ING Real Estate Investment Management acquires Tyresö Centrum in Stockholm

ING Real Estate Investment Management has acquired Tyreso Centrum on behalf of its European Shopping Centre Fund (ESCF) for €82 million. The investment reflects an initial yield of 6.2%. ESCF is targeting up to €1.5 billion of investments in dominant shopping centers across continental Europe.

ING Real Estate Investment Management Europe (ING REIM Europe) had a first closing for its European Shopping Centre Fund last month. ESCF is a private real estate fund that will invest in shopping centers across Continental Europe.
 
The shopping centre is located in Tyresö, an affluent municipality located south of Stockholm. The property features a mall in two levels and offers 65 retail units and 850 parking spaces to visitors. Main anchors are ICA, Coop, Systembolaget, Kappahl and H&M. The vendor was Unibail Rodamco.
Florencio Beccar, Fund Manager for ESCF commented that the investment marks a considerable milestone for ESCF, coming just one month after its First Closing. Beccar noted that Tyresö Centrum is a perfect match to ESCF’s investment strategy, adding that it is a core shopping centre that is dominant within its dynamic and growing catchment area.
 
The property offers substantial upside potential based on the strong historical performance by retailers, continued visitor and sales level growth and attractive lease profile. All of these characteristics allow value enhancing activities in the short to mid-term through the active management style of the fund, he said.
 
Pieter Hendrikse, CEO of ING Real Estate Investment Management Europe said the firm has identified several investment opportunities in Western Europe that present a similar profile to Tyresö Centrum and hopes to be able to complete on these by the end of Q1 or beginning of Q2, which coincides with the timing of our Second Closing.
 
According to Hendrikse, Tyreso is an excellent first investment for this Fund which forms a critical element of the firm’s strategy to access future rental and capital market growth for its clients.
ING Real Estate Investment Management is a leading global real estate investment manager with a total portfolio of €66.2 billion as per 31 December 2010. The firm’s main focus has been core/core-plus direct investment strategies, reflecting the core/core-plus profile of the proprietary real estate portfolio of ING Group’s insurance business.
 
ING REIM has gradually diversified its product offerings in accordance with demand in the market for higher risk strategies and indirect strategies, such as fund of funds and listed real estate equity.

 

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