Rodamco Europe in Sweden acquires TyresÃÂ¶ Centrum in TyresÃÂ¶ nearby Stockholm for an amount of SEK 391 million (42 million euro). The expected net initial yield of the shopping center is 7.2%. Selling parties are TyresÃÂ¶ BostÃÂ¤der AB and Apoteket AB:s Pensionsstiftelse, both for 50% owner of TyresÃÂ¶ Centrum. The transaction will be completed by 1 October 2003, subject to the approval of TyresÃÂ¶ municipality.
Maarten Hulshoff, Rodamco Europe´s CEO: 'The acquisition of TyresÃÂ¶ Centrum is in line with our strategy of expanding with high quality dominant shopping centers in large urban catchment areas. TyresÃÂ¶ Centrum completes our portfolio to 10 shopping centers in the Stockholm area, further strengthening to our dominance.'
TyresÃÂ¶ Centrum comprises approximately 36,000 sqm of leasable area. The occupancy rate amounts to 99.4%. 20,000 sqm are retail area and divided among 40 stores, including Lindex, KappAhl, Dressman, Twilfit, Wedins Skor, Coop Konsum, ICA Kvantum, Team Sportia, Guldfynd and Gallerix. The fashion chain H&M (Hennes & Mauritz) will open a store in the center in autumn 2003. In addition, there is a 2,000 sqm library for which a 15-year lease agreement has been signed with the municipality.
The remaining 14,000 sqm are office premises. Related to the acquisition a 20-year lease agreement has been signed with the municipality concerning 8,500 sqm of office premises.
TyresÃÂ¶ Centrum is located in TyresÃÂ¶, 5 km south-east of Stockholm. The center was built in 1965 and renovated and expanded in 1992. The center has good public transport access and is close to the highway leading directly to Stockholm.
Future municipality plans for the area include, amongst others additional construction of housing.
Source: Rodamco Europe