Redevco wants to diversify
Real estate investment manager Redevco aims to increase its assets under management to ten billion euros by 2025 and diversify beyond retail uses.
A majority of investment vehicles are being considered, and the company is also opening up to other like-minded investors, Redevco says. The initial focus will be on joint ventures. Currently, funds from third-party investors account for about 40% of the real estate assets under management with 2.8 billion euros.
By partnering with other investors and diversifying into real estate sectors such as offices and last-mile logistics, Redevco aims to build on the success it has already achieved in the residential segment over the past 18 months, says CEO Andrew Vaughan. Future investments are to focus largely on mixed-use urban locations.
Redevco's core portfolio consists of retail properties: at the end of 2019, the company managed a total of 301 retail properties across Europe - 60% less than in 2011, when the company had started to dispose of properties that were no longer in line with its investment strategy at the time. The number of assets under management decreased by 23% in the last three years, while at the same time the value of the portfolio increased from €7.3 billion to €7.5 billion (end 2019).
Meanwhile, less than 50% of rental income came from fashion; at 16%, leisure segments such as theaters, cinemas and restaurant concepts represented the fastest-growing share in rental income, Redevco said. (ah)
