Late December 2019, the coronavirus (COVID-19) outbreak started in China and spreading throughout Europe in early 2020. To contain the virus and to prevent further spreading, governments across the globe are taking extreme measures and, in this line, Vesteda has also taken measures regarding the operational activities of the company. At this point, it is unclear how long this pandemic will last, but it is clear that the impact on the Global and Dutch economy will be severe.
At this point (18 March 2020), it is hard to predict the complete impact for Vesteda’s business. Initial tests confirm that the business operations continue to run well and that almost all services can be provided to the tenants. Vesteda expects higher costs for tenant turnover and higher frictional vacancy, especially in the higher segment and in some commercial spaces. Furthermore, outstanding receivables and loss of rent will be higher and the value of the assets will be negatively impacted.