CBRE Global Investment Partners (GIP), the strategic partnership division of parent company CBRE Global Investors (GI), has acquired a retail asset in Stockholm for a figure understood to be in the region of SEK2.1 billion ($232.7 million; €219.8 million).
CBRE GIP purchased Bromma Blocks, a 585,000 square foot asset located in Bromma, one of the Swedish capital’s wealthiest districts, in partnership with Stockholm-based private equity real estate firm Vencom Property Partners.
Bromma Blocks is 96 percent leased and comprises a 252,000 square foot shopping center and a 321,000 square foot retail park, with parking space for 2,300 cars. Key tenants at the site include Coop, XXL, Ahlens, H&M, Jula and Rusta. Planning permission to double the retail park’s floor space, has already been granted.
The asset was bought using capital from CBRE GIP’s European Co-Investment Fund (ECF), which was closed last February after attracting $840 million towards an $800 million target. The capital raise was the largest in the firm’s history for a closed-ended vehicle.
The seller was Greenwich, Connecticut-based private investment firm Starwood Capital Group, which acquired Bromma Blocks in 2013 via its Starwood Global Opportunity Fund IX. The asset was the firm’s first purchase in Sweden.
“The acquisition of Bromma Blocks is in line with one of the fund’s key strategies – to acquire dominant retail assets in liquid markets that can be enhanced through further development and refurbishment,” said Charles Baigler, fund manager of ECF. “We are working with a specialist local operating partner to deliver the business plan.”
For the Bromma Blocks deal, CBRE GIP was advised by CBRE and Linklaters on the transaction.
CBRE GIP’s most recent deals, on behalf of ECF, were the €150 million purchase of the BIG Shopping Center in Copenhagen in May, and the £88.8 million acquisition of the Willow Brook retail park in Bristol.