MGPA Acquires a Prime Retail Property in Copenhagen

LONDON, August 15, 2011 -

MGPA, the independent private equity real estate investment advisory company, on behalf of MGPA Europe Fund III (the Fund), is pleased to announce the acquisition of a landmark high street retail property, home of the well-known department store “Illum” in central Copenhagen. The acquisition is a joint venture with Partners Group and a Canadian institutional investor, where the Fund holds a majority stake and controlling interest. The purchase price was in the region of €220 million and Senior Debt was provided by SEB.

The property consists of two adjacent buildings for a total of 40,300 sqm of gross lettable area (GLA) and is located in Copenhagen’s prime retail district, benefiting from prominent road frontage on four sides. The most visible corner of the site is at the junction of the two most prominent pedestrian retail streets in the city. The majority of the space is leased to historic department store operator Illum on a 15 year basis while MGPA also intends to create high street retail units, including flagship stores for international retailers.

The seller is Magillum Properties A/S, a part of the Solstra Group. Solstra owns the Illum retail operation as well as the land mark property KgS Nytorv, housing the Magasin department store, and other property and retail investments.

Laurent Luccioni, Chief Executive of MGPA in Europe commented; “MGPA is very pleased to be purchasing such a high quality and iconic Danish asset. This builds on our strategy to acquire key buildings in the most prominent retail locations and add value through redevelopment and leasing. 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. MGPA will also leverage on its experience developed on a similar prime asset in Paris, Les Trois Quartiers, on which we have been creating significant value over the last two years.”

“We look forward to working with our partners to continue the positioning of this asset to its highest and best use.”

Claude Angéloz, Partner and Co-Head Private Real Estate of Partners Group, adds, “We are very pleased with our investment into this high profile property. It is consistent with our strategy of focusing on high quality real estate in excellent locations and strong economies that provides significant upside potential through active asset management. The retail investment we completed in the Copenhagen market last year has ensured we are already very familiar with the local market and its dynamics which has helped us to thoroughly underwrite this new investment and identify its attractive upside potential.”

About MGPA        

MGPA is an independently managed private equity real estate investment advisory company focused on real estate investment in Europe and Asia. Through its network of offices in Europe and Asia, MGPA currently manages approximately US$10 billion in assets throughout these two regions. Its managed investments include development and redevelopment projects, joint-ventures and real estate operating companies in the office, retail, industrial, residential and hotel sectors. www.mgpa.com.

About Partners Group

Partners Group is a global private markets investment management firm with over EUR 20 billion in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, New York, São Paulo, London, Guernsey, Luxembourg, Munich, Dubai, Singapore, Beijing, Seoul, Tokyo and Sydney. The firm employs over 500 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a clear majority owned by its Partners and all employees.

Note to Editors:

A picture accompanying this release is available from the European Pressphoto Agency (EPA). To view, go to https://webgate.epa.eu/ and log in using Username: prnewswire and Password: guest01

Contact details Citigate Dewe Rogerson, Sarah Gestetner/Nicola Swift, Tel: +44-207-282-2920, Email: sarah.gestetner at citigatedr.co.uk