Investment manager Savills IM has acquired a regional shopping centre in Sweden, bringing the number of assets in its Nordic III retail fund to seven.
The property on Helsingborg's Kullagatan shopping street consists of nine units over three floors and 7,800 m2 of retail space. Tenants include department store Åhléns, fashion retailer KappAhl and sports goods merchant Stadium Sweden.
The vendor was Skandia Fastigheter. Financial details were not disclosed.
Peter Broström, head of Nordics at Savills IM, said the Nordic retail market continued to offer good opportunities for investors. 'Investments in retail real estate in Scandinavia reflect stable GDP growth, low unemployment and growing per capita income in the region, with a corresponding positive impact on consumer spending and retail sales,' he said.
'As a result, local and international retailers continue to thrust into the Nordic region, which is reflected in growing rental prices and high demand for quality retail space with a low supply.'
The Nordic III retail fund was launched in late 2017 with a target volume of €500 mln. The seven assets in the portfolio include a number of Swedish IKEA centres and two properties in Aarhus, Denmark, acquired in January for €32 mln.
The fund is targeting an annual total return of 7% to 9% with an income of at least 5.5% by investing in inner-city commercial buildings, locally dominant shopping centres, speciality stores and retail parks across the four Nordic nations. The fund is open to further investors.
Robert Göthe, investment director at Savills IM, said: 'The city of Helsingborg on the coast of southern Sweden is one of the fastest growing cities in the country. With its prime location in the city's main shopping street and leased to established retailers, the property fits perfectly with the fund's strategy. We are currently in the process of identifying further potential acquisitions.'
