IVG forward funds TK's retail park project in Sweden

German property group IVG has acquired a retail park project in the Swedish city of Uppsala from TK Development in a forward funding deal. An institutional fund of the IVG Funds is paying SEK 200 mln (EUR 17 mln) for the scheme.

Announcing the deal, Copenhagen-listed TK Development said it had taken over the development of the retail park from Sweden's Fastighets AB Velocipeden, represented by Lars Backemar, Backemarconsulting. Construction of the retail park will start in February 2009. The IVG fund will make periodic payments as TK Development builds the premises. TK Development expects to hand over the completed retail park to IVG Funds in March 2010.

The Danish developer said the retail park will provide 10,800 m² distributed on five leases. The only vacant leasehold unit covers 850 m2, which means that the current occupancy rate is 92%. TK Development added that it is negotiating with a potential tenant interested in taking over the vacant unit.