Rodamco Sverige has signed a letter of intent to acquire a shopping centre in Lund, southern Sweden, from Wihlborgs. The facility is under construction and completion is expected in September 2002. The total purchase price amounts to approximately SEK 500 mio (EUR 54,6 mio) and the net initial yield is approximately 7.25%.
The shopping centre is located in the western district of Lund, directly adjacent to the VÃ¤stra Ringen main road. The state of the art shopping centre will officially be opened on 19 September 2002. The shopping centre, the name of which will be announced some time before the opening, will be Lundâ€™s first major enclosed shopping centre.
The shopping centre has slightly more than 20,000 m2 of leasable retail space and approximately 1,000 parking spaces. The tenancy/merchandising mix will offer visitors a variety of products and price levels. A total of about 70 speciality shops will be in place when the new retail centre opens. Currently, approximately 98 percent of the leasable floor space has been let and full occupancy is expected by the time of the opening. The shopping centre is on a single level and designed in such a way that all stores occupy prime positions in the centre. The acquisition also includes a currently undeveloped plot of land, where additional retail space will be constructed.
The purchase price amounts to approximately SEK 500 mio (EUR 54,6 mio), including construction work on the adjacent site.
Owe LÃ¶fquist, Property Director, Rodamco Sverige:
'The acquisition of this shopping centre is entirely in line with our growth strategy, i.e. acquiring more shopping centres in dominant locations. Exposure to SkÃ¥ne has long been high on our list of priorities. The region has attractive economic growth potential, with a stable and positive demographic trend, which creates favourable conditions for continued positive developments in the retail sector. In addition to having the leading university in the Ã–resund Region, Lund has a favourably developing high-tech and innovative private sector, creating excellent conditions for continued growth of both the population base and purchasing power.'
Rodamco EuropeÂ's total shopping centre portfolio (including Lund) in Sweden now consists of 14 shopping centres; the 290.000 m2 of retail attract over 55 million visitors per annum and generate over EUR 1 billion in sales. All shopping centres are managed by Rodamco SverigeÂ's expert in house team. Rodamco Sverige is part of Rodamco Europe. Rodamco Europe is the leading property investment and management company with dominant retail positions in key European cities. Rodamco EuropeÂ's home markets are the Netherlands, Sweden, France and Spain. With a portfolio of approximately SEK 60 billion (EUR 6.5 billion), Rodamco Europe is one of the top 100 Euronext companies, listed in Amsterdam, Frankfurt, Paris and Brussels.
>i>(source: Rodamco Europe)