Meyer Bergman, the retail-focused European real estate investment management firm, has acquired a prime high-street retail property in central Copenhagen, Denmark, for 34 million.
The acquisition, which represents Meyer Bergman's first purchase in Denmark, was also the first acquisition undertaken on behalf of its second fund, Meyer Bergman European Retail Partners II. Meyer Bergman's first fund, Meyer Bergman European Retail Partners I was fully committed in 2011.
The property, which was built in 1882 and is Grade IV listed, comprises circa 5,000 m² of gross lettable retail space. Located in the prime retail area in central Copenhagen, the building is located on Kobmagergade, near its intersection with Stroget, the longest pedestrianized shopping street in Europe.
The area benefits from high footfall, with an average of 60,000 to 70,000 visitors per day, and is currently undergoing significant refurbishment works and upgrading. As a result, the retail offer is being refined due to strong retailer demand for the area. Benetton and Louis Vuitton have both relocated to Kobmagergade, close to where retailers Gucci, MaxMara, Mulberry, Hermès, Abercrombie & Fitch, as well as the Ilum Department Store, are located.
The building is currently let to a range of tenants on short leases, which therefore presents Meyer Bergman with an opportunity to actively manage the property, as Kobmagergade transitions into a revitalized retail extension to Stroget.
Markus Meijer, Founder and Chief Executive of Meyer Bergman, commented: "This acquisition is fully consistent with our core investment strategy to acquire prime retail assets with significant potential for growth through active asset management. The purchase also enables us to enter an important market which has benefited from a safe haven position in the context of continued Eurozone distress and which is increasingly attracting strong foreign investment interest."
Source: FTI Consulting