Standard Life Investment's European Property Growth Fund (EPGF) has divested seven retail properties in Sweden for SK530 mln (€54 mln).
The assets are located in five locations, Falun (pictured), Västerås, Gävle, Huddinge and Kungsbacka. They were acquired by Stockholm-based retail property investment manager Svenska Handelsfastigheter.
The 31,100 m2 portfolio, featuring 28 retail stores, provides an annual rental income of SEK 50 mln.
The transaction is scheduled to complete on 19 June. Law firm Glimstedt advised the buyer, while JLL and Linklaters acted for the vendor.
EPGF seeks to deliver long-term returns by investing in a diversified portfolio of European commercial property, through a strategic weighting to core markets and a tactical research driven exposure to growth markets with an active management style to enhance returns. The fund's return objective is 8%-10% net per year on a five-year rolling basis.
The Swedish sale is part of the fund's ongoing strategy to reorientate its portfolio on core markets. For the same reason, the fund sold eight logistics assets located in Belgium, Germany, Italy and Hungary in an off-market deal to Logicor last year. The 242,000 m2 logistics portfolio amounted to about 20% of EPGF's assets.
Proceeds for the 2016 sale were redirected towards a range of property types in markets such as the Netherlands, Germany, Spain and Ireland.
Standard Life Investments remains active in regional markets in Sweden. Last June SLI's Euro Club fund II acquired the Ingelsta Retail Park in Norrkoping, eastern Sweden for €56 mln. The 37,000 m2 retail park consists of two properties and is anchored by retail chains such as Bauhaus, Willy's, Jula, and Rusta. EuroClub II also acquired two assets in the Netherlands.
Euro Club II is a closed-end real estate investment vehicle with €600 mln of assets.
