What is Retail Estates?
Retail Estates is a public regulated real estate company, also known as an ‘RREC’ or Belgian REIT, that primarily invests in retail properties. But not just anywhere—these properties are mainly located on the periphery of residential areas or along access roads leading to urban centres. The focus is on out-of-town retail properties situated outside the largest cities of Belgium and the Netherlands. The company’s main mission? To assemble, manage, and expand a portfolio of peripheral retail properties that promise steady, long-term growth. This growth stems from both the value of the assets themselves and the income generated through leasing. It’s a smart approach that balances location, quality, and tenant diversification.
Main Benefits of Retail Estates
Retail Estates offers a range of benefits that make it stand out in the real estate market. Here are some key figures and facts that highlight its strength:
- 1023 Number of shops in the portfolio
- 97.26% Occupancy rate, showing strong tenant demand
- 1,231,205 m² Retail area under management
- €2,069,537,000 Fair value of the portfolio
These numbers speak volumes about the company’s scale and stability. High occupancy means less downtime and steady rental income, while the vast retail area and portfolio value indicate significant market presence.
Diversification Strategy
One of the clever moves Retail Estates makes is aiming to have as many different retail sectors as possible represented among its tenants. Why? Because not all retail sectors react the same way during economic ups and downs. Some sectors might take a hit, while others stay resilient. By spreading investments across various sectors, Retail Estates limits the risks tied to negative economic developments. It’s like not putting all your eggs in one basket—smart, right?
Focus on Quality and Location
The company doesn’t just invest anywhere. The focus is on properties located on the outskirts of residential areas or along key access roads to urban centres. These locations are strategic—they attract steady foot traffic without the high costs and competition found in city centres. Plus, the quality of the tenants is a big deal. Retail Estates prefers sectors known for valuable retail outlets, ensuring that the tenants themselves contribute to the portfolio’s long-term success.
Long-Term Growth Approach
Retail Estates isn’t about quick wins. The goal is steady, long-term growth, which comes from two main sources: the increasing value of the assets and the income generated from leasing. This dual approach means the company is building a portfolio that not only appreciates over time but also provides consistent cash flow. It’s a balanced strategy that appeals to investors looking for stability and growth.
Project Impact on Sustainable Development Goals (SDGs)
- SDG 8: Decent Work and Economic Growth – by supporting diverse retail sectors and creating stable leasing income.
- SDG 9: Industry, Innovation, and Infrastructure – through investment in quality retail infrastructure outside major cities.
- SDG 11: Sustainable Cities and Communities – by focusing on peripheral retail locations that serve residential areas effectively.
- SDG 12: Responsible Consumption and Production – encouraging a diversified retail mix that can adapt to economic changes.
Why Retail Estates Matters
In a world where urban centres are often overcrowded and retail spaces can be unpredictable, Retail Estates offers a refreshing alternative. By focusing on peripheral retail properties, it taps into markets that are often overlooked but highly valuable. The company’s strategy of diversification, quality tenant selection, and long-term growth ensures it remains resilient even when the economy faces challenges. So, whether you’re interested in real estate trends or just curious about how retail spaces evolve, Retail Estates is definitely a player to watch.
