The real estate arm of Norwegian municipal pension fund KLP has acquired SEK1.48bn (€133m) office property in Sweden from Barings.
KLP Eiendom bought the 10,000sqm Härolden 44 asset in Stockholm from the Barings core European real estate strategy.
The building, also known as Fleming 7, is located in central Stockholm on the east side of Kungsholmen. It was originally built in 1964, with extensions added in 1989 and 2017.
In May 2018, Barings Real Estate acquired the office asset from Swedish fund manager Mengus for around €100m.
The building is largely comprised of office space and also provides a range of amenities, including a restaurant, fitness centre, parking, indoor bicycle parking and conference facilities, Barings said.
Andreas Norberg, managing director and country head Nordics at Barings Real Estate, said: “The Stockholm office market has seen a lack of supply of high-quality assets with excellent facilities in desirable central locations, making Fleming 7 a highly attractive proposition to investors.
“Our tenure saw the previously under-rented property surpass our expectations in terms of rental uplift, and we are now looking to redeploy the proceeds to assets in the future.”
Gunther Deutsch, managing director, head of European transactions and country head for Germany at Barings Real Estate, said: “We believe that prime offices in excellent locations in Europe’s strongest cities continue to provide excellent investment opportunities, whether for core capital, value-add investments or, indeed, in joint venture development projects with a local and experienced partner.
“As well as offices, our preferred sectors across our European markets are in the logistics and living sector and, at this point in the cycle, we remain actively eager to explore opportunities on behalf of a range of core, core-plus and value-add strategies in our target countries of the Nordics, Benelux, Germany, UK, Italy, France and Spain.”
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