CBRE European Shopping Centre Fund II (ESCF II), a fund managed by CBRE Global Investors, has acquired Gallerian Nian in the eastern Swedish city of Gävle for SEK 765 mln (€80 mln).
The vendor was a closed-end fund managed by Barings Real Estate Advisers.
Gallerian Nian is a 21,155 m2 city centre shopping centre, built in 1973 and renovated in 2014. It comprises 50 retail tenants laid out over two floors and has 700 parking spaces. There is one floor of offices with nine tenants and a cinema complex.
The asset is anchored by Coop, Systembolaget, H&M, Lindex and Clas Ohlson. Footfall has been strong and stable since 2013 with over 5.1 million visitors per annum.
'This is a rare opportunity to buy a core asset at an attractive yield level,' commented Toby Smith, portfolio manager of ESCF II at CBRE Global Investors. 'It is a stable, fully let, well performing asset that offers secure income through the hold period on the back of its more than five million visitors and low OCR (overall capitalisation rate) levels.'
'We will deploy the full extent of our retail operating platform to execute on a business plan that focuses on income return and extending leases at expiry to produce returns in line with the fund's objectives,' added added Florencio Beccar, fund manager at ESCF II, CBRE Global Investors.
ESCF II is €796 mln in size and has eight assets under management in seven countries.
