01 November 2016
Catella acted as advisor to Eurocommercial in the acqusition of a retail development property in Kristianstad.
Extract from Eurocommercial’s press release:
EUROCOMMERCIAL ACQUIRES SHOPPING CENTRE UNDERCONSTRUCTION IN KRISTIANSTAD
ANNOUNCEMENT OF SCRIP ISSUE PRICE
Eurocommercial has acquired a site in Kristianstad in the southern Skåne region of Sweden, upon which a majorshopping centre – C4 Shopping – and external hypermarket are being constructed, with completion expected bythe end of 2018.
Kristianstad is approximately one hour’s drive north-east of Malmö and is the regional capital of a catchment of 300,000 people which does not currently have an out-of-town shopping centre. The newly acquired retail zone ison the E22 motorway and will include a 31,600m2 shopping centre housing approximately 90 shops and restaurants. A 6,500m2 hypermarket is being built opposite the shopping centre, with a further 2,500m2 of complementary retail units alongside it. The Company has also conditionally committed to acquire a 20,500m2 retail park on the site. The necessary planning consents have been received for all units.
The net acquisition yield for the shopping centre and the hypermarket is 6% and will generate a total purchasecost of around SEK 1.325 billion (c. €134 million), depending on the level of net rental income achieved. The net acquisition yield for the retail park will be 6.5%, if acquired, which will generate an additional cost of around SEK350 million (c. €35 million). Ground works have begun and the hypermarket is expected to open by the end of 2017, with the shopping centre opening approximately one year later.
Peter Mills, Eurocommercial’s Director responsible for Sweden said, “The Swedish team, under the leadership of Martin Bjöörn, has developed considerable construction and leasing expertise in major extensions of our shopping centres over the years. The Kristianstad acquisition allows us to utilise this experience to acquire properties at an earlier stage, thus achieving much higher yields than simply buying existing assets in a highlycompetitive market.”
Telephone: +46 8 463 32 69