Investment booming, occupier demand blooming

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1 PROPERTY TIMES Investment booming, occupier demand blooming Belgium Retail Q January 216 Contents Economic overview 2 Belgian retail market 4 Investment market 6 Shopping centres 8 Main streets 1 Out of town retail 12 Authors Shane O Neill Research Analyst + 32 () shane.oneill@cushwake.com Jef Van Doorslaer Director, Research - Belgium & Luxembourg +32 () jef.vandoorslaer@cushwake.com Cédric Van Meerbeeck Associate Director, Head of Research Belgium & Luxembourg + 32 () cedric.vanmeerbeeck@cushwake.com 215 is an all-time record year for investment in Belgian retail with MEUR invested across all retail segments (Figure 1). The largest investment transaction over Q4 was the acquisition of Galéries Saint Lambert in Liège by AG Real Estate. Foreign investors also played a major role in the interest in Belgian retail, representing about 63% of total investment volumes. Yield compressions have taken place in every retail segment due to the increased competition stemming from this wave of overseas investments. Take-up figures for 215 (337, sq m) reflect good levels of leasing activity. Activity picked up over the second half of the year driven by international brands. Rents are picking up again on AAA-locations as there is good demand for flagship stores: with e-commerce progressing these high visibility shops have more and more an additional marketing and showroom function. For example Toison d Or in Brussels uptown has attracted tenants such as Apple and Marks & Spencer. Out of town retail schemes benefited from the upgrading of architecture and clusters of greater quality, with classical inner town brands like H&M progressing into the periphery. There are more projects in the pipeline on the Brussels and Walloon side than in Flanders. Notable deliveries in 215 include the Toison d Or in Brussels uptown and Vrijdagmarkt Ghent for main streets and be-mine in Beringen, Leonardo in Evere, or Mains et Sabots Estaimpuis in the out of town retail segment. The market is heading for a busy 216 with two new shopping centres (Rive Gauche in Charleroi and Docks Bruxsel in Brussels) as well as significant out of town retail developments by IKEA in Hasselt and Mons. Figure 1 Retail investment volumes Belgium, MEUR Contacts Magali Marton Head of Research EMEA magali.marton@cushwake.com Joanna Tano Head of Operations EMEA Research joanna.tano@cushwake.com cushmanwakefield.com PROPERTY TIMES 1

2 Retail Belgium Q4 215 Economic climate Economic recovery remains intact despite the terrorist alert in Belgium. Latest available figures suggest that the GDP growth will stand at 1.4% for the year 215, The November terrorist attacks in Paris had repercussions in Belgium in Q4, leading to disruption of economic activity in Brussels. However, as in France, we expect this impact to be short-lived. The outlook for 216 also stand at 1.4%, rising to 1.6% per year further out. This will leave Belgian growth slightly behind the Eurozone average. In the medium term, Belgium faces a number of structural constraints on growth, leaving the GDP growth below the precrisis level of 2.3% (Figure 2). The consumer confidence index has increased slightly over the last quarter, recording its highest level since the beginning of 211. Despite the terrorist alerts in November, consumers continue to grow more confident regarding the global economic climate of the country and the fear of a new rise in unemployment has decreased during the last three months. Encouragingly, the business confidence indicator also recorded a positive evolution since September. It also reached its highest level since the beginning of 211, mainly helped by a rebound in investment over the last quarter. The expected rise of demand for corporate services had positive impacts. Business and consumer sentiments should remain relatively high in the coming months and point to a reasonable growth outlook heading into 216 (Figure 3). Figure 2 GDP growth 3% 2% 1% % -1% -2% Figure 3 Source: Oxford Economics, December 215 Consumer and business confidence indices Brussels Flanders Wallonia Unemployment is expected to decrease at a faster pace in Brussels as from 216. Consumer confidence Business confidence At the end of 215, the unemployment rate stands at around 8.7% globally for Belgium. Linked to the economic recovery, a downside movement is expected to start as from 216 and the pace should accelerate in 217 and 218. The unemployment rate is expected to reach 7.8% in 218 but very important disparities between regions will still be observed (Figure 4). In Flanders, the unemployment rate should stand at 4.5% in 218, coming from a current rate of 5.1%. In Wallonia, this rate could reach 1.7% compared to 12% in 215. Source: National Bank of Belgium, December 215 Figure 4 Unemployment rate 2% 15% 1% Remaining at high level, the unemployment rate is forecasted to decrease at a faster rate in Brussels. Standing currently around 18.6%, it could decrease down to 17.2% in 218. The decrease of the employment taxation is expected to have positive impacts on job creation in Belgium. 5% % Brussels Flanders Wallonia Belgium Source: Oxford Economics, December 215 cushmanwakefield.com PROPERTY TIMES 2

3 Retail Belgium Q4 215 High population growth Together with the UK and Sweden, Belgium has one of the highest population growth projections in Europe. Over the period almost 5 extra inhabitants per year will support retail sales considerably. The small dip in population growth in the period (see Figure 5) may have to be reviewed upwards following the expected immigration of a growing number of asylum seekers. Brussels (and other central Belgian areas) are the fastest growing regions in terms of population; Brussels is among the fastest growing cities in Europe. Disposable income picking up by In 216, growth in disposable income should remain constrained by a further rise in inflation. The growth rates of the disposable income In Belgium since the 28 crisis were below the 3% margin. It is expected that these growth rates will finally be picking up again over 216 to go over the 3% bar in the period, exceeding the equivalent figures for the Eurozone. Healthy retail sales growth. The forecasted demographic growth will obviously contribute to retail sales growth. Despite forecasted to undergo a slowdown of growth in 215 (relative to a buoyant 214), annual retail sales figures do not translate the important boost to figures in Q3 following a sluggish start to the year. Indeed retail sales expanded over the second half of 215, supported by the boost to real disposable incomes from low inflation. Forecasted growth for 215 varies between.17% (Brussels) and.88% (Flanders) (Figure 7) the global rate for Belgium is.72%.furthermore, increased and steady retail sales growth forecasts (albeit at different rates from region to region) between 216 and 218 lend credence to the development of retail schemes to answer the increase of consumer demand. Figure 5 Yearly Population growth projection Belgium Source: Federal Planning Bureau, December 215 Figure 6 Growth of Disposable Income Belgium 6% 5% 4% 3% 2% 1% % Source: Oxford Economics, December 215 Figure 7 Location-based retail sales growth 2.% 1.5% 1.%.5%.% -.5% -1.% -1.5% Brussels Flanders Wallonia Source: Oxford Economics cushmanwakefield.com PROPERTY TIMES 3

4 Retail Belgium Q4 215 Belgian retail market 215 is an all-time record year for investment in Belgian retail. At the end of Q4, 215 is an absolute all-time record year for investment in Belgian retail, with more than EUR 2.15 bn invested and activity reaching record levels in every retail segment. Foreign players formed the basis for this interest, as they represented about 63% of total investment volumes. Belgian players focused their know-how on investments in main streets and out of town retail. Due to increased competition stemming from the wave of overseas investments, yield compressions have taken place in every segment. International brands influencing demand for spaces. Despite good take-up figures, the overall sentiment in the retail market has cooled over 215: the turnover and margins of many retailers are under pressure, which was reflected in several bankruptcies (Mer du Nord, O Cool, Mexx ). International brands are having a bearing on main street retail where they are opting for large spaces in new projects able to (re-)generate footfall and consumer activity, as well as contributing to an upgrade of out of town retail where they are increasingly present. The clear upgrading of formats, architecture and locations in the out of town retail market means outlets are increasingly moving away from the classic shoe box type of format thanks to designs of greater quality. This process should also benefit from the regionalisation of the law on commercial establishments (see comment on this page). As a result, out of town retail is gradually shedding its discount image. Significant new developments added to retail landscape as market is braced for a busy has witnessed notable deliveries, in out of town retail and main streets in particular, with the completion of the Toison d Or in the case of the latter notable for being the location chosen for Belgium s first Apple Store as well as the return of Marks & Spencer after an absence of more than a decade. The out of town retail market has also been busy with deliveries such as be-mine in Beringen and Leonardo in Evere (Map 1). Furthermore, the market is braced for a busy 216 with two new shopping centres (Rive Gauche in Charleroi and Docks Bruxsel in Brussels) as well as significant out of town retail developments by IKEA in Hasselt and Mons (Map 2). Regionalisation of legislation on commercial establishments Regional governments have inherited the competence for establishing rules on commercial premises from the federal government. Previously, both federal and regional bodies were involved in this process, designed to prevent the proliferation of increasingly ageing small retail warehouses, already scattered willy-nilly along Belgium s national roads. Brussels and Wallonia are close to adopting new regional laws. Both insist on consumer protection, integration in the urban environment, and smooth mobility. Discussions are ongoing in Flanders while the previous federal law remains applied. In Brussels, communes are responsible for delivering the sole required planning permit for projects of less than 1, sq m. For larger surfaces, the Region is the relevant body. Previously socio-economic as well as planning permits were required. In Wallonia, communes are responsible for delivering the sole required planning permit for projects between 4 sq m and 2,5 sq m; the Region is the relevant body for premises that are larger than 2,5 sq m. In Flanders, the new decree, voted 18/12/215, is merging retail permits with the urban planning permit and environmental permit into a new unique permit system; local communes have a large decision power. The general policy is clearly to favour city centre developments and to limit out of town projects. Secondary streets oversupply The overall retail vacancy in Belgium grew to 7.6% in 215 according to Locatus. In A locations, this vacancy amounts to approximately 5%, generally deemed a healthy level, enabling rotation and further growth. However in more tertiary C locations, overall vacancy levels actually amount to up to 19%, with smaller cities suffering more than larger and top cities. This is also the case in towns such as Verviers and Mons where main- and secondary streets vacancy levels suffer from competition generated by nearby large-scale retail parks or shopping centres (for which vacancy rates amount to 5% to 6% on a national level) as well as further expansion projects for such schemes. It would make sense that Belgian politicians and retailentrepreneur organisations like Unizo and UCM develop a policy that can organise a smoother transition of streets with high vacancy problems to help reinforce core city centre main street areas. They should enable future developments to take the delicate balance between the different retail segments into account, especially in inner cities, where the risk of oversupply is further threatened by the tightened legislation on commercial establishments (see comment above). cushmanwakefield.com PROPERTY TIMES 4

5 Retail Belgium Q4 215 Map 1 Retail deliveries 215 Size (sq m) Shopping centres Main streets Out Of Town Retail Kilometers Cushman & Wakefield Sources : ESRI, Teleatlas, BrusselsUrbis Map 2 Retail projects 216 Size (sq m) Shopping centres Main streets Out Of Town Retail Kilometers Cushman & Wakefield Sources : ESRI, Teleatlas, BrusselsUrbis cushmanwakefield.com PROPERTY TIMES 5

6 Retail Belgium Q4 215 Investment market All-time record activity on the Belgian investment market in 215. Globally in Belgium, the investment market witnessed impressive activity. Since the start of the year, more than EUR 4bn have been invested in all commercial real estate sectors, reaching volumes comparable to top investment years before the 28 crisis (Figure 8). Important transactions have been observed in every sector but it is mainly the retail investment market which performs at a record level, as the Wijnegem and Waasland shopping centres, an Equilis out of town retail portfolio (EUR 75 m), the Constellation main streets portfolio (EUR 8 m), the Galéries St Lambert (approx. EUR 133 m), and the Basilix Shopping Centre (EUR 65 m) contribute to this vast volume. As a result of this impressive activity, the total volume invested in the retail sector is at a record EUR 2.15bn. Intense activity in every retail segment, leading to a record year. Intense activity has been observed in every retail segment in Belgium, leading to the impressive EUR 1.7bn already invested in retail since the start of the year (Figure 9). Not surprisingly, the pan-european Celsius portfolio, purchased by AEW and the Chinese investor CIC, with trophy assets such as the Wiinegem Shopping Centre and Waasland Shopping Centre (combined value of approx. EUR 865 million), amount to a large part of the total invested so far this year. Other shopping centres also changed hands in 215, such as the Galeries Saint-Lambert in Liège sold by CBRE GI to AG Real Estate (Q4; approx. EUR 133 million); the Basilix Shopping Centre was the first acquisition of the French investor Primonial in Belgium (EUR 65 m); the Feest & Cultuurpaleis in Oostende, acquired by Union Investment for EUR 36 m. Investment activity is also at a record level in the Main Streets segment (EUR 552 m) since the start of the year. Transactions are observed all over the country, though absent from the Rue Neuve in Brussels. The most important transaction is the Constellation portfolio (Vrijdagmarkt and Langemunt in Ghent, Bruul in Mechelen), purchased by CBRE Global Investors for EUR 79 m. Though at a lower level, investment since the start of the year in Out of Town Retail is at a high of EUR 42 m; only once in Belgian history more Out of Town retail investment volume was recorded in 21 (due to the acquisition of the GIB portfolio by Redevco, still the largest retail transcation ever in this market). Three different portfolios representing more than EUR 24 m invested, (the so-called Rockspring portfolio, an Equilis portfolio and a Redevco portfolio) were acquired by Belgian or UK investors. Figure 8 Breakdown of Belgian investment volumes by asset type, MEUR Figure 9 Breakdown of investment volumes by retail segment, MEUR Brussels office Regional office Retail Industrial Healthcare Other Shopping Centre Main Street Out of Town Retail cushmanwakefield.com PROPERTY TIMES 6

7 Retail Belgium Q4 215 Foreign players represent about 63% of the total invested volumes over 215. The retail market in 215 is characterised by a very strong foreign investor presence. Belgian players represent only 37% of total invested volumes (Figure 1). Thanks to the approx. EUR 865 m purchase of Wijnegem (5%) and Waasland Shopping Centres, the share of Asian investors stands at some 4% of the total invested volume, even though they were involved in one major deal since the start of the year. European investors like UK (CBRE Global Investors), German (Union Investment), Dutch (Vastned Retail) and French (Primonial or Techeyné) investors are also active on the Belgian retail market, with more than EUR 414 m invested. US players continue to be present in 215 with two acquisitions by Fidelity Worlwide, the retail park Les Dauphins and the main street asset located in Waterloo (Chaussée de Bruxelles ) totaling more than EUR 63 m. Foreign investors present in every segment, Belgian players focused on main streets and out of town retail. It was a belgian player, AG Real Estate, that finalized the acquisition of Galeries St Lambert in Q4, but most other shopping centre property was bought by foreign investors, like French (Basilix Shopping Centre), German (Feest & Cultuurpaleis) or French/Chinese (Wijnegem & Waasland Shopping Centres) investors (Figure 11). The size and the specificities of these assets attract more and more foreign investors who are attracted by good Belgian retail property that is seen as risk averse, leading to stronger competition and yield compression. Conversely, these foreign investors are less active in the main street segment, but still Belgian players have to compete with UK, US or Dutch investors there also to acquire key positions. Strong competition leads to sharp yield compressions in every segment. After a long period of stability in every retail segment, we observe a sharp yield compression since the end of 214 in most prime retail segments. The compression is the most important in the shopping centre segment where prime yields are currently to be found at around 4.25% (coming from approx. 5.4% one year ago). Though more limited, the compression is also observable in the high street segment (Figure 12) where prime yields pass below the cap rate of 4% to stand at around 3.75%. Some very specific assets are even purchased at a yield around or below 3% (trophy assets or key positions in the most prestigious areas). Prime yields for out of town retail stand around 5.75%, against 6.25% one year ago. Figure 1 Breakdown of investment volumes by purchaser nationality 1% 8% 6% 4% 2% % Figure 11 Breakdown of investment by nationality and retail segment, 215 Figure Belgium China France Germany Ireland Italy Luxemburg Netherlands UK US UK Netherlands Luxemburg Ireland Germany France China Belgium US % 2% 4% 6% 8% 1% Main street Shopping centre Out of Town Retail Prime yields top main streets Belgium 8% 7% 6% 5% 4% 3% Bruxelles - Rue Neuve Liege - Vinave d'ille Brugge - Steenstraat Antwerpen - Meir Gent - Veldstraat Hasselt - Hoogstraat cushmanwakefield.com PROPERTY TIMES 7

8 Retail Belgium Q4 215 Retail take-up Healthy take-up similar to Overall take-up in Belgium was almost 34, sq.m. (Figure 13) less or more at the same level as previous years. A whole series of transactions that were published half January 216 will be counted in the 216 take-up, as we did for the transactions published half January 215. Retailers were rather hesitating to take decisions during the first half of the year, but activity seemed to be picking up, especially during Q4 when more than 112, sq m transactions were published. Figure 13 Take-up retail Belgium ( sq. m.) Shopping centres Healthy take-up similar to Main Street Out of Town retail Shopping Center Take-up in shopping centres amounted to 46, sq m in the over 215. It was not expected that the strong demand of 214 (65,5 sq m) would be be matched, 215 should be a good year, more in line with the period in terms of the take-up volume. Indeed, the end of 214 saw the beginning of the commercialisation of Docks Bruxsel boost annual figures as well as almost a dozen of deals in the Wijnegem Shopping Centre. Brussels shopping centres are busy. This year s current top ranked shopping centre is Docks Bruxsel with 27 deals (where more than thirty were sealed in the last quarter of 214) (Figure 14). Docks is understandably the highest ranked due to its looming delivery, expected in September of 216. Several Cora centres figure in the ranking; Cora Anderlecht stands out, thanks in part to retentions. Brussels shopping centres compose more than half of this ranking with more projects (Mall of Europe, and UPlace on the outskirts of Brussels) composing the pipeline. Figure 14 Top performing shopping centres by number of deals in Openings Renewals cushmanwakefield.com PROPERTY TIMES 8

9 Retail Belgium Q4 215 Wallonia and Brussels have more projects in the pipeline than Flanders. One renovation of note, Stockel Square, took place in 215. Many refurbishments and deliveries are however awaited in 216: Docks Bruxsel ( 45, sq m) in Brussels Dok Noord (18, sq m) in Ghent Post Plaza refurbishment (3, sq m) in Ghent Les Grands Prés extension (6, sq m) in Mons Rive Gauche (38, sq m) Charleroi Docks Bruxsel (41, sq m) in Brussels (see comment below) In the longer term, AG Real Estate s The Mint (15, sq m Centre Monnaie refurbishment) in Brussels and Wereldhave Belgium s Les Bastions extension (14,5 sq m) in Tournai should be completed in 217. Further down the line, initial permits for the 21, sq m extension of L Esplanade in Louvain-la-Neuve have been granted and Wilhelm & Co s La Strada (38,5 sq m) in La Louvière awaits a go-ahead in 216. There are as yet no definitive outcomes on the Mall of Europe (NEO Heysel) and Uplace projects in Brussels northern periphery; the Conseil d Etat supreme court has recently advised in appeal procedures and the Flemish regional government gave its go for the local urban planning scheme, which is an important step forward for the Uplace project. Wallonia and Brussels have more projects in the pipeline than Flanders: in the pipeline we only expect only one major development in the northern part of Belgium to be delivered, the inner city Kanaalkom project in Hasselt. Figure 15 Prime rents: Belgian shopping centres, EUR/sq m/year (shops of 15 to 2 sq m with 6m frontage) Antwerpen - Wijnegem Shopping Sint-Niklaas - Waasland Shopping LLN - L'esplanade Bruxelles - Woluwe Shopping Bruxelles - Westland Shopping Liège - Médiacité W Shopping and Wijnegem prime rents are the highest. Shopping centre rents remain relatively high in Belgium, although they have been under downward pressure over recent quarters. The highest rents are noted in the W Shopping (Woluwe) at EUR 1,3/sq m/year, with Wijnegem Shopping not far behind with EUR 1,2/sq m/year (Figure 15). Together with Médiacité, L Esplanade has recorded the most significant rental growth over the past two to three years, respectively coming from EUR 6- and EUR 8/sq m/year in 211 to EUR 7- and EUR 95/sq m/year currently. Docks Bruxsel, the newest large shopping centre (extensions excluded) on the Brussels landscape in more than a decade is already over 85% pre-let ahead of its delivery in the second half of 216. Given the UPlace and Mall of Europe (Neo) projects located in the northern periphery of Brussels, Docks Bruxsel s development is a sound feat which provides part of a solution to demand for a shopping centre in the northern part of Brussels. Furthermore its arrival is timely in light of the significant revival underway along the canal. We therefore expect it to garner significant investor interest in light of the booming retail investment market in Belgium. cushmanwakefield.com PROPERTY TIMES 9

10 Retail Belgium Q4 215 Main streets International brands drive take-up with large deals. Figure 16 Take-up: main streets The main streets take-up over 215 was approx. 126, sq m (Figure 16). Take-up in the high street is clearly up since the dip in 212, even though the number of deals is not fully following pace, pointing towards an increase in the size of surfaces required by retailers. This chimes in with the fact that international retailers such as Primark, Marks & Spencer, Zara and Uniqlo often thirsty for large spaces have been a main source of demand, and may be a source of concern to smaller independent Belgian retailers Most activity on Meir. Antwerp s Meir currently ranks joint highest among all Belgian main streets in terms of number of deals (Figure 17). Indeed Antwerp s status as Belgium s fashion capital is also underlined by the presence of Huidevettersstraat in the ranking of top performing main streets. Twenty deals have so far taken place in Big Six locations in 215. Seven of these deals took place on the Meir in Antwerp, including lettings by H&M and Uniqlo (1,9 sq m and 1,4 sq m respectively). Veldstraat Ghent was also very active with four leases for 2,97 sq m, including WE (2,112 sq m). Hasselt s Hoogstraat and Steenstraat Brugge both recorded three lettings and a renewal, while Vinave d Île in Liège only recorded one transaction in 215. Figure 17 Top performing main streets by number of deals in sq m Deals (right hand scale) Projects aiming to create homogenous shopping experiences. Take Up Nbr of transactions This year s standout main street delivery was Prowinko s Toison d Or in Brussels, providing 13, sq m for brands including Bodum, Zara, Marks & Spencer and Apple (see spotlight below). Several projects on main streets have been announced in 215, with many focusing on Ghent where in excess of 15, sq m have been announced this year, often combined with residential functions. These projects are leading to a more homogeneous shopping experience on Ghent s previously fragmented retail landscape. In addition to MG Real Estate s Vrijdagmarkt / Langemunt project where Primark has opened a 4,5 sq m store, these projects include Ghelamco s Tribeca project (6, sq m retail) and Matexi s 5,5 sq m Kouterdreef project (opening in the first semester of 216) with Colruyt s CRU line already earmarked as an occupier. Main- and secondary streets in towns such as Mons and Verviers are currently suffering from poorly poised demand biased towards newer peripheral shopping developments and could benefit from a more continuous and coherent retail landscape, as well as more complementarity with said newer developments. Marks & Spencer and Apple s arrival in the Toison d Or represents a coup for Prowinko due to the former s return to Belgium following a 14 year absence and a first ever and long-awaited Belgian store in the case of the latter. These openings have been greeted enthusiastically by consumers, underlined by the 4, daily visitors footfall increase measured by Atrium (the Brussels region trade agency) in the Avenue de la Toison d Or Porte de Namur Brussels uptown area. These brands arrival are expected to boost the prospects of retail development in the area in the long term. cushmanwakefield.com PROPERTY TIMES 1

11 Retail Belgium Q4 215 Prime rents in top main streets are picking up again. Rue Neuve in Brussels and Antwerp s Meir lead the main streets prime rent ranking with top levels of EUR 1,85/sq m/year. In Flanders, Veldstraat in Ghent as well as Steenstraat in Bruges encountered corrections over the last year as a consequence of projects emerging in alternative locations such as Langemunt in Ghent, (Figure 18). But now most top streets see rents picking up again over the last quarters, driven by good demand for flagship stores: with e-commerce progressing these high visibility shops have more and more an additional showroom and marketing function. In secondary and even more tertiary streets, vacancy levels are growing and rents are mostly down. So primary locations in top and midsized cities perform well, but smaller regional towns have it difficult to compete: relatively high vacancy levels and competition of out of town retail continue to put downward pressure on rents in these locations. Figure 18 Prime rents: main streets, EUR/sq m/year (shops of 15 to 2 sq m with 6m frontage) Brussels - Rue Neuve Gent - Veldstraat Liege - Vinave d'lle Brussels - Avenue Louise Antwerpen - Meir Brugge - Steenstraat Hasselt - Hoogstraat cushmanwakefield.com PROPERTY TIMES 11

12 Retail Belgium Q4 215 Out of Town retail Slight decrease of activity in 215. The market for retail parks and out of town stores is doing relatively well although less boisterous than over the period, with take-up totalling 166, sq m at the end 215 (Figure 19). High street brands boost out of town upgrade. Demand is evolving towards high scale out of town retail with more and more high street names like H&M found in retail park environments where they can reach a further their reach on consumers and benefit from much lower rents than in main streets. As a result, there is a clear upgrading of formats, architecture and locations happening in this market: the trend is moving increasingly away from the classic discount shoe box type of outlets with design of greater quality such as D- Shopping in Deinze (delivered in 214) or be-mine in Beringen, delivered this year or retail warehouses such as Bulthaup in Sint-Stevens-Woluwe or Audi in Wavre which include a high-end restaurant in the premises. Many deliveries, more to come. About 87, sq m of new and refurbished retail parks as well as extensions have been delivered in 215 including: be-mine, a 15, sq m retail park developed on a former mining site in Beringen Redevco s refurbished (11, sq m) and extended (6, sq m) Viva Shopping in Sint-Eloois-Vijve Estaimpuis Retail Park Mains et Sabots (16,5 sq m) near Mouscron Leonardo, a retail park that can grow to 18,5 sq m in Evere developed around the new Decathlon store, one of the largest of its kind Dansaert Park (8,5 sq m)in Groot-Bijgaarden Witte Molen, a 1, sq m park by Group Tans in Aarschot In terms of projects, there are close to 9, sq m to follow by the beginning of 216, including IKEA s retail parks in Mons (adjacent to the Grands Prés shopping centre) and in Hasselt. Top prime rents are stable. Figure 19 Take-up: Out of Town retail Figure 2 Top performing brands in Out of Town locations by sq m take-up Figure 21 Prime rents: out of town retail, EUR/sq m/year (prime shops of 1 sq m) sq m Deals (right hand scale) Prime rents for top retail parks across Belgium vary from EUR 1/sq m/year in locations such as Mons to EUR 16/sq m/year in Zaventem and have varied very little over the past year (Figure 21). Brussels - Rue de Stalle Antwerpen - Boomsteenweg Gent - Kortrijksesteenweg Antwerpen - Bredabaan Liege - Rocourt Brugge - Maalsesteenweg cushmanwakefield.com PROPERTY TIMES 12

13 EMEA John Forrester Chief Executive +44 () Leasing Retail Boris van Haare Heijmeijer Partner +32 () boris.vanhaareheijmeijer@cushwake.com Leasing Main Street Retail Flanders Evelien Van Hoecke Partner +32 () evelien.vanhoecke@cushwake.com Belgium Koen Nevens CEO Northern Region +32 () koen.nevens@cushwake.com Leasing Out of Town Retail Jean Baheux Partner +32 () jean.baheux@cushwake.com Leasing Main Street Retail Brussels & Wallonia Jonathan Delguste Partner +32 () jonathan.delguste@cushwake.com Capital Markets Arnaud de Bergeyck Partner +32 () arnaud.debergeyck@cushwake.com Leasing Retail Shopping Centres Nicolas Beaussillon Partner +32 () nicolas.beaussillon@cushwake.com Disclaimer This report has been produced by Cushman & Wakefield for use by those with an interest in commercial property solely for information purposes. It is not intended to be a complete description of the markets or developments to which it refers. The report uses information obtained from public sources which Cushman & Wakefield believe to be reliable, but we have not verified such information and cannot guarantee that it is accurate and complete. No warranty or representation, express or implied, is made as to the accuracy or completeness of any of the information contained herein and Cushman & Wakefield shall not be liable to any reader of this report or any third party in any way whatsoever. All expressions of opinion are subject to change. The data contained in this report is based upon that collected by DTZ. Our prior written consent is required before this report can be reproduced in whole or in part. 215 Cushman & Wakefield. To see a full list of all our publications please go to cushmanwakefield.com or download the Research App Global Headquarters 77 West Wacker Drive 18th Floor Chicago, IL 661 USA phone fax info@cushwake.com Cushman & Wakefield Belgium Kunstlaan 56 Avenue des Arts 1 Brussels Belgium phone +32 () Cushman & Wakefield Belgium Chaussée de La Hulpe 166 Terhulpsesteenweg 117 Brussels Belgium phone +32 () cushmanwakefield.com