Daniel Turner, project manager Capital Markets, Cushman & Wakefield comments:
"This transaction shows that the appetite is still strong for grocery anchored, convenience led retail locations, such as Ingelsta. There is a sustained demand for quality retail properties with the right tenant mix to meet the future”.
The total lettable area for Ingelsta Retail Park comprises approximately 37,000 square meters. The purchase price amounts to approximately SEK 680 million. The buyer is Deka Immobilien which is making its second retail acquisition in Sweden within a short time. In September 2018, Deka carried out one of the previous year's largest retail transactions through the acquisition of Länna Market in Huddinge for approximately SEK 840 million from Aberdeen Standard Investments.
“The opportunity to develop additional retail on the property gives real value uplift both in the short and long term for this already very strong retail location.”
Rico Estate Development (RED) advised Aberdeen Standard Investments on the creation and execution of the business plans for Ingelsta Retail Park and Länna Market. For both Ingelsta Retail Park and Länna Market, RED, carried out numerous project developments, stabilising the assets by bringing new tenants into the parks, re-gearing the existing leases and removing all the historical vacancies. Linklaters was Aberdeen Standard Investments legal advisor in both transactions.
Aberdeen Standard Investments’ European Real Estate Club I purchased Länna Market in Q3 2015 with a weighted average unexpired lease term (WAULT) of 5 years and an occupancy rate of 88%. During the Fund’s ownership of Länna Market the main anchor tenants’ leases were extended and five new tenants introduced to the park including two new anchor tenants. All in all, the WAULT was extended to 8.4 years and the occupancy leasing rate was 100% at the time of sale.
Ingelsta Retail Park was acquired by Aberdeen Standard Investments’ European Real Estate Club II in Q2 2016. Its WAULT was 2.5 years and its occupancy rate 89%. Following the acquisition, three new tenants were introduced and agreements for leases signed with a further three tenants. By disposal, over 90% of all rental income had been newly signed or renewed. Ingelsta’s WAULT at the disposal had increased to 8.3 years and the occupancy rate to 96%.
During the past six months, Cushman & Wakefield has acted as sales advisor in three major retail transactions on the Swedish market. The transactions have a total sales volume of SEK 2.1 billion and a total area of 114,000 square meters. Cushman & Wakefield thereby further strengthens its market-leading position in the retail segment in Sweden.