Private equity firm Partners Group and DUET Private Equity invested an undisclosed amount of mezzanine financing in the Magasin du Nord flagship department store property in Copenhagen, the company said. The financing was provided as part of a transaction where Solstra Investment acquired the property.
Partners Group, the global private markets investment manager, provided
mezzanine financing for the acquisition of the Magasin du Nord flagship
department store property in Copenhagen (Denmark) on behalf of its clients.
The financing was provided as part of a transaction to complete the acquisition
of the property by Solstra Investment, on behalf of its main beneficiary owner
The property is located on the historical Kongens Nytorv square close to
Strøget, Copenhagen’s most exclusive inner city shopping area. The Magasin du
Nord department store benefits from direct access to one of the city’s major
metro stations and has more than seven million visitors every year. Magasin du
Nord, a fully owned subsidiary of Debenhams, has entered into a 24+ year triple
net lease (a lease requiring tenants to pay all utilities, insurance, taxes, and
maintenance costs) for the property.
The opportunity was jointly provided with financing partner DUET Private Equity
and their European real estate debt platform. While expected to generate
attractive interest returns, Partners Group’s facility enjoys significant
downside protection due to the equity in the capital structure.
Claude Angéloz, Partner and Co-Head Private Real Estate at Partners Group,
comments: “We are very pleased to have been able to secure this attractive
investment opportunity for our clients. It is consistent with our strategy to
provide financing for high quality properties in excellent locations in an
investment market which is currently capital constrained and where transaction
volumes remain subdued.”
About Partners Group
Partners Group is a global private markets investment management firm with over
EUR 20 billion in investment programs under management in private equity,
private debt, private real estate and private infrastructure. The firm manages a
broad range of funds and customized portfolios for an international clientele of
institutional investors. Partners Group is headquartered in Zug, Switzerland and
has offices in San Francisco, New York, São Paulo, London, Guernsey,
Luxembourg, Munich, Dubai, Singapore, Beijing, Seoul, Tokyo and Sydney. The firm
employs over 450 people and is listed on the SIX Swiss Exchange (symbol: PGHN)
with a market capitalization of over CHF 4 billion with a clear majority owned
by its 36 Partners and all employees.