StepStone Real Estate (SRE) and Nordic fund manager NREP have partnered to recapitalise a portfolio of seven Danish community shopping centres.

The total value of the transaction is over DKK1.4bn (€188.1m), with debt financing provided by the Danish bank Nykredit.

Rasmus Norgaard, the CIO of NREP, said: “This transaction created further liquidity and realised gains for our investors following a sizable portfolio sale we completed in late 2017. 

“By partnering with StepStone, we’ve also secured additional capital and several more years to further develop value in this portfolio longer term.”

Josh Cleveland, a partner of SRE, said: “SRE is excited to partner with NREP, who we consider to be an exceptionally strong fund manager, in the recapitalization of this portfolio.

“We are attracted to this portfolio given continued demand for well-located necessity-based retail and the positive demographic trends, strong economies and growth potential in the Nordic region and in Denmark in particular.” 

The properties are located on commuter rail and other major transportation facilities in greater Copenhagen and Aarhus, Denmark’s second largest city. 

Cleveland said over the last twelve months, SRE has committed more than $500m (€401.7m) of equity to six transactions in Europe and the US, in partnership with existing management and stakeholders. 

“When combined with over $2bn in primary commitments to real estate funds in 2017, we continue to position SRE, and as importantly our clients, as the equity partner of choice for leading real estate managers and sponsors.”