Portfolio Netherlands
Portfolio development
The current situation requires active asset management of the portfolio. Pro-actively anticipating tenants' needs is essential. Züblin was able to conclude a number of new lease contracts, including a 1300 m² turn key lease in Zekeringstraat 41, Amsterdam. In addition the company managed the whole fit-out of the property to the tenant's full satisfaction and also extended four major lease contracts in the Amsterdam region, with a total floorspace of 10000 m². The building in De Bilt was extensively refurbished, which led the main tenant to extend their existing contract.
Despite the difficult market conditions the properties in The Hague, Nieuwegein and Amsterdam (totalling approx. 14500 m²) and one logistics property in Moerdijk (approx. 120298 m²) have been sold. Together these sales led to a fall in the vacancy rate to 13.0%. Nevertheless the bad market situation led to a further 10% decline in the value of the Dutch portfolio.
Market development
The recovery in the Dutch office market lagged well behind expectations in 2011. Although the number of transactions increased the net take up in m² was down slightly on 2010. Vacant space is still well over 7 million m² which represents a vacancy rate of 14%. Current trends in the rental market are towards more flexibility, greater environmental sustainability and an overall decrease in usable square meterage. The still high vacancy rates have led to a further decline in rents and the company believes that this trend still has further to run. While tenants expect shorter lease periods and transparent lease contracts, ever greater incentives are also being offered over the entire length of lease contracts. Moreover, conversion of offices into residential use is becoming more and more popular.
The investment market suffered an unexpectedly sharp fall of 25% in 2011 compared with 2010 due to the poor economic environment in the Netherlands, the euro crisis and the lack of adequate finance. A recovery is not expected in 2012. Investors have moved away from offices to retail and residential, which are seen as safer asset classes in these turbulent times.
Portfolio overview
| CHF/EUR in million | 31.3.2012 | 31.3.2011 |
|---|---|---|
| Market value in CHF | 122.2 | 178.9 |
| Market value in EUR | 101.5 | 137.6 |
| Annual rental income in CHF | 11.2 | 15.8 |
| Annual rental income in EUR | 9.3 | 12.1 |
| Vacancy rate | 13.0% | 13.7% |
Major tenants
| Tenant | Sector | % share of annual rental income | |
|---|---|---|---|
| Portfolio Netherlands | Total | ||
| Groningen Railport Exploitatie Maatschappij B.V., Veendam | Logistics | 19.8% | 3.5% |
| Vos Logistics Nederland B.V., Oss | Logistics | 10.2% | 1.8% |
| VSL Holding B.V., Oss | Llogistics | 10.1% | 1.8% |
| Manpower Nederland B.V., Amsterdam | Temporary labor | 6.0% | 1.1% |
| Facilicom Bedrijfsdiensten B.V., Amsterdam | Services | 4.2% | 0.7% |
| Total | 50.3% | 8.9% |
Lease contract analysis EUR in million
| Prop. No. | City, address | Date of acquisition | Year of construction/ renovation | Annual rental income CHF 1000 | Vacancy (CHF) % | Ownership | Discount rate % | Plot size m2 | Office m2 | Retail m2 | Trade/ logistics m2 | Other space m2 | Total usable space m2 | Vacancy m2 | Vacancy (m2) % | No. of parking spaces |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Office | ||||||||||||||||
| 45 | Amsterdam, Zekeringstraat 1–23 | 1.1.2000 | 1995 | 1 410 | 8.8 | △ | 8.8 | 13 068 | 8 369 | − | 3 872 | − | 12 241 | 1 326 | 10.8 | 233 |
| 46 | Amsterdam, Zekeringstraat 45–47 | 1.1.2000 | 1992 2003 | 654 | 0.0 | △ | 9.2 | 5 370 | 3 052 | − | 1 477 | − | 4 529 | − | 0.0 | 118 |
| 47 | Amsterdam, Zekeringstraat 39–43 | 1.1.2000 | 1992 2003 | 629 | 25.6 | △ | 8.7 | 9 030 | 4 553 | − | 2 297 | − | 6 850 | 2 399 | 35.0 | 129 |
| 48 | Diemen, Diemerhof 10–12 | 1.1.2000 | 1990 | 145 | 40.9 | □ | 8.6 | 2 668 | 2 193 | − | − | − | 2 193 | 978 | 44.6 | 57 |
| 49 | Diemen, Diemerhof 16–18 | 1.1.2000 | 1990 2009 | 675 | 0.0 | □ | 8.3 | 3 943 | 3 672 | − | − | − | 3 672 | − | 0.0 | 117 |
| Total region of Amsterdam | 3 512 | 11.4 | 34 079 | 21 839 | − | 7 646 | − | 29 485 | 4 703 | 16.0 | 654 | |||||
| 50 | Dordrecht, Stationsweg 4 | 1.7.1998 | 1962 | 548 | 18.2 | □ | 8.7 | 3 001 | 3 817 | − | − | − | 3 817 | 1 011 | 26.5 | 70 |
| 51 | Gouda, Tielweg 6 | 1.7.1998 | 1990 | 213 | 23.9 | □ | 8.7 | 1 800 | 2 097 | − | − | − | 2 097 | 619 | 29.5 | 56 |
| 52 | Rotterdam, Schiekade 34 | 1.7.1998 | 1961 2000 | 675 | 36.4 | □ | 8.4 | 2 298 | 7 029 | 1 594 | − | − | 8 623 | 4 010 | 46.5 | 46 |
| Total region of Rotterdam | 1 436 | 28.6 | 7 099 | 12 943 | 1 594 | − | − | 14 537 | 5 640 | 38.8 | 172 | |||||
□ Ownership of 100%
○ Condominium ownership
△ Leasehold
| Prop. No. | City, address | Date of acquisition | Year of construction/ renovation | Annual rental income CHF 1000 | Vacancy (CHF) % | Ownership | Discount rate % | Plot size m2 | Office m2 | Retail m2 | Trade/ logistics m2 | Other space m2 | Total usable space m2 | Vacancy m2 | Vacancy (m2) % | No. of parking spaces |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 53 | De Bilt, Utrechtseweg 370 | 1.7.1998 | 1982 | 317 | 0.0 | □ | 8.6 | 1 998 | 2 067 | − | − | − | 2 067 | − | 0.0 | 37 |
| 54 | Nieuwegein, Meentwal 1 | 1.7.1998 | 1991 | – | 100.0 | □ | 8.7 | 1 160 | 1 876 | − | − | − | 1 876 | 1 876 | 100.0 | 0 |
| 55 | Utrecht, Kaap Hoorndreef 10–14 | 1.7.1998 | 1972 2001 | 232 | 40.1 | □ | 8.6 | 606 | 3 344 | − | − | − | 3 344 | 1 432 | 42.8 | 0 |
| 56 | Utrecht, Kaap Hoorndreef 66–78 | 1.7.1998 | 1975 | 354 | 21.0 | □ | 8.9 | 606 | 3 150 | − | − | − | 3 150 | 866 | 27.5 | 0 |
| Total region of Utrecht | 903 | 29.9 | 4 370 | 10 437 | − | − | − | 10 437 | 4 174 | 40.0 | 37 | |||||
| 57 | Huizen, Huizermaatweg 9–37 | 1.7.1998 | 1986 | 509 | 0.0 | □ | 9.0 | 950 | 3 068 | − | − | − | 3 068 | − | 0.0 | 0 |
| 58 | Zeist, Huis ter Heideweg 30–40 | 1.7.1998 | 1980+2001 | 363 | 42.1 | □ | 8.3 | 6 940 | 4 637 | − | − | − | 4 637 | 2 302 | 49.6 | 92 |
| Total other regions | 871 | 23.2 | 7 890 | 7 705 | − | − | − | 7 705 | 2 302 | 29.9 | 92 | |||||
| Total office | 6 722 | 20.0 | 53 438 | 52 924 | 1 594 | 7 646 | − | 62 164 | 16 819 | 27.1 | 955 |
□ Ownership of 100%
○ Condominium ownership
△ Leasehold
| Prop. No. | City, address | Date of acquisition | Year of construction/ renovation | Annual rental income CHF 1000 | Vacancy (CHF) % | Ownership | Discount rate % | Plot size m2 | Office m2 | Retail m2 | Trade/ logistics m2 | Other space m2 | Total usable space m2 | Vacancy m2 | Vacancy (m2) % | No. of parking spaces |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Logistics | ||||||||||||||||
| 59 | Oss, Waalkade | 17.2.2003 | 1974–1990 | 2 278 | 0.0 | □ | 9.2 | 127 683 | 1 193 | − | 48 165 | 32 892 | 82 442 | − | 0.0 | 0 |
| 60 | Veendam, Spoorhavenweg | 17.2.2003 | 1994–99 2010 | 2 216 | 0.0 | △ | 9.1 | 122 621 | 399 | − | 90 205 | − | 90 604 | − | 0.0 | 0 |
| Total logistics | 4 494 | 0.0 | 250 304 | 1 592 | − | 138 370 | 32 892 | 173 046 | − | 0.0 | 0 | |||||
| Total portfolio Netherlands | 11 216 | 13.0 | 303 742 | 54 516 | 1 594 | 146 016 | 32 892 | 235 210 | 16 819 | 7.2 | 955 | |||||
□ Ownership of 100%
○ Condominium ownership
△ Leasehold