Allianz Real Estate has provided its first direct property loan in Sweden, financing a retail asset.

The property arm of the German insurer said provided a SEK690m (€73m) loan for the refinancing of the Bergvik shopping centre in Karlstad, owned by Eurocommercial Properties.

Helmut Muehlhofer, head of the debt team in Munich, said: “This transaction presented a good opportunity for Allianz Real Estate to close a first financing deal with Eurocommercial in Sweden and to further diversify the investment portfolio geographically.”

The 33,000sqm asset is anchored by supermarket chain Coop and 70 additional tenants.

Allianz said the mall’s location was strengthened by the presence of an IKEA store, making it a dominant retail location in Värmland.

Eurocommercial has owned part of the asset since 2005, buying the fully refurbished second part late last year.

Speaking on a panel on the changing nature of retail at the annual conference of the European Public Real Estate Association (EPRA) in Paris this month, Jeremy Lewis, chief executive at Eurocommercial Properties, said: “The internet has been around for 10 years, and yes, it’s a factor. But I’m not convinced people are making a lot of profit out of online (retailing).”

Allianz Real Estate last year refinanced a French office portfolio for listed property company Eurosic.

The German insurer said it provided €163.4m of debt backed by a portfolio of nine core office assets.