StepStone Real Estate said Jan. 31 that it recapped a portfolio of seven community shopping centers in partnership with NREP. The value of the transaction was 1.4 billion DKK ($234.3 million). Nykredit provided debt financing. The properties, located in greater Copenhagen and Aarhus, are moderate-size grocery-anchored shopping centers that include other necessity-retailers such as pharmacies and medical offices, as well as experiential based retailers such as fitness centers, and food and beverage outlets.
London (January 31, 2018) – StepStone Real Estate (“SRE”), a leading global real estate investment firm, today announced that it has recapitalized a portfolio of seven necessity- based community shopping centres in partnership with NREP, a leading Nordic real estate investment manager and the current manager of the portfolio. Total value of the transaction is over 1.4 billion DKK, with debt financing provided by Nykredit.
Rasmus Norgaard, CIO of NREP, said, “This transaction created further liquidity and realized gains for our investors following a sizable portfolio sale we completed in late 2017. By partnering with StepStone, we’ve also secured additional capital and several more years to further develop value in this portfolio longer term.”
The properties are all moderate-size grocery-anchored shopping centres that include other necessity-retailers such as pharmacies and medical offices, as well as experiential based retailers such as fitness centres, and food and beverage outlets. All are located on commuter rail and other major transportation facilities in greater Copenhagen and Aarhus, Denmark’s second largest city. Several properties have additional residential development opportunities.
“SRE is excited to partner with NREP, who we consider to be an exceptionally strong fund manager, in the recapitalization of this portfolio,” commented Josh Cleveland, a Partner of StepStone Real Estate. “We are attracted to this portfolio given continued demand for well-located necessity-based retail and the positive demographic trends, strong economies and growth potential in the Nordic region and in Denmark in particular.” Mr. Cleveland added, “Over the last twelve months, SRE has committed more than $500 million of equity to six transactions in Europe and the US, in partnership with existing management and stakeholders. When combined with over $2 billion in primary commitments to real estate funds in 2017, we continue to position SRE, and as importantly our clients, as the equity partner of choice for leading real estate managers and sponsors.”
About StepStone Real Estate
StepStone Real Estate (“SRE”) is the real estate asset manager and advisor of the StepStone Group (“StepStone”), a leading private markets firm that oversees approximately US$130 billion of private capital allocations, including more than US$34 billion of assets under management. In January 2018, SRE announced its agreement to acquire Courtland Partners. Founded in 1995, Courtland Partners is a leading institutional investment adviser focused exclusively on real assets and currently advises on approximately US$95 billion.
StepStone prudently integrates fund investments, secondaries and co-investments across private equity, real estate, infrastructure and private debt to create solutions that are customized according to the objectives of any private markets investment program. StepStone is a global firm with 15 offices in 11 countries around the world including in Beijing, Dublin, Hong Kong, La Jolla, London, Luxembourg, New York, Perth, San Francisco, São Paulo, Seoul, Sydney, Tokyo, Toronto and Zurich.
NREP is a leading Nordic real estate investment firm focused on defensive value-add investment strategies in select segments of the Nordic market. NREP was established in 2005 and has since then raised 12 funds and built market leading operating platforms in modern logistics, self-storage, necessity driven retail, student housing and middle-income residential. The firm currently has total assets under management of €3.5 billion and employs over 100 professionals across its main offices in Copenhagen, Stockholm, Helsinki, and Oslo.