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.