LUND, Sweden—TIAA Henderson Real Estate has inked a deal to acquisition of Nova Lund Shopping Centre here from Unibail Rodamco, for $190 million (€175m). The property will be acquired on behalf of TIAA-CREF and represents its first acquisition in the Nordic region.
The center comprises a 19,847 sq m shopping property, a 6,137 sq m adjacent complementary retail park and c. 1500 parking spaces.
Constructed in 2002, Nova Lund Shopping Centre is one of Sweden's best-performing regional shopping centers with an outstanding track record and a highly attractive retail mix. Located in Lund, in the south of Sweden, it is anchored by a strong mix of fashion retailers including H&M, Stadium, KappAhl, Intersport & Lindex.
“The acquisition of Nova Lund represents a unique opportunity to acquire one of the market's most coveted assets,” Johan Åström, head of investment, Sweden, TH Real Estate. “Its upmarket tenant line up and strong fashion identity, unparalleled in the primary catchment area, cements its spot as the primary retail destination for its c. 140,000 consumer catchment. The city of Lund has one of the highest purchasing powers in Europe with a projected population increase over the long term. The centre will continue to benefit from the centre's core characteristics, a stable cash flow and Sweden's positive retail sales growth.”
Following the acquisition of Nova Lund, TH Real Estate's Nordic portfolio under management now includes four shopping centers, four retail parks and one office.
TH Real Estate was advised by Linklaters and PwC. Unibail Rodamco was advised by Cushman & Wakefield, Catella and Vinge.
David Turner, head of TIAA European investment added:
“This marks the first step in TIAA-CREF's decision to invest in the Nordic region, a market identified as a key investment target within its European strategy. We particularly favour the retail sector for which we anticipate outperformance in sales growth, driven by population growth, positive consumer confidence and a stable economy. TIAA-CREF's intention is to become a long term investor in the region, forming strategic partnerships along the way."
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David Phillips
David Phillips is a Chicago-based freelance writer and consultant with more than 20 years experience in business and community news. He also has extensive reporting experience in the food manufacturing industry for national trade publications.
