Property fund Pradera, backed by UK private wealth partnership LJ Partnership, buys 25 Ikea retail parks across Europe in €900m deal

 
William Turvill
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LJ Partnership-backed Pradera has acquired 25 retail parks across eight European countries (Source: LJ Partnership)

A retail property fund and asset manager has agreed a €900m (£780m) deal for 25 Ikea retail parks across Europe.

Pradera, which is backed by UK-based private wealth partnership LJ Partnership, is buying centres in eight countries across the continent as part of the deal.

The retail parks, situated next to Ikea stores, comprise around 500 units with a land area of around 538,000 square metres.

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Some 17 of the assets are based across Germany, France and Poland, with the deals expected to complete on 4 April. A further eight parks are in Sweden, Finland, Denmark, the Czech Republic and Switzerland and are due for completion on 31 August.

LJ Partnership acquired a “significant minority stake” in Pradera in May last year. The private wealth partnership’s chief executive Andrew Williams said: “We are delighted to have backed the acquisition process through our partnership with Pradera.

“LJ Partnership’s strategy of partnering with best in class managers continues to deliver excellent investment opportunities; execution and management capability and returns profiles.”

The acquisition was made by the Pradera European Retail Parks SCSp fund. Pradera chief executive David Fletcher said: “As the world’s leading home furnishings retailer, Ikea is a strong anchor in these locations.

“These parks have been developed and managed by Ikea Centres and are let to major tenants including Media Markt, OBI, Decathlon and Leroy Merlin.

“They greatly benefit from the drawing power that Ikea stores brings to these locations.”

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The deal has been announced at the start of a year when Pradera is looking to expand further, having launched a joint venture with Australian investment bank Macquarie in Asia last year.

Pradera chairman Colin Campbell said: “The acquisition of this portfolio and the creation of Pradera European Retail Parks SCSp demonstrates the significant synergies between Pradera and LJ Partnership.

“Pradera was able to source and secure the portfolio, enabling clients and associates of LJ Partnership to participate in an investment they otherwise wouldn’t have had access to.”

JLL advised Pradera on the deal, while Cushman & Wakefield acted for Ikea Centres.

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