Cornerstone Real Estate Advisers Europe, a subsidiary of Cornerstone Real Estate Advisers LLC, have announced that it has completed the acquisition of a prime high street retail building let to Sweden’s largest department store group Åhléns, in central Malmö for SEK357m (€38.3m).
The 6,423m² (70,000ft²) building is set over three floors and fully let to Åhléns until 2025. Located on Malmö’s main pedestrian city centre high street, Södergatan with extensive nearby parking, bus links and the city’s central railway station.
Malmö, part of the Öresund region, is the most populated region in the Nordics and accounts for around 25% of the total combined Swedish and Danish GDP, with a further 400,000 people expected to be living in the area by 2030.
This acquisition reflects the execution of a strategy managed by Cornerstone and adds to its portfolio in the Nordic region, which includes Center Syd shopping centre. adding 35 new retail units. Located in Löddeköpinge on the outskirts of Malmö, the shopping centre has recently completed their €36m extension and refurbishment. The property was 90% let at the time of reopening in November 2015.
Jorge Duarte, senior director, fund management – Europe, commented: “This acquisition secures a prime asset in the centre of one of Northern Europe’s most dynamic cities. With its long lease to Sweden’s largest department store group and strong macroeconomic fundamentals, this acquisition is indicative of the type of investment we are looking to make as we continue to invest in core real estate in major European markets.”
Martin Kjellstrom, transaction manager Nordic region, added: “This transaction is an example of our ability to source attractive investment opportunities for our clients. By leveraging the expertise of our local team, as well as our local knowledge of the Swedish market, we believe we can increase the value of an already strong income-producing asset.”
