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Swedish Retail Portfolio Sells for $74M

SWEDEN-The assets acquired by Oppenheim Immobilien KAG are fully occupied and located in robust trade areas.

By Joe Clements | Updated on May 08, 2007

SWEDEN-Continuing to gobble up this Nordic nation’s real estate stock, German-based Oppenheim Immobilien KAG has purchased a quintet of high-end retail assets from international construction giant Skanska Commercial Development. Acquired for $74 million USD, the 258,000-sf portfolio marks the sixth deal completed recently in Sweden by Oppenheim and is reflective of a solid market for retail space, says Cecilia Fasth, the president of Skanska’s Fatigheter Goteborg division.

“We are seeing demand from tenants as well as from investors, and accordingly, we are continuing to focus on developing new projects,” says Fasth. The merchant-building strategy described by Fasth is similar to the approach that has become popular among US contractors and developers in the past 12 months as a way to create a regular income stream, including several well-known shopping center developers. Fasth’s group is part of the Skanska Nordic region, an entity that has offices in Gothenburg, Oresund and Stockholm and does business in Denmark and Finland as well. Besides retail, the firm is also active constructing office and industrial space in the region.

The assets traded to Oppenheim are fully leased, including two centers that will open this summer. All the properties are described as being in markets that have performed impressively, benefiting from one of Europe’s most stable economies and a super-low inflation rate. The country’s healthy financial condition offers hope of near-term upside, according to the new ownership, which already controls 1.3 million sf of commercial real estate in Sweden assembled from the previous acquisitions.

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