AXA Real Estate sold a retail property portfolio containing 72 assets to a Swedish state owned pension fund Tredje AP-fonden (AP3). The portfolio includes some 129,000 sqm of primarily food retail space, with the 72 units ranging in size from 345 to 10,132 sqm. The properties are scattered across Sweden providing the acquirer with geographic diversification benefits as well as direct exposure to the well performing food retail sector in one of Europe’s strongest economies. More than 80% of the portfolio’s income is secured by market leading domestic food retailers with excellent covenants. To add value to the portfolio, AXA Real Estate as asset manager has refurbished majority of the units to provide the tenants with modern stores with good technical standards. “This comes at a time where state and private pension funds in Sweden, and across Europe as a whole, are increasingly looking towards the secure and stable cash flows provided by defensive real estate assets in order to meet their liability-matching needs,” said Henrik Bastman, Head of Asset Management in the Nordic Region at AXA Real Estate.
