Strategy
Vastned’s strategy is aimed at stable and predictable long-term results and improving the quality of its portfolio and organisation.
Strategy
Vastned’s strategy is aimed at stable and predictable long-term results and improving the quality of its portfolio and organisation.
Over 80% of the current portfolio is comprised of property located in the historic centres of selected European cities, including Amsterdam, Utrecht, The Hague, Breda, Eindhoven, Maastricht, Paris, Bordeaux, Lille, Brussels, Antwerp, Ghent, Bruges and Madrid. The rest of the portfolio includes retail parks (mainly in Belgium), supermarkets and other retail properties in smaller cities.
Vastned is diversifying by adding new retailers to its tenant mix, shifting the mix to non-fashion retailers and adding mono brand stores, and inner-city stores of strong urban and suburban brands. Vastned is placing more focus on properties that suit tenants with a strong online presence that are looking to strengthen their brands with physical retail locations; this combined physical and digital (‘phygital’) approach tends to deliver an engaging customer experience, increased visibility and brand loyalty. Vastned also develops more mixed-use assets in city centres, adding offices and apartments on empty floors above shopping floors. Vastned continues to gradually concentrate its European portfolio in so-called ‘winning’ cities, with the eventual aim of focusing its portfolio on between three and four cities per country, except for Spain where it remains concentrated in Madrid.
Vastned manages the portfolio in a hands-on, pro-active and pragmatic fashion, using digitization of processes to increase efficiency and working with a compact team to stay cost-efficient. The company also pursues a conservative financing structure that allows for the implementation of its strategy. The long-term internal target for the loan-to-value is a maximum of 40%. This 3-pillar strategy is summarized below.
Unique portfolio of high street retail and inner-city mixed-use properties, well suited to the current retail environment
Concentration in winning cities (3 to 4 per country)
Improve retail tenant mix by adding tenants with:
- Digital brands and retailers that prioritize ‘phygital’ and ‘buy online pick up in store’
- Strong urban, suburban and mono brands that seek high street presence.
- Increased focus on mixed-use adding residential units and offices
Redevelopment potential and selective investments combined with divestments
Stay a cost-efficient organisation with limited number of FTEs
Digitisation of processes and data-driven working to increase efficiency
A compact team of specialists with a hands-on and result-oriented mentality
Local teams with expert knowledge, experience and extensive networks
Hybrid combination of home and on-site working, moving to more cost-efficient headquarters
Open and inclusive culture
Long-term target to reach a loan-to-value ratio of 40%
Growth of green loans, in line with our Green Finance Framework1)
Share of non-bank loans at least 25%
Ratio fixed vs. floating interest: at least 2/3 fixed interest (max. 1/3 floating)
