Eurocommercial is one of Europe’s most experienced property investors, with a current retail property portfolio in France, Italy and Sweden valued at €3.7 billion and a comprehensive programme of extensions and new projects.
The pending addition of Belgium, with the Brussels Woluwe centre acquisition, is
complementary to the portfolio which will increase to approximately €4 billion.
Our focused strategy of acquiring Retail properties in prime locations and continuously improving them, combined with our excellent tenant relationships, has resulted in a consistently high occupancy rate of over 99% - the highest in
the industry – which is integral to our record of long-term rising dividends.
A strong half year – both financially and strategically
? Direct investment result +9.8%
? Net property income +5.9%
? Like-for-like rental growth +4.1%
? Like-for-like retail sales +1.9%
? Net asset value per depositary receipt €44.87 +4.3%
Chief Executive’s Commentary
Our half year to December 2017 has been one of our busiest periods. We have sold, or agreed to sell, properties to a total value of €367 million - with further sales planned. Shortly following the close of the period, we signed a binding agreement to purchase the majority of Woluwe shopping centre – the most important and largest established shopping destination in Brussels.
The centre’s catchment is wealthy and significantly under-shopped, with competition unlikely for many years. A cosmetic refurbishment will be our priority upon completion, and we will immediately commence the planning procedures for the development of a major extension.
Eurocommercial’s high quality assets have continued to deliver excellent results for the first six
months. Vacancy levels remain under 1% of rent, while retail sales have been positive in all countries for the first six months. Rental growth – both from indexation and renewals and relettings – has been particularly strong, reflecting the sound basis of the retail sector in Europe, quite unlike the over-supplied equivalent in the USA.
The proceeds from the sales of 421, in Göteborg, and Mellby, in Laholm, were reinvested in the post-period acquisition of Valbo shopping centre, located outside Gävle in central Sweden, which has significant opportunities for adding value.
Our extensions and refurbishments at Hallarna, MoDo and Grand A were all completed on schedule, and work proceeds at C4 in Kristianstad as planned, with the centre already over 80% pre-let. In Italy, we are working on extensions at Fiordaliso, Curno, Collestrada, I Portali and Cremona.
We look forward to the second half of our financial year with enthusiasm and confidence.
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