AEW Europe has announced that it has acquired a high-end retail asset in central Copenhagen on behalf of the City Retail Fund. The transaction marks the first Danish acquisition undertaken by the Fund, which launched with a €125m first close in November 2015.
The asset has been acquired from a group of private local investors advised by RED Property Advisers – Cushman & Wakefield. It is a 450m² flagship retail unit on Købmagergade 13 and is let to Marimekko. Købmagergade is one of the busiest shopping areas in Copenhagen and houses a number of high-end fashion retailers and luxury department stores amongst other key interest points.
AEW Europe’s City Retail Fund has a total target fund raise of up to €400m in equity commitments which, with a maximum loan-to-value ratio of 50%, will provide the Fund with a total investment capacity of up to €800m. The Fund’s strategy is to build a portfolio of high quality, income producing retail assets that are well located within the prime European city centres.
Marc Langenbach, fund manager at AEW Europe commented: "We believe that the asset in Copenhagen is an attractive acquisition for the City Retail Fund. The Fund intends to invest further in assets in locations which we believe will strengthen over the long term. Over the coming months, we will continue to expand our core high street retail portfolio in Europe’s leading city centres.”
Alexander Strassburger, executive director in investment at AEW Europe said: “In line with the Fund’s strategy, Copenhagen is a well-established retail destination that benefits from an increasing presence of high profile tenants and newly refurbished shops and department stores. New openings are expected to drive footfall and rental growth on Købmagergade. Investments like these demonstrate AEW Europe’s ability to source attractive opportunities across different geographies, and we intend to invest in the region further.”
AEW Europe recently acquired its first Spanish asset in central Madrid on behalf of the City Retail Fund. The property is located on Madrid’s ‘Golden Mile’ Calle Serrano in the heart of Madrid and is scheduled for delivery in Q3 2017.
