Swedish provider of public-sector pensions KPA Pension has acquired a newly-built office property in Stockholm for SEK1.6bn (€149m).

The pension fund, a subsidiary of pensions and insurance group Folksam, purchased the property, Pillar 1, from Swedish property group Fabege, which used investment management firm Catella as transaction adviser.

Lars Johnsson, property manager at Folksam Group, said: “This is a long-term investment that helps us increase our holdings of real estate assets and secure good returns on the customers’ pension money.

“The acquisition is also fully in line with our property strategy, where offices in good locations in large cities are a cornerstone,” he said.

For its part, Fabege said the sale was in line with its overall strategy of divesting fully-developed properties, and creating new value by continuing to develop building rights in attractive growth areas in Stockholm.

The 21,500sqm office, which was built in 2018, is situated in Stockholm’s Globen City area, in which there is a large amount of planned development including housing, offices and other commercial properties.

KPA Pension said the development plans were aimed at strengthening the link between the Globen City area and Stockholm’s Södermalm district, where the pension fund’s office is located.

It said that the total value of its real estate investments is now SEK13bn, with those of its parent company Folksam worth SEK38bn, adding that the deal is part of KPA Pension’s ongoing plan to increase its property assets.