Vastned strategy-update: Focus on growth in selected European cities
Divestment of the Turkish portfolio and announcement of share buy-back
• Strategy update: Focus on growth in selected European cities
• Vastned exits Turkey by divesting its Turkish entity resulting in net sales result of € 5.9 million
• Approximately € 50 million of the Turkish divestment proceeds will be used for a share buy-back
• Estimated 2017 direct result is unchanged at € 2.10 - € 2.20 per share
Vastned, the listed European retail property company focusing on venues for premium shopping, announces an update of its strategy and has signed an agreement for the divestment of the Turkish entity, thereby exiting Turkey. Part of the proceeds of the divestment will be used for a share buy-back of approximately € 50 million.
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Since the start of the high street strategy in September 2011, Vastned has continued its strategy in a proactive and disciplined manner. We have made signifi cant improvements in the quality of the portfolio and we created stronger clusters. This has been one of our strengths over the past few years.
We will continue to focus on the best shopping streets in the best shopping cities in large European cities, primarily focusing on growth in five selected cities: Amsterdam, Antwerp, Madrid, Paris and Barcelona. We will focus on growth of the clusters in these cities in a pragmatic and disciplined way, step-by-step.
The divestment of the Turkish portfolio clearly adds to the further stability of the portfolio. The current geopolitical, political, and economic situation in Turkey and the expectation that it will not improve in the short to medium term, makes its less attractive for retailers to be present in Istanbul, putting rents under pressure in the future. As the divestment of this portfolio contributes to our goal of generating stable results, we are pleased we can today announce the sale of our Turkish entity.
Due to the size of this divestment we have decided to use part of the proceeds to buy back shares following the closing of the transaction. Due to the combination of the divestment and the share buy-back the expected direct result for 2017 of € 2.10 - € 2.20 per share, as announced on 15 February 2017, will be unchanged.
Vastned is a listed (Euronext Amsterdam) European retail property company focusing on venues for premium shopping. Vastned invests in selected cities in Europe, with a clear focus on the best retail property in the most popular shopping streets in the bigger cities. Vastned's tenants are strong and leading international and national retail brands. The property portfolio has a size of approximately € 1.6 billion.