IEF Capital is making preparations to sell a number of prime Dutch retail sites in what could be one of the biggest-ever deals in the retail property market, the Financieele Dagblad reported on Friday.

IEF is planning to sell a portfolio of five Bijenkorf, seven former V&D and 30 Hema stores in prime spots throughout the country, according to trade publication Debtwire which was confirmed by industry sources.

IEF, however, denies the portfolio, worth €1.5bn, is for sale. ‘At present we are only looking into the possibility of changing our shareholder structure,’ a spokesman said. ‘This included discussions which led to the rumours,’ he said.

IEF Capital’s retail locations are among the best in the country. Many of the V&D stores already have new tenants and others are being thoroughly renovated. IEF sold 38 smaller Hema stores last year for €250m to a consortium headed by UK-based Crossroads Real Estate, Debtwire said earlier.

Out of favour

A number of institutional investors as well as private equity companies have shares in IEF Capital, a closed-end retail fund. The fund was set up in 2005 and is managed by investment group IEF and Rabobank subsidiary Bouwfonds Investment Management.

Low interest rates and the lack of alternative investment has raised interest in property and prestige buildings are top of buyers’ lists. In 2016, investors bought property- primarily offices and housing – worth €13.5bn.

Retail stores were less popular as an asset class last year, with sales falling to €1.8bn, about €1bn less than in 2015. The many bankruptcies in the retail sector made investors wary particularly in less popular areas and more than 10% of retail stores are empty, the paper said.

Property consultant CBRE expects a sharp rise in retail stores investment in 2017 as the wave of bankruptcies has passed and the economy expands.