roelantdreefl 8,245-263 T) | Shopping centre |
2010 | 1970 | 1,030 | 7 | - | - | 526 |
| Roelantdreef249l) | Shopping centre |
1994 | 1970 | 170 | 1 | - | - | 87 |
| Seinedreef2-81 ) |
Shopping centre |
2010 | 1970 | 2,271 | 3 | - | " | 422 |
| Steenweg 9 / Choorstraat 9-9bis | Shop | 1990 | 1900 | 578 | 2 | 3 | " | 153 |
| Zamenhofdreef 431 ) |
Shopping centre |
2010 | 1970 | 80 | 1 | - | " | 38 |
| VAASSEN | ||||||||
| Dorpsstraat 22 | Shop | 1990 | 1981 | 550 | - | - | " | 55 |
| VEENENDAAL | ||||||||
| Hoofdstraat 25 | Shop | 1990 | 1930 | 260 | 1 | - | - | 54 |
| Hoofdstraat 40-42 / Tuinstraat 95-97 VECHEL |
Shop | 1988 | 1967 | 1.413 | 3 | - | - | 154 |
| Kalverstraat 8-16 | Shop | 1993 | 1988 | 446 | 3 | 3 | - | 102 |
| VELP | ||||||||
| Hoofdstraat 77-79 | Shop | 1997 | 1937 | 4 40 | 1 | - | - | 61 |
| VENLO | ||||||||
| Lomstraat 30-32 | Shop | 1993 | 1960 | 465 | 1 | - | " | 154 |
| Lomstraat 33 | Shop | 1994 | 1970 | 50 | - | - | - | 32 |
| VEN RAY | ||||||||
| Crotestraat 2-4 / Grote Markt 2a-4 | Shop | 1986 | 1946 | 1,166 | 4 | - | " | 159 |
| VRIEZENVEEN | ||||||||
| Westeinde 19-29 | Shop | 1993 | 1938 | 2,781 | 8 | - | 80 | 311 |
| I I ^ ^ ro O .« g U U -J |
2 Q. o |
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C o 4-l 3 V. c c o o u 4- ro o ro O c £ |
03 U ro Q . i ^ i - o 14- 03 _ X i b CT ti 01 i ^ —3 |
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o o ro o c 03 w ro X 03 01 E o o u c 03 1 - |
|---|---|---|---|---|---|---|---|---|
| WASSENAAR Langstraat 188-190 |
Shop | 1990 | 1981 | 290 | 69 | |||
| WINSCHOTEN | ||||||||
| Langestraat 22 / Venne 109 | Shop | 1994 | 1900 | 70 | 1 | - | 28 | |
| Langestraat 24 | Shop | 1991 | 1960 | 430 | 1 | - | 61 | |
| WINTERSWIJK | ||||||||
| Dingstraat 1-3 | Shop | 1998 | 1900 | 2,335 | 1 | _ | 65 | 265 |
| Misterstraat 8-10 / Torenstraat 5a and 5c | Shop | 1996 | 1900 | 441 | 1 | 2 | 2 | 144 |
| Misterstraat 12 / Torenstraat 5b | Shop | 1991 | 1939 | 135 | 1 | 1 | 52 | |
| Misterstraat 14 | Shop | 1991 | 1989 | 377 | 2 | - | 98 | |
| Misterstraat 33 | Shop | 1999 | 1900 | 550 | 1 | - | 77 | |
| Weurden 2-4 | Shop | 1998 | 1977 | 278 | 2 | 3 | 64 | |
| Wooldstraat26 | Shop | 1999 | 1900 | 603 | 2 | - | 85 | |
| ZAANDAM | ||||||||
| Gedempte Gracht 37 / Rozengracht 90 | Shop | 1993 | 1888 | 235 | 2 | - | 74 | |
| Gedempte Gracht 80 / Vinkenstraat 41 | Shop | 1993 | 1920 | 55 | 1 | 1 | 31 | |
| ZEEW0LDE | ||||||||
| Flevoplein 1-6 | Shopping centre | 1994 | 1991 | 2,033 | 5 | - | 304 | |
| Kerkplein 23 / Torenstraat 3 | Shop | 1997 | 1991 | 328 | 3 | 5 | 96 | |
| Kerkstraat 6-18 | Shop | 1997 | 1996 | 689 | 3 | 2 | 144 | |
| ZEIST | ||||||||
| Slotlaan 194 / Huydecoperweg 9a | Shop | 1999 | 1981 | 90 | 1 | 1 | 46 | |
| ZOETERMEER | ||||||||
| Lijnbaan 285-297 | Shopping centre | 1994 | 1988 | 2,476 | 8 | - | 434 | |
| ZUNDERT | ||||||||
| Markt 16a and 17-18 | Shop | 1998 | 1965 | 1,062 | 3 | - | 136 | |
| ZUTPHEN | ||||||||
| Beukerstraat 28 | Shop | 1989 | 1800 | 296 | - | 50 | ||
| Beukerstraat 40 | Shop | 1989 | 1838 | 335 | - | 42 | ||
| ZWOLLE | ||||||||
| Broerenstraat 7 | Shop | 1994 | 1930 | 66 | _ | 15 | ||
| Diezerstraat 62 | Shop | 1996 | 1910 | 95 | - | 83 | ||
| Diezerstraat 78 | Shop | 1990 | 1832 | 140 | - | 66 | ||
| Kleine A 11-13 / Broerenkerkplein 2-6 | Shop | 1989 | 1989 | 1,050 | 3 | 200 | ||
| Luttekestraat 26 / Ossenmarkt 1 a | Shop | 1990 | 1930 | 78 | 1 | 32 | ||
| Roggenstraat 3 | Shop | 1994 | 1800 | 104 | - | 32 | ||
| Roggenstraat 6 | Shop | 1987 | 1900 | 106 | - | 44 | ||
| Total investment properties in operation the Netherlands | 279,688 | 732 | 296 | 2.439 52,129 | ||||
| SPAIN | ||||||||
| ALICANTE | ||||||||
| 'Parque Vistahermosa' | ||||||||
| Avenida Antonio Ramos Carratala 56-60 | Retail warehouse | 1999 | 2002 | 34,609 | 10 | - | 2,100 | 4,381 |
| BADALONA | ||||||||
| 'Centro Comercial Montigala' | ||||||||
| PasseigOlof Palme 28-36 | Shopping centre | 1998 | 1991 | 11,396 | 52 | - | 2,618 | 3,435 |
| BARCELONA | ||||||||
| Ronda de la Universitat 35 | Shop | 2000 | <1950 | 645 | 1 | 184 |
| £ .2 o U U JJ o .tr |
^ ^ 2 CL M |
c o 4-» ' 3 S" 0 OJ |
c 0 4-* u 3 tt c c 0 0) 0 0 ro c OJ |
u CL 0 OJ -^ h 4-* CT 1/1 |
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0 0 ro 0 c 01 lil' ro X 01 E O 0 01 u -C c 1 - |
|---|---|---|---|---|---|---|---|---|
| BURGOS | ||||||||
| 'Centro Comercial El Mirador' | ||||||||
| Carretera de Santener | Shopping centre | 99/01 | 1997 | 9,832 | 42 | - | 1,500 | 2,244 |
| CASTELLÓN DE LA PLANA | ||||||||
| Calle Crecia 4 | Retail warehouse | 2001 | 2003 | 5,109 | 1 | 885 | ||
| LEON | ||||||||
| Avenida Ordono II18 | Shop | 2001 | <1950 | 591 | 1 | 228 | ||
| MADRID | ||||||||
| Calle de Fuencarral 23 | Shop | 2006 | <1950 | 256 | 1 | - | 324 | |
| Calle de Fuencarral 25 | Shop | 2006 | <1950 | 120 | 1 | - | 144 | |
| Calle Serrano 36 | Shop | 1999 | <1950 | 615 | 1 | - | 556 | |
| Calle Tetuan 19 / Calle Carmen 3 | Shop | 2002 | <1950 | 429 | 1 | - | 501 | |
| 'Centro Comercial Cetafe Ml' | ||||||||
| Avenida Juan Carlos I, I1 ) |
Shopping centre | 2006 | 2006 | 20.328 | 49 | 1,446 | 3.677 | |
| 'Centro Comercial Las Rosas' | ||||||||
| Avenida Guadalajara s/No | Shopping centre | 99/01 | 1998 | 8,254 | 89 | 1,800 | 4,195 | |
| 'Centro Comercial Madrid Sur' | ||||||||
| Avenida Pablo Neruda 91-97 | Shopping centre | 2003 | 1998 | 23,405 | 69 | 2.500 | 5,650 | |
| MALAGA | ||||||||
| 'Centro Comercial La Rosaleda' | ||||||||
| Avenida Simon Bolivar | Shopping centre | 1998 | 1993 | 15,336 | 70 | 3,200 - |
4.946 | |
| Plaza de la Constitución 9 | Shop | 2010 | <1950 | 279 | 1 | 300 | ||
| MURCIA | ||||||||
| 'Centro Comercial Las Atalayas' | ||||||||
| C/Molina de Segura s/no | Shopping centre | 99/01 | 1993 | 10,342 | 41 | 2,222 | 3.207 | |
| Total investment properties in operation Spain | 141,546 | 430 | 17.386 | 34.857 | ||||
| FRANCE | ||||||||
| ACEN | ||||||||
| Boulevard de la République 36 ALEN^ON |
Shop | 2001 | 1950 | 700 | 1 | 94 | ||
| Rue de la Cave aux Boeufs 1-7/ RuedeCygne 12 | Shop | 2001 | 1950 | 2,368 | 2 | 237 | ||
| AMIENS | ||||||||
| Rue des Trois Cailloux 7-9 | Shop | 2000 | 1950 | 560 | 1 | 296 | ||
| ANGERS | ||||||||
| Rued'Alsace9 | Shop | 2001 | 1950 | 67 | 1 | 52 | ||
| Rue Lenepveu 25-29 | Shop | 1998 | 1990 | 4,664 | 5 | 967 | ||
| ANNECY | ||||||||
| Ruede Vaugelas22 ARMENTIÈRES |
Shop | 2001 | 1950 | 60 | 1 | 17 | ||
| Place du General de Gaulle 31 | Shop | 2007 | 1945 | 180 | 1 | 26 | ||
| ARRAS | ||||||||
| Rue Ernestale 31-35 | Shop | 2006 | 1920 | 947 | 3 | 394 | ||
| AUCNY | ||||||||
| RueduBoisd'Orly23 | Retail warehouse | 2008 | 2005 | 1,570 | 2 | 181 | ||
| Ruedu Boisd'Orly32 | Retail warehouse | 2007 | 1990 | 2,116 | 1 | 157 | ||
| AULNOYE-AYMERIES | ||||||||
| Anatole France 45 | Shop | 2007 | 1945 | 137 | 1 | 13 | ||
| Rue Ampère 9 | Other | 2007 | 1950 | _ | _ | 3 |
| c o c 3 u u |
03 Q. O Ö 0) |
c o 4-» 3 u 03 O 2 |
C O 4-» u 3 C o O u 4-« 5 O O c OJ |
0 ) u L . o • 4 - ^ ^-^, fc 4-> 4 -' a t |
m c S M - o L - 03 - O E 3 Z |
ö 03 E 4-< ro Q . ro O L. 03 X i E 3 Z |
CTl C ro Q - O 03 131 X i 01 E CJ ro 3 CL Z t/i |
o o ro o c 03 w '- ro 4 - 1 03 E O o u 01 c xz 1- |
|---|---|---|---|---|---|---|---|---|
| BESAN^ON | ||||||||
| Grande Rue 22 / Place Pasteur 3 | Shop | 2001 | 1950 | 104 | 2 | 76 | ||
| BOULOGNE SUR MER | ||||||||
| Rue Adolphe Thiers 29 | Shop | 2001 | 1950 | 246 | 1 | 39 | ||
| BOURG ES | ||||||||
| RuedeMirebeau 14 | Shop | 2001 | 1950 | 50 | 24 | |||
| Rue de Mirebeau 16 | Shop | 2001 | 1950 | 71 | 34 | |||
| BREST | ||||||||
| Rue deSiam 70 | Shop | 2000 | 1950 | 818 | 98 | |||
| CANNES | ||||||||
| Rue d'Antibes 40 | Shop | 2000 | 1950 | 948 | 343 | |||
| CARCASSONNE | ||||||||
| Place Carnot 16 | Shop | 2001 | 1950 | 90 | 21 | |||
| CHAMBÉRY | ||||||||
| Place Saint-Léger 228 | Shop | 2001 | 1950 | 40 | 53 | |||
| CHARLEVILLE-MÉZIÈRES | ||||||||
| Rue de la République 35-37 | Shop | 2001 | 1950 | 105 | 50 | |||
| CHAUM0NT | ||||||||
| Rue de la Victoire de la Marne 28-42 | Shop | 2001 | 1950 | 1.370 | 174 | |||
| DAX | ||||||||
| Rue des Carmes 7-9 | Shop | 2001 | 1950 | 248 | 56 | |||
| DIEPPE | ||||||||
| Grande Rue 84-86 | Shop | 2001 | 1950 | 100 | 54 | |||
| DIJON | ||||||||
| Rue du Bourg 39bis / Rue Jules Mercier 20bis | Shop | 2001 | 1950 | 40 | 35 | |||
| DOUAI | ||||||||
| Avenue Georges Clemenceau 21 DUNKIRK |
Shop | 2007 | 1900 | 318 | 10 | |||
| Centre Commercial 'Centre Marine' | ||||||||
| Place Emile Bollaert1 ) |
Shopping centre | 2005 | 2000 | 10,263 | 19 | - | 2.021 | |
| FERRIÈRE-LA-GRANDE | ||||||||
| Avenue Georges Clemenceau 1 | Other | 2007 | 1970 | - | - | 20 | 77 | |
| FROUARD | ||||||||
| RueduBois12 | Retail warehouse | 2007 | 1996 | 1.155 | 1 | 116 | ||
| GRENOBLE | ||||||||
| Grande Rue 11 | Shop | 2001 | 1950 | 73 | 1 | 22 | ||
| RuedesClercs 18 | Shop | 2001 | 1950 | 75 | 1 | 24 | ||
| LA GARDE | ||||||||
| ZAC Quatre Chemins de la Pauline | Retail warehouse | 2007 | 2005 | 1.967 | 4 | 89 | 403 | |
| LAVAL Rue du General de Gaulle 41 / Rue de Rennes 14 |
Shop | 2001 | 1950 | 450 | 1 | 55 | ||
| LE TOUQUET-PARIS-PLACE | ||||||||
| Rue de Metz 73 | Shop | 2007 | 1950 | 260 | 1 | |||
| LILLE | ||||||||
| Avenue Foch 21 | Other | 2007 | 1970 | 260 | _ | 36 | ||
| Avenue Lelièvre 364 | Other | 2007 | 1890 | - | - | 2 | ||
| Boulevard de la Liberté 62 | Shop | 2007 | 1945 | 79 | 1 | 19 | ||
| Pare Notre Dame 6 | Other | 2007 | 1890 | - | - | 6 | ||
| Place deBéthune 13 | Shop | 2007 | 1950 | 155 | 1 | 117 | ||
| Place de la Care 8 | Shop | 2007 | 1945 | 314 | 1 | 20 | ||
| Place de la Care 42 | Shop | 2007 | 1945 | 196 | 1 | 58 |
| Location Country City |
4-1 03 Q. 2 Q. 'S 03 Q. |
c O *^ 'l/l '5 CT u ro "o ro |
Year of construction/ renovation |
Lettable floor space (sqm) |
Number of tenants | c OI E 4-1 U ro Q. ro o L. 03 X i E 3 Z |
Number of parking spaces |
€ 1.000) Theoretical rental income (x |
|---|---|---|---|---|---|---|---|---|
| Place de la République 4bis | Shop | 2007 | 1945 | 162 | 1 | 25 | ||
| Place des Patiniers Ibis | Shop | 2007 | 1900 | 112 | 1 | - | - | 48 |
| Place des Patiniers 2 | Shop | 2007 | 1945 | 132 | 1 | - | - | 73 |
| Place des Reignaux 16 | Shop | 2007 | 1950 | 290 | 1 | - | - | 29 |
| Place du Lion d'Or 9 | Shop | 2007 | 1870 | 150 | 1 | - | - | 15 |
| Place Louise de Bettignies 15-17 | Shop | 2007 | 1870 | 352 | 1 | - | - | 190 |
| Rue Basse 8 | Shop | 2007 | 1930 | 293 | 2 | - | - | 54 |
| Rue de la Barre 8 | Shop | 2007 | 1987 | 47 | 1 | - | - | 19 |
| Ruede la Clef 43 | Other | 2007 | 1950 | - | - | 1 | 1 | |
| Rue de la Grande Chaussée 25 | Shop | 2007 | 1870 | 200 | - | - | 130 | |
| Rue de la Grande Chaussée 29 | Shop | 2007 | 1870 | 236 | 1 | 1 | - | 83 |
| Rue de la Grande Chaussée 33-35 | Shop | 2007 | 1870 | 429 | 1 | - | - | 171 |
| Ruede la Monnaie2 / | ||||||||
| Place Louise de Bettignies 11-13 | Shop | 2007 | 1870 | 240 | 1 | 4 | - | 288 |
| Rue de la Monnaie 4 | Shop | 2007 | 1870 | 103 | 1 | - | - | 85 |
| Rue de la Monnaie 6 | Shop | 2007 | 1870 | 126 | 1 | - | - | 65 |
| Ruede la Monnaie 6bis | Shop | 2007 | 1870 | 83 | 1 | - | - | 48 |
| Ruede la Monnaie 12 | Shop | 2007 | 1870 | 168 | 1 | - | - | 43 |
| Ruede la Monnaie 13 | Shop | 2007 | 1870 | 85 | 1 | - | - | 78 |
| Rue de la Monnaie 83 | Shop | 2007 | 1870 | 68 | 1 | 2 | - | 62 |
| Ruede Paris 20 | Shop | 2007 | 1870 | 336 | - | - | 82 | |
| Ruede Paris 38 | Shop | 2007 | 1870 | 100 | 1 | - | - | 60 |
| Ruede Paris 42 | Shop | 2007 | 1870 | 200 | 1 | - | - | 98 |
| Rue des Chats Bossus 13 | Shop | 2007 | 1870 | 418 | 1 | - | - | 150 |
| Rue des Chats Bossus 21 | Shop | 2007 | 1870 | 168 | 1 | - | - | 161 |
| Rue des Ponts de Comines 19bis/ | - | |||||||
| Rue Faidherbe 32-34 Rue des Ponts de Comines 30 |
Shop Shop |
2007 2007 |
1945 1945 |
676 197 |
1 1 |
4 - |
- | 230 65 |
| Rue des Ponts de Comines 31 | Shop | 2007 | 1945 | 179 | 1 | - | - | 11 |
| Rue des Ponts de Comines 32 | Shop | 2007 | 1945 | 267 | 1 | - | - | 171 |
| Rue Destailleurs 56 | Other | 2007 | 1890 | - | 1 | - | 1 | |
| Rue du Cure Saint-Etienne 6 | Shop | 2007 | 1950 | 153 | 1 | - | - | 26 |
| Rue du Cure Saint-Etienne 17 | Shop | 2007 | 1870 | 172 | 1 | - | - | 79 |
| Ruedu Faisan 6 | Shop | 2007 | 1950 | 105 | 1 | - | - | 20 |
| Rue du General de Wett 1 | Other | 2007 | 1960 | - | 2 | - | 13 | |
| Rue du Sec Arembault 24 | Shop | 2007 | 1945 | 78 | 1 | - | - | 70 |
| Rue Faidherbe 28-30 | Shop | 2007 | 1945 | 102 | 1 | - | - | 77 |
| Rue Faidherbe 38 | Shop | 2007 | 1945 | 59 | - | - | 37 | |
| Rue Faidherbe 42 | Shop | 2007 | 1945 | 86 | 1 | - | - | 5 |
| Rue Faidherbe 44 | Shop | 2007 | 1945 | 142 | - | - | 61 | |
| Rue Faidherbe 48 | Shop | 2007 | 1945 | 135 | 1 | - | - | 84 |
| Rue Faidherbe 50 | Shop | 2007 | 1945 | 308 | 1 | - | - | 90 |
| Rue Faidherbe 54 | Shop | 2007 | 1945 | 176 | 1 | - | - | 74 |
| RueGay-Lussacl7-19 | Other | 2007 | 1900 | - | 20 | - | 170 | |
| Rue jacquemars Giélée 106 | Other | 2007 | 1945 | - | 6 | - | 32 | |
| Rue Léon Gambetta 32 | Shop | 2007 | 1945 | 88 | - | - | 19 | |
| Rue Léon Gambetta 163 | Shop | 2007 | 1945 | 101 | 1 | - | - | 22 |
| Rue Léon Gambetta 236 | Shop | 2007 | 1950 | 115 | 1 | - | - | 36 |
| RueLéonThiriez98 | Other | 2007 | 1890 | - | 1 | - | 4 | |
| Square Dutilleul | Other | 2007 | 2008 | - | - | 2 | 4 |
| o U U JJ o ._ |
03 D. O o 03 CL |
c o • s 3 CT U ro O ro |
c o 4 -' 3 4-) i/l C O u 4-1 o o ro c 2 s |
03 u o. in O u - _03 -O ^~. k 4-* CT i/i 03 |
i/i C ro c O 01 X i E 3 Z |
C 03 Q. ro O t 03 .O E 3 Z |
CTl C -X TO O. *O - 03 X i E U ro 3 o. i/i Z |
o o ro c o ï Ml' X 4-» 01 E o s 03 1 - |
|---|---|---|---|---|---|---|---|---|
| LIMOGES | ||||||||
| Centre Commercial 'Beaubreuil' | Shopping centre | 2001 | 1980 | 4,452 | 14 | 530 | ||
| Centre Commercial 'Limoges Corgnac' LYON |
Shopping centre | 2007 | 2007 | 5,407 | 17 | 1,585 | ||
| Rue Victor Hugo 5 | Shop | 2001 | 1950 | 90 | 1 | 68 | ||
| MACON | ||||||||
| Rue Carnot 111/ Rue Rameau 39 | Shop | 2001 | 1950 | 160 | 1 | 81 | ||
| Rue Philibert Laguiche 11-13/ | ||||||||
| Place aux Herbes 53-56 MARSEILLE |
Shop | 2001 | 1950 | 1,148 | 1 | 79 | ||
| Rue Saint Ferréol 29 | Shop | 2007 | 1980 | 249 | 1 | 201 | ||
| NANCY | ||||||||
| Rue Saint-Jean 44-45 NICE |
Shop | 1998 | 1990 | 4,794 | 7 | - | 1,714 | |
| Avenue Jean Médecin 8bis / Rue Gustave Deloye 5 | Shop | 2001 | 1950 | 362 | 1 | 189 | ||
| Route de Grenoble 604 | Retail warehouse | 1999 | 1990 | 2,067 | 1 | 561 | ||
| PARIS | ||||||||
| Boulevard Saint-Germain 104 | Shop | 1998 | 1950 | 1.278 | 1 | 747 | ||
| Rued'Alésia 123 | Shop | 2006 | 1956 | 420 | 1 | 1 | 301 | |
| Ruede Rivoli 118-120 | Shop | 1998 | 1997 | 3,341 | 9 | 5 | 3,337 | |
| Rue Montmartre 17 | Shop | 2007 | 2003 | 270 | 1 | 167 | ||
| ROANNE | ||||||||
| Rue Bourgneuf 18 / Passage Bourgneuf 7 / | ||||||||
| Rue Charles de Gaulle 51-53 RONCQ |
Shop | 2001 | 1950 | 1,642 | 3 | 164 | ||
| Avenue de l'Europe 20 | Retail warehouse | 2007 | 2000 | 2,700 | 1 | 160 | ||
| ROUBAIX | ||||||||
| Grande Rue 21 | Shop | 2007 | 1900 | 1.059 | 1 | 112 | ||
| Grande Rue 56ter | Shop | 2007 | 1900 | 40 | - | 7 | ||
| Place de la Liberté 2 | Shop | 2007 | 1900 | 52 | 1 | 3 | ||
| SAINT-ETIENNE | ||||||||
| Rue Saint-Jean 27 | Shop | 2001 | 1950 | 60 | 1 | 11 | ||
| SECLIN | ||||||||
| Ruede l'industrie32 | Retail warehouse | 2007 | 2000 | 2,277 | 1 | 237 | ||
| SOISSONS | ||||||||
| Rue Saint-Martin 57 THOIRY |
Shop | 2001 | 1950 | 400 | 1 | 59 | ||
| Centre Commercial 'Val Thoiry' | Shopping centre | 1998 | 2000 | 14,825 | 61 | - | 5,435 | |
| Centre Commercial 'Val Thoiry 2' | Retail warehouse | 2009 | 2009 | 8,590 | 1 | 395 | ||
| THONON-LES-BAINS | ||||||||
| Rue des Arts 16 | Shop | 2001 | 1950 | 220 | 1 | 88 | ||
| TOULON | ||||||||
| Rue Jean Jaurès 82 / Rue Racine 11 TOURCOINC |
Shop | 2000 | 1950 | 1,609 | 2 | 162 | ||
| Place de Charles et Albert Roussel 32-33 TROYES |
Shop | 2007 | 1950 | 126 | 1 | 62 | ||
| Rue Emile Zola 113 | Shop | 2007 | 2006 | 359 | 1 | 184 | ||
| Rue Emile Zola 117 | Shop | 2001 | 1950 | 360 | 1 | 172 |
| a 3 u u |
2r Q. O p. |
c o '.M l/l 3 U ro O TO |
c o 4-1 u 3 l/l C c o o u ~ * • TO o > TO g |
03 U i f l U O c IS E 5 5 |
i/l C a M - O 03 ^ E 3 Z |
OI E Q . MTO - O 03 X i E 3 Z |
CTl IS D . * 4 - O 03 J i U b ro 3 Z C L Wl |
— o" ë § 01 i - ^ 1413 X 3 'S 03 incom Theor |
|---|---|---|---|---|---|---|---|---|
| VALENCE | - | _ | ||||||
| Avenue Victor Hugo 25 / Rue Pasteur 1-3 VICHY |
Shop | 2001 | 1950 | 200 | 1 | 60 | ||
| Rue Georges Clemenceau 12 / Rue Ravy-Breton 2 | Shop | 2001 | 1950 | 1,437 | 2 | _ | 181 | |
| 100.795 | 241 | 84 | 98 | 27.000 | ||||
| Total Investment properties in operation France | ||||||||
| BELGIUM3 ) |
||||||||
| AALST Albrechtlaan561 |
||||||||
| ) | Retail warehouse | 2000 | >1980 | 1.000 | 1 | - - |
72 72 |
|
| Brusselsesteenweg 41 Nieuwstraat 10 |
Retail warehouse | 2007 1998 |
>1980 <1950 |
770 151 |
1 1 |
- | 71 | |
| AARTSELAAR | Shop | |||||||
| Antwerpsesteenwe g 13/ 4 | Retail warehouse | 2000 | >1980 | 1.334 | 1 | - | 113 | |
| ANDENNE | ||||||||
| Avenue Roi Albert 137-139 | Retail warehouse | 1999 | >1980 | 5,809 | ' : |
481 | ||
| ANS | ||||||||
| Rue de Francais 393 | Retail warehouse | 1999 | >1980 | 3,980 | 11 | - | 384 | |
| ANTWERP | ||||||||
| Abdijstraat 29 | Shop | 1995 | <1950 | 198 | 1 | - | 36 | |
| Abdijstraat 82-84 | Shop | 1995 | <195 0 | 167 | 1 | - | 52 | |
| Carnotstraat 18-20 | Shop | 2000 | <1950 | 1,299 | 1 | - | 108 | |
| De Keyserlei 47 | Shop | 2000 | <195 0 | 62 | 1 | - | 49 | |
| De Keyserlei 49 | Shop | 2000 | <1950 | 102 | 1 | - | 62 | |
| Frankrijklel 27 | Shop | 1993 | <195 0 | 654 | 1 | 1 | 85 | |
| Groendalstraat 11 | Shop | 2000 | <1950 | 48 | - | 27 | ||
| Huidevettersstraa t 12 Korte Gasthuisstraat 27 |
Shop Shop |
1994 2000 |
<1950 <195 0 |
721 145 |
1 | - - |
288 | |
| Leysstraat 17 | 325 | 2 | 121 177 |
|||||
| Leysstraat 28-30 | Shop Shop |
2000 1997 |
<1950 <1950 |
1,705 | ; ! |
5 | 828 | |
| Meir99 | Shop | 1996 | <1950 | 583 | - | 450 | ||
| Schuttershofstraat 24 / Kelderstraat 7 | Shop | 2000 | <1950 | 106 | - | 95 | ||
| Schuttershofstraat 30 | Shop | 2000 | <1950 | 66 | - | 75 | ||
| Schuttershofstraat 32/Arme Duivelstraat 2 | Shop | 2000 | <1950 | 54 | - | 62 | ||
| BALEN | ||||||||
| Molsesteenweg 56 | Retail warehouse | 1999 | >1980 | 1,871 | ; 1 |
149 | ||
| BEAUMONT | ||||||||
| RueG. Michiels40 | Retail warehouse | 1998 | >1980 | 1,113 | - | 107 | ||
| BOECHOUT | ||||||||
| Hovesesteenwe g 123-12 7 BORGLOON |
Retail warehouse | 2002 | >1980 | 1,230 | - | 100 | ||
| SittardstraatIO | Retail warehouse | 1999 | >198 0 | 996 | : 1 |
59 | ||
| BREE | ||||||||
| Toleikstraat 30 | Retail warehouse | 1999 | >1980 | 855 | - | 59 | ||
| BRUGES Maalsesteenweg 142 |
Retail warehouse | 2007 | >198 0 | 600 | - | 65 | ||
| Steenstraat 80 | Shop | 1998 | <1950 | 2,058 | ; 1 |
906 | ||
| BRUSSELS | ||||||||
| Elsensesteenweg 16 | Shop | 1996 | <195 0 | 1.325 | I | 251 | ||
| Elsensesteenweg 41-43 | Shop | 1998 | <1950 | 6.577 | 1 | 1.645 |
| Location Country City |
>% 4 -i OI Q. O O. 'o 03 o. |
c o 4-1 'l/ l ' 5 CT u TO o L. TO |
Year of construction/ renovation |
Lettable floor space (sqm) |
i/i 4-> c ro c 3 O i - Ü E 3 Z |
c 43 E 4-1 TO eu TO " o 03 X i E 3 Z |
Number of parking spaces |
€ 1.000) Theoretical rental income (x |
|---|---|---|---|---|---|---|---|---|
| Louizalaan 7 | Shop | 2000 | <195 0 | 245 | 1 | 375 | ||
| Nieuwstraat 98 CHENEE |
Shop | 2001 | <195 0 | 150 | 1 | - | - | 214 |
| Rue de la Station 23 DIEST |
Retail warehouse | 2002 | 50/80 | 2.881 | 2 | - | - | 242 |
| Hasseltsestraat 15 DILSEN |
Shop | 1998 | <1950 | 198 | 1 | - | - | 46 |
| Rijksweg 17 no. 770 DROGENBOS |
Retail warehouse | 1999 | >1980 | 992 | 1 | - | - | 79 |
| Nieuwe Stallestraat 217 FLÉMALLE |
Retail warehouse | 2007 | >198 0 | 530 | 1 | - | - | 74 |
| Rue de la Fabrique 6 FROYENNES |
Retail warehouse | 2002 | >198 0 | 2.887 | 5 | - | - | 228 |
| RuedesRoselières6 GENK |
Retail warehouse | 2000 | >1980 | 950 | 1 | - | - | 103 |
| Guillaume Lambertlaan 115 | Retail warehouse | 1999 | >1980 | 3,109 | 6 | - | - | 222 |
| Hasseltweg 74 GHENT |
Retail warehouse | 2002 | >1980 | 2,331 | 4 | - | - | 225 |
| Veldstraat 81 /Zonnestraat6-10 | Shop | 1998 | <195 0 | 2.966 | 5 | - | - | 565 |
| Volderstraat 15 GRIVEGNÉE |
Shop | 1993 | <195 0 | 279 | 1 | - | - | 155 |
| Boulevard de Froidmont 29 | Retail warehouse | 2007 | >1980 | 1,100 | 2 | - | - | 106 |
| Rue Servais Malaise HASSELT |
Retail warehouse | 2002 | >1980 | 2,000 | 1 | - | - | 130 |
| Genkersteenweg 76 | Retail warehouse | 1999 | >1980 | 996 | 2 | - | - | 91 |
| Genkersteenweg 215-219 | Retail warehouse | 2007 | >1980 | 1,745 | 2 | - | - | 174 |
| Genkersteenweg 282 HEUSDEN-ZOLDER |
Retail warehouse | 2000 | >1980 | 2,240 | 2 | - | - | 112 |
| Inakker | Retail warehouse | 2002 | >1980 | 1,019 | 2 | " | - | 70 |
| HOBOKEN Zeelandstraat 6-8 |
Retail warehouse | 2002 | >198 0 | 2,490 | 2 | - | - | 202 |
| HUY Rue Joseph Wauters 3') JEMAPPES |
Retail warehouse | 2007 | >1980 | 1,000 | 2 | - | - | 87 |
| Avenue Wilson 510 KAMPENHOUT |
Retail warehouse | 2007 | >1980 | 900 | 2 | - | - | 79 |
| Mechelsesteenweg 38-42 | Retail warehouse | 1999 | >1980 | 3,322 | 3 | - | - | 214 |
| KORBEEK-LO | ||||||||
| Tiensesteenweg 378 ^ KUURNE |
Retail warehouse | 2007 | >1980 | 990 | 1 | - | - | 106 |
| Ringlaan 12 LA LOUVIÈRE |
Retail warehouse | 2007 | >1980 | 1,336 | 2 | - | - | 68 |
| Avenue de la Wallonië 1 | Retail warehouse | 2007 | >1980 | 1,620 | 2 | - | - | 144 |
| Rue Albert Ier 84-86 LEOPOLDSBURG |
Shop | 2000 | <195 0 | 198 | 1 | - | - | 70 |
| Lidostraat 7 | Retail warehouse | 1999 | >1980 | 1,850 | 1 | - | - | 119 |
| LEUVEN Bondgenotenlaan 69-73 LIÈGE |
Shop | 2001 | <1950 | 1.495 | 2 | - | - | 628 |
| RuePontd'lle35 | Shop | 1998 | <195 0 | 80 | 1 | - | - | 77 |
| RuePontd'lle45 | Shop | 1998 | <195 0 | 55 | 1 | - | - | 69 |
| RuePontd'lle49 | Shop | 1998 | <1950 | 375 | 1 | - | - | 99 |
| 3 > - ^ o O U -J O .ti |
03 O. O CL O 03 Q . ^ |
^1 - D U ra • 4 - O ^ |
c C O o u TO O O c P 01 |
u. O O ^^ -O F 01 wl |
03 03 Xi E |
Q ro 01 -D E |
CTl C E u T TO Z M |
— O TO O 0 c 03 r- _ HP I i s I |
|---|---|---|---|---|---|---|---|---|
| MALMEDY Avenue des Allies 14b |
Retail warehouse | 1999 | >1980 | 813 | 1 | 58 | ||
| MECHELEN | ||||||||
| Bruul 39-41 | Shop | 2000 | <1950 | 361 | 2 | 193 | ||
| Bruul 42-44 | Shop | 2001 | <1950 | 2.948 | 2 | 672 | ||
| MERKSEM | ||||||||
| Bredabaan 474-476 | Shop | 1998 | 50/80 | 467 | 1 | 77 | ||
| MOESKROEN | ||||||||
| Petite Rue 18 | Shop | 1998 | <1950 | 235 | 1 | 46 | ||
| MONS | Retail warehouse | 2000 | >1980 | 1,000 | 1 | 87 | ||
| Chaussée de Binche 101 Grand Rue 19 |
Shop | 2000 | <195 0 | 185 | 1 | 80 | ||
| Rue de la Chaussée 31-33 | Shop | 1998 | <1950 | 447 | 2 | |||
| MONTIGNIES-SUR-SAMBRE | 147 | |||||||
| Rue de la Perseverance 14 | Retail warehouse | 2007 | >1980 | 750 | 1 | |||
| MORTSEL | 62 | |||||||
| Statielei 71-73 | Shop | 1998 | 50/80 | 4 30 | 2 | |||
| OVERPELT | 141 | |||||||
| Burgemeester Misottenstraat 3 | Retail warehouse | 2002 | >1980 | 877 | 2 | 86 | ||
| PHILIPPEVILLE | ||||||||
| Ruede France | Retail warehouse | 1999 | >1980 | 3,705 | 6 | 334 | ||
| SCHAARBEEK Leuvensesteenweg 610-640 |
Retail warehouse | 1999 | >1980 | 2,964 | 4 | |||
| SCHELLE | 352 | |||||||
| Provinciale Steenweg 453-455 | Retail warehouse | 99/02 | >198 0 | 2,962 | 8 | |||
| SCHERPENHEUVEL | 224 | |||||||
| Mannenberg 26 | Retail warehouse | 1999 | >1980 | 600 | 1 | |||
| SINT- OB-IN-'T-GOOR | 78 | |||||||
| Handelslei 10 | Retail warehouse | 2002 | >1980 | 600 | 1 | |||
| SINT-NIKLAAS | 68 | |||||||
| Kapelstraat 101 | Retail warehouse | 2007 | >198 0 | 740 | 1 | 25 | ||
| SINT-PI ETERS-LEEUW | 2007 | 1 | ||||||
| Bergensesteenweg 458 TIELT-WINCE |
Retail warehouse | >1980 | 750 | 75 | ||||
| 'Retailpark Gouden Kruispunt'. | ||||||||
| Aarschotsesteenweg 1-6 | Retail warehouse | 99/02 | >198 0 | 18,866 | 23 | 1,706 | ||
| TIENEN | ||||||||
| Slachthuisstraat 36 | Retail warehouse | 2002 | >1980 | 4,871 | 7 | 478 | ||
| TONGRES | ||||||||
| Maastrichterstraat | Shop | 2008 | 2008 | 8,890 | 23 | 1,120 | ||
| TURNHOUT | ||||||||
| Gasthuisstraat 5-7 | Shop | 2001 | <195 0 | 1.045 | 1 | 372 | ||
| Gasthuisstraat 32 VILVOORDE |
Shop | 1996 | <195 0 | 1.743 | 1 | 287 | ||
| Leuvensestraat 43 | Shop | 1998 | 2008 | 1.338 | 1 | 197 | ||
| Luchthavenlaan 5 | Retail warehouse | 1999 | >1980 | 6.345 | 3 | 545 | ||
| Mechelsesteenweg 48 | Retail warehouse | 1999 | >1980 | 7.936 | 12 | 722 | ||
| WATERLOO | ||||||||
| Chaussée de Bruxelles 284 | Retail warehouse | 1993 | 50/80 | 1,198 | 1 | 122 | ||
| WAVER | ||||||||
| Boulevard de l'Europe 41 | Retail warehouse | 2007 | >1980 | 860 | 1 | 131 |
| Location Country City |
Type of property | Year of acquisition | Year of construction renovation |
Lettable floor space (sqm) |
Number of tenants | Number of apartments | Number of parking spaces |
income $(x \in 1,000)$ Theoretical rental |
|---|---|---|---|---|---|---|---|---|
| Rue du Commerce 26 | Shop | 1998 | < 1950 | 242 | $\mathbf{1}$ | 56 | ||
| Rue du Pont du Christ 46 / Rue Barbier 15 WESTERLO |
Shop | 1998 | < 1950 | 319 | $\overline{2}$ | 122 | ||
| Hotelstraat 2 a-b WILRIJK |
Retail warehouse | 2007 | >1980 | 1,000 | $\overline{2}$ | 87 | ||
| Boomsesteenweg 643-645 | Retail warehouse | 2000 | 50/80 | 1,463 | 3 | 175 | ||
| Boomsesteenweg 666-672 | Retail warehouse | 2000 | >1980 | 4,884 | 4 | 509 | ||
| Total investment properties in operation Belgium | 160,067 | 243 | 10 | - | 21,656 | |||
| TURKEY | ||||||||
| ISTANBUL | ||||||||
| Bahariye Caddesi 58 | Shop | 2009 | 1985 | 400 | $\mathbf{1}$ | 201 | ||
| Bahariye Caddesi 66/b | Shop | 2009 | 2005 | 195 | $\mathbf{1}$ | 135 | ||
| 'Bomonti Park', Kazim Orbay Caddesi 3 | Shopping centre | 2007 | 2006 | 4,867 | 12 | 200 | 569 | |
| Istiklal Caddesi 34 | Shop | 2007 | 1980 | 1,170 | $\mathbf{1}$ | $\qquad \qquad$ | 497 | |
| Istiklal Caddesi 98 | Shop | 2008 | 2008 | 530 | $\mathbf{1}$ | 297 | ||
| Istiklal Caddesi 119 | Shop | 2009 | 2009 | 495 | $\overline{2}$ | 396 | ||
| Total investment properties in operation Turkey | 7,657 | 18 | 200 | 2,095 | ||||
| PORTUGAL | ||||||||
| BARCELOS | ||||||||
| Rua Porta Nova 41 | Shop | 2002 < 1950 | 128 | $\mathbf{1}$ | 29 | |||
| BRAGA | ||||||||
| Avenida Central 78-80 | Shop | 2002 | < 1950 | 471 | $\mathbf{1}$ | 122 | ||
| LISBON | ||||||||
| Rua Damião de Góis 41-44d | Shop | 2002 | < 1950 | 150 | $\mathbf{1}$ | 86 | ||
| Rua do Carmo 100-102 / | ||||||||
| Rua do Ouro 287 and 291-295 | Shop | 2002 | < 1950 | 1,139 | 5 | 389 | ||
| Rua Morais Soares 93 PORTO |
Shop | 2002 | < 1950 | 257 | $\mathbf{1}$ | 82 | ||
| Praça Marquês Pombal 152 | Shop | 2002 | < 1950 | 437 | $\mathbf{1}$ | 78 | ||
| Praça Mouzinho de Alburquerque 119-124 | Shop | 2002 | < 1950 | 148 | $\mathbf{1}$ | 80 | ||
| Rua de Brito Capelo 160 | Shop | 2002 | < 1950 | 164 | $\mathbf{1}$ | 65 | ||
| Rua Santa Caterina 325-329 | Shop | 2002 | < 1950 | 529 | $\mathbf{1}$ | 200 | ||
| Total investment properties in operation Portugal | 3,423 | 13 | $\qquad \qquad \blacksquare$ | 1,131 | ||||
| Total investment properties in operation | 693,176 | 1,677 | 390 | 20,123 138,868 |
1 Land on long lease.
2 VastNed Retail holds a 50% interest.
3 All Belgian properties are held directly by Intervest Retail, in which VastNed Ratail has a 72.4% interest at year-end 2010.
The theoretical rental income as at 31 December 2010. including turnover rents, mall income and other income, concerns rent in the case of full occupancy.
In uncertain economic times, the number of leases with irregular terms increases.
| t i ^ ^>. TO o .ti o u u -J |
>. 4-1 03 D. O Q. 03 |
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u Q. i^i O O EC! OJ ra E CT 1/1 |
c 4-< C 0 01 F F l/l 01 > 143 c X |
- 0 03 ' • M 4-3 01 z |
|---|---|---|---|---|---|
| ----------------------------------------------------- | ---------------------------------------- | ------------------------------------------------------ | --------------------------------------------------------- | ----------------------------------------------------------------- | -------------------------------------- |
| HENDRIK-IDO-AMBACHT | |||||
|---|---|---|---|---|---|
| Shopping centre 'Hoogambacht' HOUTEN |
Shopping centre | 2011 | 7,745 | 24.2 | 5.6% |
| Spoorhaag 130-134/ Achterom 1-51 ) |
Shop | 2007 | 2.575 | 4.1 | |
| LELYSTAD | |||||
| De Promesse 3-5 and 111 | Shop | 2009 | 1,313 | 2.6 | 5.3% |
| FRANCE | |||||
| ARRAS | Other | 0.7 | |||
| Rue Ernestale 35 / Rue de College1 ) |
|||||
| PLAISIR | Shopping centre | 1999 | 27,000 | 70.0 | 6.5% |
| Centre Commercial 'Plaisir-Sablons'1 ) |
|||||
| TURKEY | |||||
| ISTANBUL | Shop | 2010 | 3,650 | 24.9 | 7.3% |
| Istiklal Caddesi 85 | Shop | 2010 | 4,700 | 33.9 | 7.3% |
Uncommitted
| Netherlands | ||||
|---|---|---|---|---|
| Number of tenants1 ) |
||||
| Theoretical annual rental income | ||||
| (x€1 million)2 ) |
||||
| Market rent (x€ l million)2 ) |
||||
| Over/underrent (in %) | ||||
| Average occupancy rate (in %) | 97.6 | |||
| Occupancy rate at year-end (in %) | 96.6 | |||
| Number of properties (including pipeline) 324 | ||||
| Investments property | ||||
| including pipeline (x€ 1 million) | 754 | |||
| Investments property | ||||
| including pipeline (in %) | 38 | |||
| Average size per property including | ||||
| pipeline (x€ 1 million) | 2.3 | |||
| Lettable floor area including | ||||
| pipeline (x 1,000 sqm) | ||||
| Gross yield (in %) | ||||
| Net yield (in %) | ||||
| Sector spread per country including pipeline (i | ||||
| High street shops | 73 | |||
| Shopping centres | ||||
| Retail warehouses | ||||
| Average rent per sqm (x € 1) | ||||
| High street shops | ||||
| Shopping centres | ||||
| Retail warehouses | ||||
| Regional spread per country (in %) | ||||
| Super cities | ||||
| Large cities | ||||
| Medium-sized cities | ||||
| Small cities | ||||
| Average occupancy rate at year-end (in 1 | ||||
| High street shops | ||||
| Shopping centres | ||||
| Retail warehouses | ||||
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