Alecta has bought 10 properties in the waterfront area of Nacka Strand, on an inlet to Stockholm harbour, from US private equity firm the Carlyle Group.

The buildings contain 110,000sqm of rentable space and have 300 commercial tenants. 

The portfolio of mainly offices also includes hotels, public buildings and educational facilities. 

Fredrik Palm, head of Alecta Real Estate, said the area, with its diversified tenant structure and good development, made the deal interesting.

The purchase price was not disclosed, but Palm indicated it was more than SEK2bn (€210m).

“Nacka is one of Sweden’s fastest-growing municipalities, and the decision to extend the metro to the centre of Nacka obviously makes the area more attractive in the long term,” he said.

Palm said there was high demand for premises in the area and that the establishment of Stockholm Fashion District there, with 12,000sqm of space, was an example of what was now going on in the area.

“We foresee investment in Nacka Strand as long as we continue development along with other players in the field,” he said.

The area of Nacka Strand was mainly developed in the early 1990s, with the conversion of the old car factory there and the construction of several new office buildings.

Carlyle then bought the whole area in 2012 from Swedish government-owned real estate company Vasakronan and worked on plans for new homes and the conversion of offices into residential use.

A plan is in place to create around 1,500 new flats in Nacka Strand, which Alecta said would mean further investments in services and communication in the next few years.