STOCKHOLM, 2 July 2014 – CBRE Global Investors has acquired Valbo Köpcentrum, Gävle, Sweden on behalf of a partnership between its European Shopping Centre Fund (“ESCF”) and the Teacher Retirement System of Texas (“TRS”) at a yield of 6.1%. The seller was Konsum Gavleborg.
The 37,030 sq m shopping centre comprises 60 retail units spread over a single level and has 2,000 free car parking spaces. The retail units are let predominantly to well-established national tenants including Coop, H&M, Clas Ohlson and Kapp-Ahl and is 98% occupied.
The scheme is located just outside the city of Gävle, in the province of Gävleborg on an arterial route that benefits from strong local and seasonal traffic flows. It is well serviced by public transport for the 250,000 people located within the catchment area.
Florencio Beccar, Fund Manager, ESCF said: “Valbo Köpcentrum is an established asset which is well occupied and possesses a strong operational track record. It also benefits from an attractive lease expiry profile, combining stable income with opportunity for rental uplift on lease expiries.”
“We will be looking to build on the historic success of this shopping centre with active asset management and investment in the centre to unlock further value. The scheme is full of potential and we are looking forward to attracting new tenants to improve the retail offer and welcoming exciting new brands for the loyal customer base.”
“ESCF was seeking to gain further exposure to the stable Swedish market, given the historically sound economic fundamentals and prospects for continued growth. Rents for prime Swedish shopping centres have been growing in the period 2009-2012 and we believe that dominant well established and well managed schemes will continue to outperform the market average, making this a solid asset to have in the ESCF portfolio.”
Cushman & Wakefield, PWC and Linklaters acted for CBRE Global Investors.
The CBRE European Shopping Centre Fund, which was launched in December 2010, is a closed-end, seven year lifetime fund. It is now fully invested with seven assets totalling over €650 million assets under management.
ESCF has 26 investors who have committed €305 million of equity plus €86 million commitment from TRS for partnership transactions.
The shopping centres in the ESCF portfolio are: Galeries Saint-Lambert, Belgium; Centre Commercial Boissénart, France; Tyresö Centrum, Sweden; Leine Center, Germany; StadtCenter Düren, Germany; Galeria Mazovia, Poland and Valbo Köpcentrum, Sweden.
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About CBRE Global Investors
CBRE Global Investors is a global real estate investment management firm with $90.1 billion in assets under management* as of March 31, 2014. The firm sponsors investment programs across the risk/return spectrum for investors worldwide.
CBRE Global Investors is an independently operated affiliate of CBRE Group, Inc. (NYSE:CBG). It harnesses the research, investment sourcing and other resources of the world’s premier, full-service commercial real estate services and investment company for the benefit of its investors. CBRE Group, Inc. has approximately 44,000 employees in approximately 350 offices (excluding affiliates) worldwide. For more information about CBRE Global Investors, please visit www.cbreglobalinvestors.com.
*Assets under management (AUM) refers to fair market value of real estate-related assets with respect to which CBRE Global Investors provides, on a global basis, oversight, investment management services and other advice, and which generally consist of properties and real estate-related loans; securities portfolios; and investments in operating companies, joint ventures and in private real estate funds under its fund of funds program. This AUM is intended principally to reflect the extent of CBRE Global Investors’ presence in the global real estate market, and its calculation of AUM may differ from the calculations of other asset managers.