AMF Fastigheter, the real estate subsidiary of Swedish pension fund AMF, has bought the 18,600sqm Stockholm commercial property Tobaksfabriken (Tobacco Factory) from CBRE Investment Management for SEK1.54bn (€135m).
The purchase of the architecturally-significant building, built for the Swedish state tobacco company a century ago, on the south-central Stockholm island of Södermalm, adds to AMF’s growing portfolio of commercial real estate in the district, according to an announcement from the blue-collar occupational pension fund.
Fredrik Ronvall, head of real estate investments at AMF Fastigheter, said: “Our vision is to create entire urban spaces where people want to be, feel good and are given the opportunity to contribute to the development of the place.
“By acquiring the Tobaksfabriken, we can take a bigger hand in the work of developing and strengthening the place’s identity in this dynamic district even more,” he said.
The pension fund said it already owned the neighbouring property Tobaksmonopolet, which is let to tenants including designers and furniture manufacturers.
Last month, AMF Fastigheter bought the lease on nearby 1980s office and residential block Göta Ark 18 for SEK1bn from Swedish property firm Balder Storstad, and it also owns the Fatburen and Stockholmsverken properties on Södermalm.
AMF Fastigheter said it planned to develop the Tobaksfabriken property with a new building along the street Maria Bangata, creating a glazed courtyard that it said would become a meeting place for the whole area.
Ronvall said AMF’s strategy was to strengthening its presence in selected locations, and in clusters, “contributing to long-term value development through vibrant and inclusive urban spaces”.
To read the latest IPE Real Assets magazine click here.
