Valbo is the only regional shopping centre in the county of Gästrikland, central Sweden, which serves a catchment of around 250,000 people. It has 37,200 m² of lettable area and is well-positioned alongside the E16 motorway between Gävle and Sandviken. The shopping centre is let to 70 tenants and is anchored by a 6,775 m² Coop hypermarket. Other major retailers include H&M, Systembolaget, Clas Ohlson, KappAhl, Lindex, Stadium and the main Varner Group brands. The centre is attached, and partly-let, to an IKEA store. The retail zone is further strengthened by the nearby Valbo retail park where major tenants include Elgiganten, MediaMarkt, MIO and XXL.
Eurocommercial Chief Executive Officer, Jeremy Lewis, said: “Valbo is an excellent shopping centre with significant potential for further improvement, and is an important addition to our portfolio of high-quality retail assets. Its location, tenant mix and lack of competition meet our core criteria for acquisitions in Sweden - the dominant external centre in a leading provincial city, anchored by a hypermarket.”
Eurocommercial Director and Head of Sweden, Peter Mills, added: “Eurocommercial has built up considerable experience in buying, managing and developing well-located retail properties in established and wealthy markets. Today’s announcement follows our recent acquisition of the 40,600 m² C4 Shopping development outside Kristianstad (now over 80% pre-let) and the successful re-launch of the fully-let Hallarna outside Halmstad, which has attracted a strong roster of new retail brands for the region and will have around 90 tenants once the 44,000 m² project is completed this year.”
The Valbo shopping centre was acquired by Eurocommercial at a price of c. €116m (SEK 1.14 bn) yielding in the region of 5.3%. The acquisition was partially funded by the recent sales in Sweden of Mellby and 421, Göteborg.