Starwood to offload prime retail properties in Sweden for SEK 3.1bn


retail-1424041_640Global private equity Starwood Capital Group has agreed the sale of six prime retail assets in Sweden to a company managed by Swedish pension fund AP3 for SEK 3.1bn (€137m).

The firm tapped its freshly-closed Starwood Distressed Opportunity Fund IX (SOF IX) to buy a portfolio with seven properties, include the assets being sold now, back in November 2013.

The seller then was Swedish retail group Kooperativa Förbundet, which controls the country’s second-largest supermarket chain, Co-op.

SOF IX held the assets as a majority owner and property investment group Vencom was a minority shareholder and operating partner of the portfolio.

The only location that the two partners will keep after the deal is wrapped up in September will be  Bromma Blocks in Stockholm.

Richard Vaaje, vice president at Starwood, said, “We are pleased that these retail assets have benefited from the steady growth of the Swedish economy and strong retail sales, as projected in our investment thesis. ”

Johan Gustafsson, chairman of Vencom, added, “During the years under our ownership, we have worked to actively develop these assets to create value.”

In May this year, Starwood and joint venture partner Brookfield agreed to sell a portfolio of nine hotels located in major cities across Eastern Germany to FDM Management, a vehicle created by Foncière des Regions and institutional investors. The properties were part of SOF IX’s portfolio and were acquired in 2012.

The firms did not disclose the price of the deal but reports from earlier this year put the valuation at around €700m.

Since inception Starwood has acquired real estate assets for a total of $77bn globally, according to its website.

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