EUROCOMMERCIAL PROPERTIES NV INCREASES SWEDISH INVESTMENT


Eurocommercial Properties N.V. ("ECP") announced today that it has acquired four further shopping centres in Sweden at a cost of € 86 million with an overall net yield of 7.5%. ECP now has a total of six centres there with a value of about € 158 million, representing approximately 13% of the Company's € 1.2 billion property portfolio. The balance being Italy (40%), France (40%) and The Netherlands (7%). Shopping centres and other prime retail property now account for around 87% of the total. Three of the shopping centres were acquired as a portfolio from ICA AB and the other from Kf Gota, a member of the Cooperative Union. These two organisations are the major food retailers in Sweden.
 
ECP director responsible for Scandinavia, Peter Mills, said that he believes that the relationship the Company has developed with major Swedish retail groups will be of great value as it consolidates its position as one of the major investors in shopping centres in the country, as it has already done in France and Italy. He added that the higher yields available for good Swedish shopping centres are attractive when compared with much of Western Europe where there is an extremely limited supply of sound investments.
 
For additional information please contact:
 
Peter Mills
+ 44 20 7925 7860
Jeremy Lewis
+ 44 20 7925 7860
Evert Jan van Garderen
+ 31 20 530 6030
Tom Newton
+ 44 20 7925 7860
Tim Santini
+ 44 20 7925 7860
 
 
Details of the properties acquired follow.
 

Property Details
 
ICA CENTRES
 
Summary
Price: SEK 545 million (€ 61 million).
Net income: SEK 41 million (€ 4.56 million)
Net yield: 7.3% after acquisition costs
Total area: 45,500m²
ICA rent: 60% of total
ICA area: 56% of total
Average gallery rents: SEK 970 per m² (€ 108 per m²)
Vendor: ICA AB
 
 
 
 
 
Town
Address & Location
Description
Gallery Floor Area
Major Gallery Tenants
Average Gallery Rent
ICA Hypermarket
Car spaces
Norrköping
 
Sweden's 8th largest city with population 122,000
MaxiHuset
 
Ingelsta retail park
Norrköping's largest out of town shopping centre comprising hypermarket,
16 stores and restaurant - opened September 1994
7,000m²
 
H&M
KappAhl
Lindex
Stadium
Din Sko
JC
Guldfynd
 
 
SEK 1,103 per m²
(€ 123 per m²)
Hypermarket floor area: 9,580m²
 
15 year lease without break
 
 
1,000
Skövde
 
Population 50,000
MaxiHuset
 
Main retail park north of city
A shopping centre comprising hypermarket, 12 stores and restaurant - opened in 1996
 
9,000m²
KappAhl
Lindex
BR Leksaker
Skopunkten
Siba
Sportex
Elgiganten
 
SEK 905 per m²
(€ 101 per m²)
Hypermarket floor area: 7,500m²
 
15 year lease without break
1,000
Laholm
 
Municipality: Population 24,000
 
 
Mellby Centre
 
Halland west coast on E6 motorway
A hypermarket and service gallery with 11 stores and restaurant - opened in 1978
3,000m²
KappAhl
Lindex
Guldfynd
SEK 880 per m²
(€ 98 per m²)
Hypermarket floor area: 8,235m²
 
15 year lease without break
700
 

 
SAMARKAND, VÄXJÖ
 
 
Summary
Price: SEK 232 million (€ 25.8 million).
Net income: SEK 19.2 million (€ 2.133 million)
Net yield: 7.7% after acquisition costs and SEK 13 million contribution towards hypermarket refurbishment
Total area: Retail - 22,900m², Office - 1,600m²
Hypermarket (Coop Forum): 12,000m² - 50% of total rental income
Vendor: Kf Gota
 
 
 
Town
Location
Description
Floor Area
Major Tenants
Average Retail Rent
Coop Forum Hypermarket
Car spaces
Växjö
 
Population 75,000
 
Regional capital of Kronobergs County Population 180,000
The region's dominant retail park
The major interest in the Samarkand retail park including hypermarket and several multiple retailers
24,500m²
 
Coop Forum
H&M
KappAhl
Stadium
Systembolaget
OnOff
Intersport
Kf Gota office headquarters
SEK 1,056 per m²
(€ 117 per m²)
 
Hypermarket floor area: 12,000m²
 
Lease until December 2008
 
 
Approx. 1,000
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Group offices:
 
London
4 Carlton Gardens
London SW1Y 5AB
Tel: 44(0) 20 7925 7860
Fax: 44(0) 20 7925 7888
 
 
 
Milan
Piazza della Repubblica 30
20124 Milan
Tel: 39 02 63 28 14 227
Fax: 39 02 29 00 00 53
 
 
Paris
10 Rue du Havre
75009 Paris
Tel: 33 (0) 1 48 78 06 66
Fax: 33 (0) 1 48 78 79 22
 
GlobeNewswire