TH Real Estate has secured a €91.7m (850m SEK) debt financing for Nova Lund Shopping Centre in Lund, Sweden.
The new seven year, fixed rate facility has been provided by SEB, a key player in their domestic real estate market, and a new relationship lender for TH Real Estate, on competitive terms.
The centre comprises a 19,847m² shopping centre, a 6,137m² adjacent complementary retail park and approximately 1,500 parking spaces.
Constructed in 2002, Nova Lund Shopping Centre is one of Sweden’s best performing regional shopping centres with an outstanding track record and a highly attractive retail mix. Located in Lund (20 km northeast of Malmö), in the south of Sweden, it is anchored by a strong mix of fashion retailers including H&M, Stadium, KappAhl, Intersport and Lindex.
TH Real Estate exchanged contracts with Unibail Rodamco for the acquisition of the centre in March on behalf of TIAA-CREF for €176m (1635m SEK).
Colin Throssell, head of treasury, TH Real Estate, commented: “This exciting project has allowed us to establish a new relationship with SEB, who have proved to be a flexible and reliable financing partner. It is a good example of how TH Real Estate, on behalf of its investors and projects, is able to attract competitive debt terms from the best lending partners in every market in which it operates. In executing this fixed rate loan, the debt has been designed and executed so as to boost our investor’s return over the target hold period, whilst providing sufficient flexibility for the business plan to be executed over this same period.“
Johan Åström, head of Nordics, TH Real Estate, added: “Nova Lund is one of the strongest retail assets in Sweden. Its upmarket tenant mix features both international and domestic retailers, making it the primary shopping destination for the local catchment of c.140,000 affluent shoppers. This investment demonstrates the appeal of Sweden as an optimum investment location to international parties.”
Mikael Franzen, head of real estate finance in Sweden at SEB, said: “SEB is pleased to close a first deal with TH Real Estate who is well aligned with SEB’s strategy of focusing on strong and professional real estate clients and investors that are active in the Nordics and Germany. We look forward to a longstanding relationship with the business, which is one of the leading global investors and managers in the real estate sector, with expansion plans for the Nordic region.”
