Schroder Nordic fund invests EUR 20m in Sweden

Schroder Property has bought a second retail property in Sweden for around EUR 20 mln for its Nordic Property Fund in a deal reflecting an initial yield of 6.3%. The acquisition of Coop Forum in the city of Helsingborg follows the purchase, also in the second half of 2011, of a retail property in Malmö.

Coop Forum comprises some 9,000 m² of space and 470 parking spaces. The asset was bought from Swedish insurance company Alecta and is fully leased to Coop, Sweden's second-biggest supermarket chain.

Commenting on the transaction, Michael Ruhl, head of Schroder Property KAG, said: 'The acquisition in Helsingborg fits perfectly into our diversified fund portfolio. We were able to buy the property at an attractive price. For the Helsingborg region we are counting on 3.5% growth in retail turnover over the next five years. The geographic proximity to Denmark - at a distance of only 4 km - will also benefit the property.'

Shroders plans to raise additional EUR 100 mln from investors for the fund next year.

Christoffer Sundberg, head of fund management Nordics at Schroder Property, told PropertyEU that investment of the new equity would probably begin in the first half of 2012.

Shroders sees a lot of opportunities in Swedish cities such as Gothenburg and Malmö, and in the greater Helsinki area in Finland.

Sundberg said there was a restructuring under way in European real estate with a noticeable shift from the south of the Continent to economically stable north. 'Schroders will continue to invest in the right opportunities across Europe,' Sundberg said, 'but we will increase our share in the Nordics over the long run'.

Schroder Nordic Property Fund was established in 2005 to capitalise on office and retail opportunities in the Scandinavian market.