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:
- 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 
- Focus on retail tenants less sensitive to economic cycles 
| Key market developments | Underlying aspects | Implications | Opportunities | 
| Changing demography | ·  Urbanisation: Urban areas are still growing and continue to attract young people with spending power | ·  Cities, especially those in the Randstad, ‘winner’ in changing demographics | Focus on high street retail units in A1 locations (EXPERIENCE) | 
| ·  Shrinking and ageing of the population in rural areas | ·  Worsened perspectives for fashion retailers outside urban areas |  | 
| High street embrace online shopping | ·  Consumer demand for shopping experience when shopping for non-food items  | ·  Physical shops add brand values as service point and experience centre |  | 
| ·  Large (international) fashion brands focus on exciting flagship stores as an addition to online sales | ·  Large retail units in best shopping cities remain popular among retailers |  | 
| Consumers demand convenience and value | ·  Persistently low inflation is expected to boost consumer spending, strong turnover development in food sector | ·  District shopping centres focus on food and daily goods | Focus on local/district shopping centres with strong catchment area and easy access (CONVENIENCE) | 
| ·  Accessibility and parking facilities are key in daily shopping | ·  Opportunities for district shopping centres as pick-up point for online shopping | 
Strategic actions in 2015
- Strengthened ‘Experience’ portfolio, through redevelopments in A1 locations 
- Strengthened ‘Convenience’ portfolio, through addition of new-build project and redevelopment of local shopping centres that meet the needs of today’s consumers 
- Divested non-core asset Arnhemseweg in Ede 
- Continued to optimise the standing portfolio through redevelopments