ABP breaks into Norway
5 August 2008

Written by Sophie Baker

ABP’s recent investment in the Nordics is down to research showing that “GDP growth in the Scandinavian countries will be the highest in Europe in the coming years,” according to ABP investment spokesman, Michel Meijs.

ABP Pension fund (ABP), a Dutch organisation, and Klépierre SA (Klépierre), a France-based real estate company, joined forces and entered into an agreement to acquire 100 per cent of the outstanding share capital of Norwegian company Steen & Strøm ASA for NOK 21.9bn (€2.7bn).

Steen & Strøm is the largest shopping centre owner, developer and manager in Scandinavia, owning a real estate portfolio consisting of 30 shopping centres in Norway, Sweden and Denmark. The centres are currently 96.4 per cent let.

The transaction allows ABP and Klépierre to gain magnitude in the Scandinavian shopping centre platform in the Nordic region. ABP will own 43.9 per cent and Klépierre 56.1 per cent of Steen & Strøm. The company will retain its existing management and employees and will remain a separate legal entity.

Patrick Kanters, managing director Global Real Estate, on behalf of ABP, said: “It is very rare to be able to get substantial exposure to one of Europe’s leading fully integrated shopping centre platforms. This acquisition complements our strategic portfolio of retail specialists and will allow Steen & Strøm’s management to continue its successful development programme.”

Meijs told European Pensions that they have decided to invest in Scandinavia because they see good prospects in the region. “According to research GDP growth in the Scandinavian countries will be the highest in Europe in the coming years. So we expect it to be a good addition from a risk return perspective.”

He said the process had taken about six months, and that the organisation is keeping an eye out for other interesting opportunities: “The Asian region at present has our special interest.”