Grosvenor Europe has sold the Burlöv Center and surrounding land in Malmö, Sweden, on behalf of the Grosvenor European Retail Partnership (GERP) Fund for SEK 500 million (€49.6 million).
The buyer is Malmo-based investor Trianon which has bought the asset in a 50:50 joint venture with property company Wallfast.
The sale of Burlöv Tågarp 15:4 comprises the 43,000 sq m Burlöv Center as well as adjacent land with planning consent for 48,000 sq m of apartments.
The shopping centre’s anchor tenants include Maxi ICA supermarket, H&M, the government-owned alcohol chain Systembolaget and a Nordic Wellness gym.
The current rental income is SEK 50 million per year with potential to increase this to approximately SEK 90 million per year according to Trianon.
Most of value in future housing, Trianon states
“In the long term, housing will account for 80-90% of the property value, which is completely in line with Trianon’s strategy,” said Trianon CEO Olof Andersson.
Grosvenor acquired the asset from Unibail-Rodamco on behalf of GERP in 2011. It was part of a portfolio that also included Haninge Centrum, Bålsta Centrum and Väsby Centrum in Stockholm.
“Our goal has always been to make our retail-led assets into dynamic mixed-use schemes which serve the wider needs of the community,” said Grosvenor Europe’s Nordics director Car Strufve.
“At Burlöv, we have been able to deliver substantial improvements, and work with the local municipality to secure further development potential, which will create an enhanced sense of place for the local community. Having secured a strong future for the asset it is time that we focus our activities on our core cities, which in the Nordics is Stockholm.”