M&G Real Estate has invested €230m in a Stockholm office building, its largest continental European deal.
The investment manager has bought the leasehold of Blekholmen 1 in the centre of the Swedish capital from Nordic real estate manager Niam for its core European strategy.
The refurbished 34,000sqm asset, next to Stockholm’s central station, is let to 30 tenants.
Thorsten Slytå, director of the Nordic region at M&G Real Estate, said: “Against the backdrop of Stockholm’s buoyant economy and office real estate market, demonstrated by the sector’s low vacancy rate of 3%, rental growth is being pushed upwards and investor appetite remains strong for core assets.
“Blekholmen 1 provided a unique investment opportunity for our investors seeking access to this well-established market.”
The deal surpasses the €208m acquisition of Market Central Da Vinci in Rome in a joint venture with GWM Group last year.
M&G Real Estate’s existing portfolio in Sweden is comprised of 44,400 sq m of assets across the office, logistics and retail sectors, worth €83m.
The manager appointed Slytå to manage Nordic assets in August.