SWEDEN – “A small number of reputable institutions” are set to benefit as Carnegie Fastigheter seals a SEK1.2bn (€128m) Swedish property deal.

Carnegie Fastigheter Sverige AB – set up last year by the investment bank of the same name - said it has bought five properties in Stockholm, Gothenburg and Malmö for a total of SEK1.2bn.

“The acquisitions have been completed in four separate transactions in the first quarter of 2006,” it said. “The portfolio consists primarily of modern office buildings but also contains residential, retail and light industry.

“The total area amounts to approximately 85,000 square meters. A landmark building is Kallebäck 17:2 in Gothenburg with Ericsson as the main tenant.” Based on the purchase price, yield exceeds seven per cent.

"It is satisfying that we now have a property portfolio with favourable yield and long contracts in the three largest markets in Sweden,” said chief executive Staffan Olsson. “Given the good current market liquidity we are looking into several projects that would add value to our portfolio.”

Carnegie said the firm’s is owned by “a small number of reputable institutions” which it didn’t name. Carnegie is managing Carnegie Fastigheter and is responsible for the investment process, financing, acquisitions and divestments. Carnegie Investment Bank holds 1.4% of the shares.