Europa Capital, in partnership with Nordic asset manager NCAP, has acquired an office property Stockholm for its pan-European value-add fund.

The Europa Fund V fund bought the Brädstapeln 13 building from Swedish insurance firm Gamla Livförsäkringsaktiebolaget SEB Trygg Liv for an undisclosed sum.

Constructed in 1972 and refurbished in 2003, Brädstapeln 13 comprises 12,000sqm of office accommodation arranged over 6 floors, with 114sqm of retail on the ground floor and potential to expand the total lettable space.

Europa Capital, assisted by NCAP will carry out an extensive asset management programme at the property, which will see it undergo a full refurbishment to modern standards.

Hugo Black, partner at Europa Capital, said: “Stockholm is a key market for us due to its favourable market dynamics, including a rapidly rising urban population and a higher gross domestic product growth forecast than the other Nordic countries, making it one of the most attractive cities for investment in Europe.”

Black said office employment has grown by over 17% in Stockholm since 2010, but office supply has only grown by 5%.

“There is limited opportunity to create new supply of office space in the city, so by undertaking a full refurbishment of Brädstapeln 13 we believe we will be able to capitalise on the strong occupier demand and thereby deliver a compelling investment opportunity.”

John Routledge, partner at NCAP said: “We believe the property is very well placed to benefit from the very positive developments in the Stockholm office market.

“Not only do we see tremendous potential in the building itself, but we expect to see current market trends helping to reinforce this part of Kungsholmen, as one of Stockholm’s premier office locations.”