MGPA, the independent private equity real estate investment advisory company, on behalf of MGPA Europe Fund III (the Fund), is pleased to announce the acquisition of a landmark high street retail property, home of the well-known department store 'Illum' in central Copenhagen.
The property consists of two adjacent buildings for a total of 40,300 m² of gross lettable area (GLA) and is located in Copenhagen's prime retail district, benefiting from prominent road frontage on four sides.
The most visible corner of the site is at the junction of the two most prominent pedestrian retail streets in the city. The majority of the space is leased to historic department store operator Illum on a 15-year basis while MGPA also intends to create high street retail units, including flagship stores for international retailers.
The seller is Magillum Properties A/S, a part of the Solstra Group. Solstra owns the Illum retail operation as well as the land mark property KgS Nytorv, housing the Magasin department store, and other property and retail investments.
Laurent Luccioni, Chief Executive of MGPA in Europe commented; "MGPA is very pleased to be purchasing such a high quality and iconic Danish asset. This builds on our strategy to acquire key buildings in the most prominent retail locations and add value through redevelopment and leasing.
"The asset provides excellent market opportunities for the creation of flagship stores and other retail units for both local and international retailers, capitalizing on its prime location in Copenhagen.
"MGPA will also leverage on its experience developed on a similar prime asset in Paris, Les Trois Quartiers, on which we have been creating significant value over the last two years.
"We look forward to working with our partners to continue the positioning of this asset to its highest and best use."
Claude Angéloz, Partner and Co-Head Private Real Estate of Partners Group, adds, "We are very pleased with our investment into this high profile property. It is consistent with our strategy of focusing on high quality real estate in excellent locations and strong economies that provides significant upside potential through active asset management.
"The retail investment we completed in the Copenhagen market last year has ensured we are already very familiar with the local market and its dynamics which has helped us to thoroughly underwrite this new investment and identify its attractive upside potential."
Source: Citigate Dewe Rogerson