Baar-Zug, 4 March 2011
Partners Group invests in Magasin du Nord flagship department store property in Copenhagen on behalf of its clients
Partners Group, the global private markets investment manager, provided mezzanine financing for the acquisition of the Magasin du Nord flagship department store property in Copenhagen (Denmark) on behalf of its clients.
The financing was provided as part of a transaction to complete the acquisition of the property by Solstra Investment, on behalf of its main beneficiary owner Alshair Fiyaz.
The property is located on the historical Kongens Nytorv square close to Strøget, Copenhagen's most exclusive inner city shopping area. The Magasin du Nord department store benefits from direct access to one of the city's major metro stations and has more than seven million visitors every year. Magasin du Nord, a fully owned subsidiary of Debenhams, has entered into a 24+ year triple net lease (a lease requiring tenants to pay all utilities, insurance, taxes, and maintenance costs) for the property.
The opportunity was jointly provided with financing partner DUET Private Equity and their European real estate debt platform. While expected to generate attractive interest returns, Partners Group's facility enjoys significant downside protection due to the equity in the capital structure.
Claude Angéloz, Partner and Co-Head Private Real Estate at Partners Group, comments: "We are very pleased to have been able to secure this attractive investment opportunity for our clients. It is consistent with our strategy to provide financing for high quality properties in excellent locations in an investment market which is currently capital constrained and where transaction volumes remain subdued."