BlackRock sells prime Copenhagen department store building

Global investment manger BlackRock has sold Copenhagen’s prestigious department store Illum to Thailand’s Central Group.

The acquisition of the 44,000 m2 property on Østergade gives Central Group outright ownership of Illum’s assets a year after it acquired the Illum brand and business.

The price paid for the property was not disclosed, but Danish finance daily Børsen gave the value at between DKK2.5 bn and DKK3 bn (€335-400 mln), representing a DKK1 bn profit for BlackRock in four years. MGPA (now part of BlackRock) acquired the property for €220 mln in August 2011.

Mathias Busck, head of BlackRock’s Nordic real estate business, said: ‘We have refurbished and repositioned the Illum building to fit the needs of future shoppers and international retail brands. The site offers unique opportunities for luxury retailers.’

Tos Chirathivat, CEO of Central Group, said: ‘The location of this department store is unique and it fits perfectly with our strategy to grow our business in Europe. We will build on the strong brand which Illum has in Denmark and shall continue our refurbishment program and introduction of world class Danish and global luxury brands to the store.’

Central entered the European market in 2011, when it bought the Italian group Rinascente for €205 mln as part of a strategy to build a portfolio of historic luxury department stores. A new La Rinascente store is under construction in Rome and is due to open in 2017.