pbb Deutsche Pfandbriefbank has provided a SEK 275.5m (€29m) facility to Standard Life Investments’ European Real Estate Club fund for the acquisition of a retail park in in Sweden.
The five-year loan will finance the purchase of the 33,400 sq m Länna Retail Park, located just south of Stockholm, from German real estate company IVG.
pbb provided about €1bn on assets in the Nordic region in the first half of 2015 with Sweden accounting for about 6%, and Finland 1%, of the German bank’s €25.1bn total real estate loan book.
“Länna Retail Park has excellent visibility and a good tenant mix,” said Norbert Müller, head of real estate finance for Continental Europe West at pbb. “pbb continues to believe in the Nordic region and sees strong interest from both international and domestic clients.”
Länna Retail Park, which opened in 2002, is currently leased to 12 tenants including hypermarket City Gross, and consumer electronic chains Media Markt and Elgiganten.
Daniel McHugh, head of continental European real estate at Standard Life Investments, said: “Our strategy is to focus on prime assets in core European markets with some measured risk, and this acquisition perfectly reflects this approach. Retail sales in Sweden have grown steadily in recent years and Länna Retail Park is well placed to take advantage of further local growth.”
The Standard Life Investments European Real Estate Club completed its final close in October 2014 after raising €308m.