Savills IM acquires prominent neighbourhood shopping scheme in Amsterdam for European food retail fund
14 October 2021
Savills Investment Management (Savills IM), the international real estate investment manager, has acquired the “Bos en Lommerplein” neighbourood scheme in Amsterdam for EUR 51 million on behalf of its European Food Retail Fund (EFRF) from Lone Star.
The asset is located within the inner ring-road, just a couple of kilometers from Amsterdam’s central station, in a dense urban area going through significant demographic improvement. It comprises approximately 12,000 sq m GLA, with 534 parking spaces. The complex was completed in 2004 and has recently been renovated to create a new central plaza. It is anchored by three supermarkets as well as a number of newly-arrived national retailers.
Kathrin Michalzik, Portfolio Manager at Savills Investment Management:
This neighbourhood scheme is located in a prominent, central location in Bos en Lommer - the economic and social heart of Amsterdam West - and is the first Dutch acquisition for EFRF. The asset offers a strong mix of high-quality tenants such as the parking operator Q-Park, three supermarkets and several convenience stores. The stability and long-term income stream offered make this an ideal addition to the Fund’s portfolio.
Ian Jones, Director of Investment at Savills Investment Management:
Our ability to source this opportunity for the fund ahead of marketing is testament to the advantages of our European network. This acquisition offers immediate high distribution in a leading European capital with upside from ongoing asset management, and sits well alongside our first acquisition of 38 Danish supermarkets last year. We have additional deals under offer in Ireland, Spain and Germany to invest the already committed capital promptly. We are looking forward to a successful first year of operation for EFRF.
The food retail-focused German special fund EFRF was launched in December 2020 with capital commitments of EUR 109 million from six German institutional investors at first closing. The first investment was a Danish supermarket portfolio of 38 urban assets with a total volume of c. EUR 140 million. The assets are let to the food discounter Rema 1000 Denmark on a 15 year fixed-term.
While the main fund strategy is to acquire further supermarket portfolios with lot sizes usually starting at c. EUR 50 million, the fund may also acquire neighbourhood centres, mixed-use urban properties and retail parks under certain parameters. At least 85% of the rental income at portfolio level will come from supermarket/food tenants.
The Fund’s German allocation is relatively low at a maximum of 15%, because the fund is primarily aimed at German institutional investors who are often already invested in comparable German-focused products and are seeking diversification into other European countries.
The defensive food and discount retail segments have shown resilience to disruption. Long-term and inflation-linked leases, tenants with strong credit ratings, extensive immunity to recession and a relatively low susceptibility to e-commerce trends make supermarkets and convenience retail an attractive investment for investors focused on stable, secure, long-term distributions.
Savills IM was advised by Savills (commercial), McDevitt (leasing), Drees & Sommer (technical), CMS (legal) and KPMG (tax).
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"This neighbourhood scheme is located in a prominent, central location in Bos en Lommer - the economic and social heart of Amsterdam West - and is the first Dutch acquisition for EFRF."