TIAA-CREF Picks Up Shopping Center in Sweden for $190M
- Mar 11, 2015
Sweden—TIAA Henderson Real Estate has agreed to buy the Nova Lund Shopping Centre in Sweden from Unibail Rodamco for approximately $190 million (€176 million). The asset is being acquired on behalf of TIAA-CREF, marking its first purchase in the Nordic region’s real estate market.
The property is located in Lund, in the southern part of Sweden, and offers a shopping area of about 213,600 square feet (19,847 square meters), an adjacent retail park of 66,058 square feet (6,137 square meters), as well as 1,500 parking spaces.
Built in 2002, Nova Lund Shopping Centre is currently one of the best performing regional shopping centers in the country, attracting between 2 and 3 million visits per year. It is anchored by a highly attractive mix of fashion retailers, including H&M, Stadium, KappAhl and Intersport & Lindex.
The transaction is expected to close during Q3 2015. TH Real Estate was advised by Linklaters and PwC, while Unibail Rodamco was advised by Cushman & Wakefield, Catella and Vinge.
“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 favor 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,” David Turner, head of TIAA European Investment, TH Real Estate, said.
Following the acquisition, TH Real Estate’s Nordic portfolio under management now includes four shopping centers, four retail parks and one office asset.
TIAA Henderson Real Estate Limited (TH Real Estate) is a global real estate investment management company owned by Teachers Insurance and Annuity Association of America (TIAA) and Henderson Global Investors. TH Real Estate securities products distributed in North America are advised by UK regulated subsidiaries or TIAA-CREF Alternatives Advisors LLC, a registered investment advisor and wholly owned subsidiary of TIAA, and distributed by Teachers Personal Investors Services, Inc.