CBRE Global Investors (CBRE GI) has acquired Jägersro Centre in the southern Swedish city of Malmö on behalf of the CBRE European Shopping Centre Fund II.
The investment volume was not disclosed.
The vendor was Trophi Fastigheter, a retail property vehicle established and managed by Nordic investment manager Redito on behalf of Sweden's AP3 national pension fund. Trophi-Redito acquired Jägersro Centre as part of the €328 mln purchase of a six-asset retail property portfolio in Sweden from Starwood Capital Group and Vencom in July 2016.
The retail scheme is located in Jägersro in Malmö and is anchored by a Coop Forum, as well as H&M, Systembolaget and Stadium. The centre consists of two separate buildings with a total lettable area of 29,400 m2. The main building was originally constructed in 1962 and was, at the time, the first hypermarket in Sweden. In 2004, the building was renovated, resulting in its current layout. In 2015, the façade was replaced. Today, the single-storey building contains 35 stores and three restaurants.
This is the sixth acquisition for the €1.2 bn CBRE European Shopping Centre Fund II, which had its final equity closing at the beginning of December 2016. The other shopping centres are located in Belgium, Germany, Poland, Italy and Spain.
Florencio Beccar, head of retail EMEA, CBRE Global Investors, commented: 'We are excited about this acquisition in Sweden, which complements the fund’s portfolio well. The asset has the solid performance indicators of a stabilised centre offering the opportunity for significant value creation by restructuring the hypermarket, renewing leases and letting the current vacant units. We have successfully restructured assets like Jägersro Center in the past few years and this transaction builds on this theme as assets reach the point in their life cycle in which they need to be fine-tuned to new retailer and customer demand.
CBRE acted for the seller.
