Savills Investment Management has bought two Danish retail worth €32m for its Nordic core and core plus retail fund.

The real estate manager said it has acquired the properties in Aarhus on behalf of Nordic III from an undisclosed seller. The properties are fully leased on a long-term basis.

The first asset is a newly-constructed building and the second was constructed in 2009 with a lettable area of around 10,800sqm.

Peter Broström, the head of Nordics at Savills IM, said: “The growth of e-commerce is particularly disruptive for the retail sector. Nevertheless, we believe that the physical dimension will remain an important point of contact between retailers and consumers.

“The entire demographic spectrum prefers to shop in a physical store for social and entertainment reasons, eating and testing products on the spot. Physical and online shops will co-exist as the demand for omnichannel solutions and services grows.”

Sofia Sandh, a senior investment manager at Savills IM, said: “Aarhus is the second largest city in Denmark and, in addition to positive population growth, also has a large catchment area, which is why we regard these new assets as a perfect addition to the Nordic III fund.

“In particular, these properties benefit from their proximity to an IKEA store, which enjoys a high volume of customer traffic.”

Nordic III is a core retail fund that aims for sustainable income and growth. The target size for the fund, which is open to further investors, is €500m.

Savills said it has identified significant opportunities for the fund in Scandinavia, which offers strong macroeconomic fundamentals.