Pension provider AMF has acquired three prime shopping centres in Stockholm in the largest Swedish retail property deal of 2011. The investment volume was not disclosed but it is believed to be just over SEK 4 bn (EUR 450 mln). There was stiff domestic and international competition for the assets.
Pension provider AMF has acquired three prime shopping centres in Stockholm in the largest Swedish retail property deal of 2011. The investment volume was not disclosed but it is believed to be just over SEK 4 bn (EUR 450 mln). There was stiff domestic and international competition for the assets.
The company is believed to have emerged ahead of rivals Allianz Real Estate and Finnish listed property firm Citycon in the bid to buy the three neighbourhood shopping centres. The deal reflects a yield under 5%.
Jones Lang LaSalle advised AMF Fastigheter, the pension company's real estate arm, in the transaction.
Daniel Gorosch, head of capital markets at JLL Sweden commented: 'This is the largest retail transaction in Sweden in 2011 and the largest retail investment ever made by a domestic investor.'
'We anticipate that total retail transaction volumes in Sweden for 2011 will reach SEK 16 bn (EUR 1.8 bn), placing Sweden amongst the top five retail investment markets in Europe in terms of volume. Due to high demand from both domestic and international investors looking to purchase prime retail investments we expect this momentum to continue into 2012,' Gorosch added.
The vendor was Centeni, a company owned by Royal Bank of Scotland. Tenzing acted for the seller Centeni.
The retail gallery properties Fältöversten, Ringen and Västermalmsgallerian comprise a total lettable area of 60,000 m2.
They formed part of the Centrum Kompaniet portfolio of 10 Stockholm shopping centres acquired by a joint venture of UK investor Boultbee and Lehman Brothers for EUR 1 bn in 2007. Finance was provided by the Royal Bank of Scotland and Lehman Brothers.
Boultbee sold its 51% stake in the portfolio to RBS in May this year and the banking group started marketing the assets. Five medium-sized were sold in November for a volume believed to be about EUR 54 mln, reflecting a 9.5% yield. Another small mall has also been sold.
The only remaining mall is the 63,000-m2 Skarholmen Centrum which will be marketed next year. The price tag will likely be in the vicinity of EUR 350 mln.
