Independent private equity real estate investor MGPA has acquired a high street retail asset leased to the Illum department store in central Copenhagen for around EUR 220 mln, including senior debt provided by Swedish bank SEB. The vendor is Magillum Properties, a part of the Solstra Group, which owns the Illum retail operation.

The acquisition represents a joint venture between MGPA Europe Fund III, Swiss investment manager Partners Group and an unnamed Canadian institutional investor. The MGPA fund holds a majority stake and controlling interest.

The property consists of two adjacent buildings with a total of 40,300 m2 of gross lettable area in Copenhagen's prime retail district. The majority of the space is leased to historic department store operator Illum on a 15-year basis. MGPA also intends to create high street retail units, including flagship stores for international retailers, the company said in a statement on Monday.

'This builds on our strategy to acquire key buildings in the most prominent retail locations and add value through redevelopment and leasing,' said Laurent Luccioni, CEO of MGPA in Europe. 'The asset provides excellent market opportunities for the creation of flagship stores and other retail units for both local and international retailers, capitalising on its prime location in Copenhagen.'

C&W advising Magillum Properties on the deal.