Bayerische Versorgungskammer boosts Swedish property exposure with Invesco’s help
A property fund run by Invesco Real Estate has bought the Barkaby retail park near Stockholm for €63m, for a fund it runs for one of Germany’s largest pension schemes.
The asset manager bought the retail building for the iii-BVK Europa-Immobilien Spezial fund, a structure that allows for bespoke investments more readily than off-the-shelf mutual funds.
The fund with 21 assets worth about €930m is run specifically for the Bayerische Versorgungskammer, and increases the scheme’s access to hard assets outside Europe’s peripheral markets.
Bettina Knirsch, IRE’s director for fund management, says: “The prosperous location means that the retail park itself is expected to expand as well as benefit from additional residential and commercial space which is being developed nearby.”
IRE believes such retail will perform strongly over the medium-term, but it is important to focus on “strong real estate fundamentals of a high quality property”.
Rob Johnston, IRE’s senior director UK and Nordic transactions, says: “The immediate vicinity surrounding the retail park, known as Barkarby City, is one of Stockholm’s largest urban development projects over the next 10 years comprising improved infrastructure and residential development.”