Meyer Bergman, the pan-European investment manager specialized in retail real estate, has sold a portfolio of high street properties located in the heart of Copenhagen’s prestigious main shopping district for circa €70 million to a fund managed by Cordea Savills.
Meyer Bergman’s second value-add fund, Meyer Bergman European Retail Partners II (MBERP II), assembled the portfolio of buildings on Copenhagen’s Købmagergade as part of the fund’s initial investments. The street is part of the Danish capital city’s busiest shopping locations, since it is anchored by retailers including Louis Vuitton, Royal Copenhagen, Illums Bolighus, and the Illum Department Store. The properties’ total of 8,040 m² of office and retail space is occupied by tenants including international brands Diesel, Esprit, Geox and Gina Tricot.
Frederik Kumlin of Meyer Bergman’s Acquisitions Team said: “This is the second unsolicited approach we received for assets in the fund, validating our strategy of concentrating on dominant, high footfall retail high streets in the centers of Europe’s leading cities that have sustained strong demand from retailers as well as investors. The healthy outlook for the Danish economy and the resilience of prime shopping destinations mean we continue to see interesting opportunities in central Copenhagen.”
MBERP II’s other investments in Europe’s prime retail destinations include properties on the Champs-Elysées in Paris and the “Golden Mile” in Madrid, the latter of which the fund sold in January to the owners of the fashion retailer Mango. The fund’s portfolio also includes assets with a dominant position in their respective markets: Whiteleys Shopping Centre in London’s Bayswater District, the Karstadt Department Store in Berlin’s Hermannplatz and Westfield Broadway in Bradford, England.
MBERP II has gained strong interest from global institutional investors as it approaches a final closing during the first half of 2014. The fund expects to exceed its target capital raise of €500 million, excluding leverage.
Meyer Bergman was advised by Cushman & Wakefield/RED on the transaction, while Bech-Bruun advised it on the legal aspects of the divestment.
Michael Rodda, head of EMEA retail investment at Cushman & Wakefield who advised Meyer Bergman, said:
"This transaction further underlines the appeal of the Nordic region to a growing pool of international capital and follows on from the sale of Rosengardcentret in 2013. We are already seeing a similar depth of appetite for other core shopping centers in the region.”
Source: Meyer Bergman