M&G Real Estate acquired the BIG Shopping Center in Copenhagen more than five years after the acquisition of the 40,700 m² retail park by CBRE Investment Management.
CBRE IM, which sells the asset on behalf of its European Co-Investment Fund (ECF), said it was one of the largest single-asset retail deals since the start of the pandemic in the Nordic countries and in Europe.
Opened in 2015, BIG is a hybrid commercial asset, combining the attributes of a commercial park and a shopping center. It is fully occupied with 24 tenants and has two supermarkets and two large electronics stores as its main tenant.
“As a convenience shopping destination, BIG has proven to be resilient in the face of the changing retail landscape,” said Mark Kouters, Fund Manager for ECF.
“Even with the increase in online shopping and COVID, BIG has increased the occupancy rate over the past few years.
“We have completed our business plan for this asset, which consisted of improving the composition of tenants, unlocking the reversion of ground-floor units and increasing occupancy levels.
“In a context of strong investor appetite for Nordic retail, the time has come to exit, and we are very happy to have achieved a positive sale for our investors. “
Simon Ellis, Fund Manager at M&G, said: “Retail fleets have shown their resilience during the pandemic, doing particularly well against online shopping and playing a key role in online order fulfillment.
“This transaction reflects the attractive opportunities we see to acquire high quality assets with a strong track record of performance at a healthy performance premium relative to other sectors. We will continue to allocate selectively as we seek to provide consistent returns to our investors. ”
Robert Göthe, Director of Assets and Investments for M&G in the Nordic Countries, said: “BIG is uniquely located with excellent transport links and is an important social hub for the local community.
“The pipeline for this kind of unique retail warehouse offering in Copenhagen, which offers a wide range of retail and experiential shopping, is very limited. Shifting consumer attention to bulky goods, food, and DIY items, which remain immune to online shopping habits, will also ensure resilient shopping park rents as the economy continues to grow. and retail sales are stabilizing.