Revival of Belgian high streets

In October 2022, Sven Bosman was appointed Operational Managing Director Vastned Belgium after previously working in the position of Finance Director. As such, he is now responsible for Vastned’s entire Belgian property portfolio of over 76,000 square metres across 155 properties in 54 locations. ‘The value of this portfolio is € 321 million, approximately 23% of the total value of the Vastned portfolio, and with an occupancy rate of 99.4% it can clearly be considered stable. In the past, much attention was paid to a good portfolio spread by industry, type of tenant (international versus local chains), tenant size and location in the centres of Brussels, Antwerp, Bruges and Ghent. We have also deliberately invested in out-of-town retail, which are shopping areas located along a number of important Belgian arterial roads. So we are combining city centre fun shopping with optimal car-accessible run shopping. This creates a solid foundation for the future!’

Revival of Belgian high streets

In October 2022, Sven Bosman was appointed Operational Managing Director Vastned Belgium after previously working in the position of Finance Director. As such, he is now responsible for Vastned’s entire Belgian property portfolio of over 76,000 square metres across 155 properties in 54 locations. ‘The value of this portfolio is € 321 million, approximately 23% of the total value of the Vastned portfolio, and with an occupancy rate of 99.4% it can clearly be considered stable. In the past, much attention was paid to a good portfolio spread by industry, type of tenant (international versus local chains), tenant size and location in the centres of Brussels, Antwerp, Bruges and Ghent. We have also deliberately invested in out-of-town retail, which are shopping areas located along a number of important Belgian arterial roads. So we are combining city centre fun shopping with optimal car-accessible run shopping. This creates a solid foundation for the future!’

We had an excellent year last year. With Covid-19 finally behind us, we are clearly seeing rising retail sales in the attractive shopping streets in our most important cities. Footfall increased substantially, with additional spending in fashion, shoes, accessories and luxury items in particular. And it is precisely these rental segments that we focus on; around 70% of our properties is let to this type of tenants. We also find e-commerce businesses now opening experience shops in city centre locations. In addition, the share of food & beverage concepts is increasing. This mix is very popular with consumers. Online retail and physical shop spending is merging seamlessly. There is a real revival of the high streets in Belgium. The great thing is that city centre developments like gaming or urban fitness are also finding their way to upper floors of retail properties. These too are benefiting from the renewed attractiveness of city centres,’ Sven stated.

Tourism rebounding

Sven Bosman: ‘During the Covid-19 pandemic, tourism was under pressure, but now we see it picking up again. Especially now that China is easing its Covid restrictions, we are expecting additional influx. Tourists from Europe, especially from the Netherlands, but also France and Germany, already showed a strong increase in 2022. And tourists make up a major share of visitors to the historic city centres of Brussels, Antwerp, Bruges and Ghent. For example, as a Unesco World Heritage city, Bruges is more popular than ever as a tourist destination. In short, expectations for 2023 are certainly positive. Additionally, municipalities are endeavouring to make city centres even more attractive, not only by demarcating core shopping areas better, but also by curbing inner-city traffic flows. And the proximity of major employers and universities yields additional footfall as well.’

‘The excellent strategic spread of Vastned’s Belgian portfolio ensures stability while also enabling us to respond well to current developments. Our focus on high streets is and will remain the right answer to the changes in the Belgian retail landscape.’

Sven Bosman
Operational Managing Director Vastned Belgium

Out-of-town retail

‘Belgium has a large number of roads with ribbon development along them. This is a phenomenon that has gradually developed over time, and unlike other Vastned countries, we are in a good position to take advantage of this. Shops along such through roads at central locations are referred to as -out-of-town retail. For example, we own almost 50% of the retail property in what is known as the ‘Gouden Kruispunt’ [Golden Crossroads] in Tielt-Winge. This ‘run shopping location’ not only has excellent accessibility, but unlike in city centres, the shops here are every week open on Sundays. With more than 18,000 square metres and an almost perfect mix of big retailers like Aldi, Jysk, Buitenhof, JBC, Kwantum and Krëfel, we are well represented here,’ Sven said.

Sustainability: a win-win

Vastned actually wants to lead the way in sustainability, so we have decided to act together with our tenants. For example by installing solar panels on the roofs of our out-of-town properties. In historic city centres we aim to install more insulation in walls and roofs. Tenants can take further sustainability measures within the property by adapting heating systems, for example. Together, we are creating a win-win situation,’ Sven Bosman concludes.