Meyer Bergman, the privately owned real estate investment management firm, is launching Oslo Promenaden Fashion District in Norway’s capital city. Working closely with other landlords and it’s Oslo based property management firm, Promenaden Management, the district consolidates Oslo’s most exclusive shopping areas made up of 800 luxury brands, restaurants and cafés, spread across seven iconic streets and anchored by Landmark’s; Steen & StrØm Department Store and Eger shopping gallery – into one tangible destination and brand. The district has already seen a series of new deals with luxury brands as well as several store upsizes.
Meyer Bergman acquired the 12 asset portfolio in the historic city centre of Oslo in 2015, as the seed transaction for Meyer Bergman European Retail Partners III. Targeting a final close in September, this fund is the latest of its value-add funds focusing on dynamic Western European gateway cities for urban, retail-driven investment opportunities. The Promenaden portfolio sits alongside 9 other assets, providing exposure to over €1.6B of GAV in cities including London, Berlin, Milan, Dublin, and Oslo.
Oslo is already the top performing retail market in Norway with 47% of its affluent catchment making up two of the highest wealth categories in the country – described as ‘wealthy’ and ‘prosperous’ households (CACI, 2016). The tourist demand for luxury retail is especially high and driven by the Chinese who have increased sales in Oslo by 29%, taking advantage of the weakened NOK and strong VAT returns of up to 19% (Global Blue, Jan 2017). *Hotel occupancy rates in 2017 have also soared showing a 90% increase with the Chinese market and ambitious plans are set to expand direct flights to and from China and well as other key travel destinations, now that Oslo Airport has completed its expansion in April this year, increasing passenger capacity to 32million a year from 25million.
With this in mind, Meyer Bergman together with Promenaden Management have been working intensively to support the level of store signings at Oslo Promenaden Fashion District. Deals already signed this year include Balenciaga sq ft (150 sq m) on ‘luxury street’ Nedre Slottsgate which joins global fashion houses, Hermès, Burberry, Gucci, Bottega Veneta and more recently opened Louis Vuitton. Two new luxury brand signings will soon to be released.
Kate Spade (123 sqm) has opened on the newly re-positioned international contemporary fashion street Øvre Slottsgate next to Marc Jacobs, and Juice (466 sq m) a new modern multi-brand fashion sportswear store took space at Eger shopping gallery on Karl Johans Gate.
Other notable recent standalone store lettings within the district include; Isabel Marant, Hugo Boss, Ganni, Tiger of Sweden, Volt Atelier, Rag & Bone and Oskar Jacobson and Inditex Group brand Zara is also poised to open its largest store in Northern Europe on four floors approx 4,500 sq m.
There have also been a series of luxury store upsizes with Hoyer fashion department store at Eger shopping gallery adding an additional 6,450 sq ft (600 sq m) floor, facilitating the arrival of Fendi and Loewe exclusively to the Norwegian market, as well as new concessions for Jo Malone and Armani opening in Steen & Strom department store.
As well as upgrades to the retail offering, Meyer Bergman has invested significantly into the public realm, walkways and landmark buildings within Promenaden in order to enhance its historical design features, reflect the quality brands in the district, and create an attractive shopping destination.
Source : Company