Retail fund optimises structure and expands towards a billion euros

05-10-2022

Syntrus Achmea Real Estate & Finance has acquired two retail real estate portfolios worth over €390 million on behalf of the Achmea Dutch Retail Property Fund (ADRPF). Syntrus Achmea already managed both portfolios, owned by a pension fund and an insurer, respectively. The transaction was completed by issuing participation units.

The expansion represents appreciable growth for the ADRPF from €550 million to €940 million. All properties in the two portfolios comply with the ADRPF’s recently revised strategy, which focuses on dominant district centres for daily shopping and retail properties in the best nine city centres in the Netherlands. The properties in the acquired portfolios can be broken down as follows: 60% are in the four major cities (The Hague, Amsterdam, Rotterdam and Utrecht), 14% are in Groningen, Haarlem and Maastricht, while the remaining 26% are district centres catering for daily shopping.

“The confidence expressed in this merger by the existing and two new participants makes us proud,” says Peter Koppers, Fund Manager of the ADPRF. “The merger will create a thriving retail portfolio focused on the future of shopping and is expected to produce substantial diversification and synergy benefits. And we are also bringing together two like-minded investors, who are committed to the fund for the long term. As a result, the ADRPF will be properly positioned for the future.”

In tandem with the purchase of the portfolios, the fund’s structure has been changed from an FBI-regime (Dutch REIT) to a fiscally transparent fund, in anticipation of the government’s intention to abolish FBIs in the near future.

The ADRPF’s portfolio has improved significantly in recent years with sales in Almere, Hilversum, Dordrecht, Rotterdam (Zuidplein) and Beek, among other areas. Successful redevelopments have also been completed in Utrecht (House Modernes, photo) and Rotterdam (Forum). The occupancy rate has risen to 98% in recent years. Last year, the ADRPF became the sector leader in GRESB, the leading sustainability benchmark, with 92 points and the maximum possible five stars.

The parties involved in the transaction received legal advice from Nauta Dutilh and tax advice from KPMG Meijburg. CBRE and Colliers provided commercial advice to the parties.