Starwood, Vencom divest retail asset in Sweden
Starwood Capital Group and Vencom, through separately controlled affiliates, have divested the retail park and shopping galleria, Bromma Block, in Stockholm, Sweden to the CBRE Global Investment Partners (CBRE GIP) managed fund, CBRE GIP European Co-Investment Fund (ECF).
The asset sold was majority owned by a controlled affiliate of Starwood Global Opportunity Fund IX (SOF IX), while Vencom was a minority investor and operating partner.
SOF IX in November 2013 purchased a portfolio of seven retail assets in prime locations throughout Sweden. The transaction was Starwood Capital Group's first investment in Sweden. SOF IX and Vencom sold six of the assets in 2016, and with the Bromma Blocks transaction have now sold the remaining property in the portfolio.
Starwood Capital Group vice president Richard Vaaje said: "The final asset sale from this investment, as well as the earlier sale completed last year, substantiates our investment thesis at acquisition that the steady growth of the Swedish economy, increase in retail sales and our asset management initiatives would produce strong risk-adjusted returns for our investors.
Vencom chairman Johan A. Gustavsson said: "During the years under our ownership, we have worked to actively develop Bromma Blocks to create value.
"For example, in May 2016, we obtained a building permit that created the possibility of enlarging the shopping mall by approximately 23,000m2, connecting it to a new tram station that is being constructed."
Source: Company Press Release