Cordea Savills has completed the acquisition of a retail warehouse in Vaxjo, Sweden, for its European Commercial Fund. The fund offers core diversified exposure to the property markets of the major economies of Western Europe.
The 22,894-m² retail warehouse park was acquired from Schaumann Development A/S und KAEC Holding ApS for €30.3 million. The newly developed units are fully let on 10-year leases. Major tenants include K-Rauta (DIY), Media Markt (electronics) and Jula (hardware).
The European Commercial Fund's strategy is to invest in France, Italy, the Netherlands, Spain, the Nordic countries, the UK and Germany, which together account for 60% of the European Union's GDP. The fund has a strong focus on long and secure income streams and is targeting a distribution yield of 5% per annum and a total return of 7% per annum, after fees and local taxes. It aims to achieve this by focusing on the following sector strategy:
- the office market - non-prime buildings in prime locations, as well as prime properties in major provincial cities across Europe;
- the retail market