Meyer Bergman has completed the purchase of a portfolio comprising 11 prime retail properties in central Oslo’s historic shopping district on behalf of its latest fund, Meyer Bergman European Retail Partners III, and co-investment clients. The NOK5.3bn (€554m) portfolio was sold by a Norwegian company approximately 65% owned by Søylen Eiendom and the balance by Madison International Realty.
Markus Meijer, CEO of Meyer Bergman, said: “This superbly located portfolio in downtown Oslo allows us to take a holistic approach in managing an estate that accounts for about one third of the available retail space in the historic centre. We see great potential for our investors to benefit as we bring new and exciting international retail concepts to the existing tenant mix of luxury and mass-market brands. This is the first investment of our latest fund, for which we have three additional investments scheduled to complete in the first quarter of 2016.”
The portfolio’s properties are concentrated on or around Karl Johans Gate, the prime shopping street of the Norwegian capital, and include the Steen & Strøm and Eger Karl Johan department stores. Its tenants include Hermès, Gucci, Bottega Veneta, and Georg Jensen.
Meyer Bergman European Retail Partners III is the latest fund managed by the European retail, mixed-use specialist. The fund will continue its predecessor’s successful value-add investment strategy, targeting gross leveraged annual returns of 18%. It will invest mainly in retail-anchored, mixed-use properties in core Western European and Nordic real estate markets that offer opportunities to enhance operating income through hands-on asset management.
Meyer Bergman seeded its now-closed second fund in 2012 by forward-funding Bradford’s Broadway shopping centre development in Northern England, which opened last month. The fund capped its equity-raising in Q4 2014 at €750m, which is now fully committed. The portfolio includes buildings on Bond Street, Piccadilly and Queensway in London, a prime retail investment on the Champs-Elysees in Paris and two Karstadt department stores in Berlin.
Meyer Bergman was advised by Akershus Eiendom, Arctic Securities, BA-HR, BER, and PwC on the Oslo portfolio purchase.
