Publication date: January 9, 2025

Wereldhave is one of the oldest and most prominent real estate funds in the Netherlands. The fund has experienced many setbacks and turbulent times over the past 20 years. In the coming year, we certainly do not rule out the start of surprising comebacks. A good time to bring Wereldhave to our attention because this fund is at a low level and may prove to be a perfect buying opportunity for the future.

 introduction Wereldhave:

Wereldhave was founded in the Netherlands in 1930. The fund initially focused on investing in real estate with a focus on a stable dividend yield for investors. The company built a portfolio of commercial and residential properties, with a focus on Dutch assets.

In the 1970s, it expanded operations to other European countries, including Belgium, France, and later the United States. Wereldhave increasingly specialized in commercial real estate, with a focus on shopping centers and offices. The fund continued to invest in real estate in Europe throughout the 1990s, expanding into Canada, the United Kingdom, and Singapore.

The company became a publicly traded real estate investment trust (REIT), which made it attractive to investors thanks to tax benefits and stable distributions. The company faced significant challenges starting in 2015 due to the rise of e-commerce and structural changes in the retail sector. Wereldhave shares lost significant value during this period, partly due to write-downs and high debt.

Werledhave announced a new strategy in 2020 to transform traditional shopping centers into Full Service Centers. That is a concept that combines shopping with hospitality, recreation, healthcare, and other services. Worlddhave has begun implementing this strategy in major shopping centers in the Netherlands, Belgium, and France.

What has Wereldhave's share price done?

Below is the share price chart from the end of 2005. You can see the decline from € 87 to € 6 with the various causes written out. Wereldhave has had a lot to endure. We first discuss the history and later we look at the outlook for the future.

The 65% decline in Wereldhave shares between 2007 and 2012 can be attributed to a combination of macroeconomic factors, the euro crisis, internal strategic weaknesses, and unfavorable market dynamics which led to a decline in investor confidence. Wereldhave later began restructuring efforts to focus more on core markets and segments, but the impact was not felt until after this difficult period.

The 90% decline in Wereldhave shares between 2015 and 2020 can be attributed to a combination of internal business problems and external market factors. The most important is the rise of e-commerce: Physical shopping centers, Wereldhave's core business, faced increasing competition from online shopping, leading to vacancies in shopping centers and lower rental income. Wereldhave had relatively high debt levels, making it more vulnerable to market changes and rising financing costs. The company was known for its high dividend payouts, which were attractive to investors. However, when the results deteriorated, the dividend was cut, leading to a negative reaction in the stock market. In response, Wereldhave announced a restructuring plan aimed at transforming shopping centers into "Full Service Centers," but this required time and investment to turn the tide.

Why might Wereldhave offer a nice perspective for investors?

Wereldhave will compete online with exceptional - and modern shopping centers. In addition, the financing burden will start to be lowered by further interest rate cuts from the ECB.

Full-Service Centers


The definitive breakthrough of online shopping has been known for ten years and incorporated into the stock price and strategy. Online shopping will remain, but that does not mean that physical shopping will disappear altogether. In addition to the disappearance of well-known stores such as Blokker, for example, Rituals has now opened more than 1,000 stores. For several years Wereldhave has been adapting its retail offer to the current zeitgeist of the Full Service Centers.

Worldhave's Full Service Centers are a strategic transformation of their traditional shopping centers into modern multifunctional destinations. This concept combines shopping with additional functions and services to better respond to changing consumer demand and real estate trends. The goal is to make shopping centers more attractive and relevant at a time when online shopping and changing consumer behavior are putting pressure on physical stores.

Full-Service Centers offer more than just stores. They integrate various functions such as:

Hospitality (restaurants, cafes) Healthcare (clinics, fitness centers) Workspaces (co-working) Recreation (cinemas, gaming facilities) Community services (such as childcare or libraries).

The concept responds to the growing demand for experiences rather than just shopping. This includes events, entertainment and places to relax. The centers are designed to meet the needs of the local community, with a mix of national and local tenants to match the specific demand in the region.

Worldhave is committed to making the centers more sustainable, for example through energy-efficient designs, circular building materials and initiatives such as solar panels and green space management. Technology plays an important role in the Full Service Center concept, such as digital platforms for customer interaction, smart parking solutions, and click-and-collect services.

By offering a unique mix of features and experiences, Full Service Centers aim to add value that online shopping cannot provide. Multi-purpose centers attract different types of visitors, from shoppers to people who work or recreate there, leading to higher occupancy rates and revenues. By diversifying functions and tenants, more stable and higher rental income can be generated.

The European interest rate

The European Central Bank (ECB) began cutting interest rates in 2024 and is expected to continue this policy in 2025. These interest rate cuts are a response to declining inflation and the desire to stimulate economic growth in the eurozone. The ECB cut interest rates four times in 2024, with the deposit rate falling from 4.00% to 3.00%. Economists predict further interest rate cuts in 2025. Some analyses suggest that deposit rates could fall to 1.75% by July 2025. Eurozone inflation has fallen to about 2.3%, close to the ECB's 2% target. At the same time, economic growth is showing signs of slowing, reinforcing the need for stimulative monetary policy. The ECB's next interest rate decision is scheduled for Jan. 30, 2025. Although specific details have not yet been confirmed, the ECB is expected to make further interest rate cuts to support the economy and keep inflation stable.