Meyer Bergman, the retail-focused European real estate investment management firm, has made its debut in the Danish market with the purchase of a prime high-street retail property in central Copenhagen. The deal, representing an investment of EUR 34 mln, is believed to reflect a net initial yield of just over 5.5%.
Meyer Bergman, the retail-focused European real estate investment management firm, has made its debut in the Danish market with the purchase of a prime high-street retail property in central Copenhagen. The deal, representing an investment of EUR 34 mln, is believed to reflect a net initial yield of just over 5.5%.
The acquisition is Meyer Bergman’s first purchase in Denmark, as well as the first undertaken on behalf of the company’s second fund, Meyer Bergman European Retail Partners II.
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We have been looking at the Danish market for some time now. High-street has recently witnessed a certain degree of cap rate compression and this investment opportunity in particular provided us both with a good yield and the possibility to enhance returns through active asset management,' Markus Meijer, founder and chief executive of Meyer Bergman, told PropertyEU.
The property, which was built in 1882 and is Grade IV listed, comprises around 5,000 m2 of gross lettable retail space. Located in Kobmagergade, near its intersection with Stroget, the longest pedestrianised shopping street in Europe, the building is currently let to a range of tenants on reversionary leases, presenting Meyer Bergman with an opportunity to re-gear amid positive rental dynamics.
‘This acquisition enables us to enter an important market which has benefitted from a safe haven position in the context of continued eurozone distress and which is increasingly attracting strong foreign investment interest,' Meijer added.
Meijer said the company is targeting further investment opportunities in Denmark, and hopes to be able to make a new announcement as soon as next month. 'Urban prime retail, such as in this area of Copenhagen, has become an attractive investment proposition. New top-quality tenants such as Benetton and Louis Vuitton have recently relocated to Kobmagergade, raising the profile of this central shopping street and creating upside potential for rental levels,' he noted.
Meyer Bergman is believed to have secured around EUR 130 mln of equity at the first close of its second retail property fund. Although the company declined to comment, it is understood that the Meyer Bergman European Retail Partners II is targeting a total firepower of EUR 1-1.25 bn, including leverage. The value-added vehicle is thought to be targeting a mix of high-street retail and prime shopping centres in the UK, Germany, Scandinavia, Poland and the Czech Republic.
