Report of the Board of Directors

The Fund’s optimisation strategy

To achieve its targets, the Retail Fund aims to optimise its portfolio through targeted acquisitions, the redevelopment of core assets and the disposal of non-core retail units. Taking into account the trends in the retail market and the demographic outlook, we believe that the current competitive market requires specialised, well-positioned retail assets. Our strategy is to focus on what we believe will be the two decisive elements in the future of retail:

  • Experience: High street portfolio, focus on A1 locations in major shopping cities
  • Convenience: District shopping centres, focus on catchment areas and strong tenant mix

In addition, the key building blocks in the Fund’s strategy are:

  • Focus on retail tenants less sensitive to economic cycles
  • Redevelopment: expansion/redevelopment of well-located shopping centres and retail units to meet the quality requirements of modern retail
  • Active asset management: maintaining high occupancy levels by developing close relationships with tenants and by ensuring the right tenant mix per catchment area

Strategic actions in 2014

  • Strengthened ‘Experience’ portfolio, through acquisitions in A1 locations
  • Strengthened ‘Convenience’ portfolio, through acquisitions of local shopping centres that meet the needs of today’s consumers
  • Divested non-core assets
  • Continued to optimise the standing portfolio through redevelopments
  • Initiated the development of an online platform for retail tenants in shopping centres
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