Pradera launches European retail parks fund in €900 million deal with IKEA Centres
Pradera, one of Europe’s leading specialist retail property fund and asset managers, has announced the first closing of the Pradera European Retail Parks SCSp, a Luxembourg fund. In a EUR 900 million transaction agreed with IKEA Centres, the Fund has signed a contract to acquire 25 prime retail parks next to IKEA stores in eight European countries.
Pradera was able to complete the deal with equity investment from LJ Partnership, the private wealth partnership, which took a significant minority stake in the business in May 2016.
The portfolio of retail parks situated next to IKEA stores comprises around 500 units with a GLA of around 538,000 sqm. Completion on 17 assets located in Germany, France and Poland is expected on 4 April 2017, with a further eight retail parks in Sweden, Finland, Denmark, the Czech Republic and Switzerland due to complete on 31 August.
David Fletcher, Chief Executive of Pradera, explained that the properties being acquired from IKEA provide an excellent portfolio for the Fund, which has been established to invest in income-producing retail parks across Europe, stating: “As the world’s leading home furnishings retailer, IKEA is a strong anchor in these locations. These parks have been developed and managed by IKEA Centres and are let to major tenants including Media Markt, OBI, Decathlon and Leroy Merlin. They greatly benefit from the drawing power that IKEA stores brings to these locations.”
The new Fund comes at the start of a year in which Pradera looks to expand further, having launched a successful joint venture with Macquarie in Asia last year. Pradera Retail Asia already has over EUR 900 million of assets under management in China.
Colin Campbell, Chairman of Pradera, commented: “The acquisition of this portfolio and the creation of Pradera European Retail Parks SCSp demonstrates the significant synergies between Pradera and LJ Partnership. Pradera was able to source and secure the portfolio, enabling clients and associates of LJ Partnership to participate in an investment they otherwise wouldn’t have had access to.”
Andrew Williams, CEO of LJ Partnership, said: “We are delighted to have backed the acquisition process through our partnership with Pradera. LJ Partnership’s strategy of partnering with best in class managers continues to deliver excellent investment opportunities; execution and management capability and returns profiles.”