Partners Group, Duet provide debt for Copenhagen deal

Private investment manager Partners Group has announced that it has teamed up with Duet Private Equity's European real estate debt platform to provide mezzanine financing for the acquisition of the Magasin du Nord flagship department store property in Copenhagen, Denmark. The financing was provided as part of a transaction to complete the acquisition of the property by its client Solstra Investment, which is mostly owned by Alfi Investments' founder, Alshair Fiyaz.

The property is located on the historical Kongens Nytorv square close to Strøget, Copenhagen's most exclusive inner city shopping area. The Magasin du Nord department store benefits from direct access to one of the city's major metro stations and has more than seven million visitors every year. Magasin du Nord, a fully-owned subsidiary of British retail group Debenhams, has entered into a 24+ year triple net lease for the property.

While expected to generate attractive interest returns, Partners Group's facility enjoys significant downside protection due to the equity in the capital structure, the company said. 'We are very pleased to have been able to secure this attractive investment opportunity for our clients. It is consistent with our strategy to provide financing for high-quality properties in excellent locations in an investment market which is currently capital constrained and where transaction volumes remain subdued,' said Claude Angéloz, partner and Co-Head Private Real Estate at Partners Group.

In February Partners Group is believed to have participated in the £107 mln (EUR 127 mln) refinancing of 17 Columbus Courtyard in Canary Wharf, London, in partnership with UK private equity group Vico Capital. The property is on a long full repairing and insuring lease to Credit Suisse International and forms part of its European headquarters. The transaction was arranged by Duet Private Equity, through its real estate mezzanine financing platform, and was funded in partnership with MetLife.