Eurocommercial Properties N.V. ('ECP') announced today that it has acquired four further shopping centres in Sweden at a cost of Ã¢âÂ¬ 86 million with an overall net yield of 7.5%. ECP now has a total of six centres there with a value of about Ã¢âÂ¬ 158 million, representing approximately 13% of the Company´s Ã¢âÂ¬ 1.2 billion property portfolio.
The balance being Italy (40%), France (40%) and The Netherlands (7%). Shopping centres and other prime retail property now account for around 87% of the total. Three of the shopping centres were acquired as a portfolio from ICA AB and the other from Kf Gota, a member of the Cooperative Union. These two organisations are the major food retailers in Sweden.
ECP director responsible for Scandinavia, Peter Mills, said that he believes that the relationship the Company has developed with major Swedish retail groups will be of great value as it consolidates its position as one of the major investors in shopping centres in the country, as it has already done in France and Italy. He added that the higher yields available for good Swedish shopping centres are attractive when compared with much of Western Europe where there is an extremely limited supply of sound investments.
Source: Eurocommercial Properties