Amsterdam-listed shopping centre landlord Eurocommercial Properties has acquired a major retail zone project in the southern Swedish city of Kristianstad for SEK 1.3 bn (€134 mln).
Kristianstad is situated about one hour's drive north-east of Malmö and is a regional capital in the southern Skåne region of Sweden. The city has a catchment area of 300,000 people but does not currently have an out-of-town shopping centre.
The project involves the constructiuon of C4 Shopping, a 90-unit shopping centre of 31,600 m2; a 6,500 m2 hypermarket and a further 2,500 m2 of retail units on the E22 motorway. Eurocommercial has also conditionally committed to acquire a 20,500 m2 retail park on the site.
The necessary planning consents have been received for all units. Ground works have begun and the hypermarket is expected to open by the end of 2017, with the shopping centre opening one year later. Eurocommercial said that the net acquisition yield for the shopping centre and the hypermarket was 6% and 6.5% for the retail park.
Peter Mills, Eurocommercial’s director responsible for Sweden said, 'The Swedish team, under the leadership of Martin Bjöörn, has developed considerable construction and leasing expertise in major extensions of our shopping centres over the years. The Kristianstad acquisition allows us to utilise this experience to acquire properties at an earlier stage, thus achieving much higher yields than simply buying existing assets in a highly competitive market.'
