At a Glance
- Collins acquires 8 Dutch retail properties under long-term leases for $36.6 million.
- Deal supports Collins’ euro income diversification and geographic risk mitigation strategy.
- Properties span 30,614 sqm and are fully leased to Gamma and Karwei franchise stores.
Collins Group, a South Africa-based property investment company, has expanded its presence in Europe with the €31.5 million ($36.61 million) acquisition of a portfolio of eight retail properties in the Netherlands.
The strategic deal, which includes Gamma and Karwei-branded DIY stores, aligns with the group’s ongoing push for currency diversification and stable foreign income streams.
Collins secures 8-property Dutch portfolio for $36.6 million
Finalized through a series of inter-conditional agreements with seller Budé Beheer B.V., the €31.5 million ($36.61 million) acquisition covers properties operating under long-term triple net lease agreements with a new tenant.
The deal value may rise to a maximum of €31.5 million ($36.61 million) after working capital adjustments on the completion date. The newly acquired assets span over 30,600 square meters in gross lettable area and are located across Dutch cities, including Maastricht, Kerkrade, Brunssum, and Landgraaf.
Each asset will be held through one of five wholly owned subsidiaries under Collins NED Holdings B.V., a Netherlands-based entity fully owned by Collins Group. The transaction is contingent on the completion of Budé’s ongoing retail business disposal to a strategic buyer, who will assume the lease obligations.
Strategic move to boost offshore exposure
The deal marks a significant step in Collins Group’s strategy to generate inflation-linked income from developed markets.
Since 2021, the company has added six leased properties in Austria and a stake in four others in the Netherlands. This acquisition further enhances its exposure to euro-denominated assets.
“The rationale is diversification,” the company said in a regulatory filing. “This will offer our domestic investors access to markets with lower volatility and provide earnings stability through foreign currency revenue.”
Portfolio valued above book; leases expected to deliver $1.23 million profit
The portfolio was previously owner-occupied under non-commercial terms. Under the new lease agreements taking effect from April 1, 2025, the expected post-tax profit from the properties is projected at €1.055 million ($1.23 million) over the next 12 months.
The properties were acquired at fair market value, according to the Collins board, significantly above the €9.5 million ($11.06 million) carrying value in the seller’s December 2024 accounts, which were based on historical cost.
No shareholder approval required
Classified as a Category 2 transaction under JSE Listings Requirements, the acquisition does not require shareholder approval. The transaction is supported by standard warranties and indemnities customary for deals of this nature.
With this move, Collins Group continues to sharpen its position as a cross-border real estate investor focused on long-term, income-generating assets in stable European markets.
