ING REIM acquires €82-million shopping center in Stockholm (NL/SE)

ING Real Estate Investment Management on behalf of its European Shopping Center Fund (ESCF) has exchanged and completed on its first acquisition, Tyresö Centrum, Stockholm, Sweden for €82 million, reflecting an initial yield of 6.2%. ESCF held its First Close last December and will target up to €1.5 billion of investments in dominant shopping centers across continental Europe.

The shopping center is located in Tyresö, an affluent municipality 19 km south of Stockholm. The 28,000-m² GLA shopping center has been developed in several phases and was refurbished in 2009-10. The property features a mall in two levels and offers 65 retail units and 850 parking spaces to visitors. Main anchors are ICA, Coop, Systembolaget, Kappahl and H&M. The vendor was Unibail Rodamco.

Florencio Beccar, Fund Manager for ESCF commented: "We are pleased with this first acquisition shortly after our successful First Closing. Tyresö Centrum is a perfect match to our investment strategy. It is a core shopping center that is dominant within its dynamic and growing catchment area.

"The property offers substantial upside potential based on the strong historical performance by retailers, continued visitor and sales level growth and attractive lease profile. All of these characteristics allow value enhancing activities in the short to mid term through the active management style of the fund."

"We have identified several investment opportunities in Western Europe that present a similar profile to Tyresö Centrum and we hope to be able and complete on these by the end of Q1 or beginning of Q2, which coincides with the timing of our Second Closing."

Pieter Hendrikse, CEO of ING REIM Europe said: "Tyreso is an excellent first investment for this Fund which forms a critical element of our strategy to access future rental and capital market growth for our clients.''

Source: ING REIM

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