Norwegian billionaire takes €360m slice of Swedish mall sector

Norwegian rags-to-riches billionaire Olav Thon is acquiring five shopping centres in Sweden from investor-developer Steen & Strøm for €360 mln in the third-largest property transaction in Sweden so far this year.

Thon's company is seeking to become one of the main owners of Swedish shopping centres, while Steen & Strøm is releasing capital for its development pipeline across the Nordics.

The transaction is being carried out by a Swedish subsidiary of Oslo-listed Olav Thon Group. The company - which is controlled by the Olav Thon Foundation - is the largest individual property owner in Norway. Its 450-asset portfolio comprises shopping centres and 60 hotels.

The latest transaction is being financed from a combination of existing cash reserves and new borrowing. The five assets are Familia (Hyllinge 15,769 m2), Etage (Trollhättan, 16,604 m2), Mirum (Norrköping, 39,122 m2), MittiCity (Karlstad 16,010 m2) and Sollentuna Centrum (Stockholm, 35,713 m2). Total retail turnover in 2013 was SEK 3.6 bn (€400 mln).

Already the owner of the Nordby, Töckfors and Charlotte Berg shopping centres in Sweden, the group has 'taken the strategic decision to further growth in our neighbouring country and position the group as one of the biggest players in this market', the buyer said in a statement. On completion of the deal on 1 July 2014 the group will own some 350,000 m2 of Swedish shopping centres with total annual retail turnover of €1.4 bn.

OLAV THON
Thon was born in the Hallingdal region of Norway in 1923. According to his authorised biography, he grew up as a "farm boy who only went to the city to sell fox pelts". Generally photographed wearing a trademark orange hat, Thon is a leading Norwegian real estate developer and the country's richest citizen. He was named in the Forbes billionaire list as the 198th richest person in the world with a net worth of €4.7 bn in March 2013.

Thon describes himself as a Christian and is married without children. In 2008, his solicitor announced he intends to give away his entire fortune via an independent foundation focused on medical sciences.

STEEN & STRØM
Steen & Strøm is the largest shopping centre owner in Scandinavia, with 39 shopping centres in Norway, Sweden and Denmark, comprising 1 million m2 of leasable area that attracts 150 million visitors annually and generates €4.2 bn in annual turnover. The company is owned by listed European shopping centre group Klépierre (56.1%) and Dutch pension fund asset manager APG (43.9%).

Steen & Strøm said the disposal was carried out to strengthen its financial position and to release capital 'for the future targeted development projects that are to be realised in Norway, Sweden and Denmark in the coming years'.

Leimdörfer has served as sole financial advisor to Steen & Ström.