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Rockspring’s €77m Sweden buy

The London-based property fund management firm has snapped up a portfolio of six retail assets in Stockholm and other Swedish cities for its core-plus/value-added fund, TransEuropean Property Limited Partnership V.

Rockspring Property Investment Managers has snapped up six retail assets across Sweden for its core-plus, value-added investment fund, TransEuropean Property Limited Partnership V.

London-based Rockspring said the portfolio stretched to 45,000 square metres with the asets located in Malmö, Lund, Västerås, Borås and Stockholm. It includes a prime city centre department store in Malmo, leased to Swedish chain Ahlens.

The deal marks Rockspring’s second acquisition in Sweden, following the €34 million purchase of a logistics warehouse in Greater Stockholm in November last year, and follows a number of other deals across European cities in recent months, such as a shopping centre in Olsztyn, Poland, and retail warehouse in Dortmund, Germany. The German asset was acquired for its Rockspring German Retail Box Fund, which buys retail warehouse assets.

Robert Gilchrist, chief executive of Rockspring, said the Sweden deal was in line with the strategy of finding well-located, well-let assets offering the potential for both income and capital growth. He added that it also increased the firm’s exposure to the Swedish market, which it expects to benefit from strong macro-economic fundamentals and low vacancy rates.

The company officially began fundraising for the fifth fund in its TransEuropean series in August last year, with plans to raise €400 million in commitments for the vehicle.

The two-year investment period of its predecessor fund, TransEuropean IV, ended in June 2011. Rockspring raised €274 million in commitments for the vehicle in 2008 from 13 investors, including the School Employees Retirement System of Ohio, Woelbern Invest AG, Industriens Pension, Vital Forsikring ASA, Windsor Trust and the National Pension Service of Korea.