Nordic investor Alecta Fastigheter has acquired a modern education property in central Stockholm from global investor EQT Exeter.
Financial details were not disclosed.
The EQT Real Estate Fund I acquired Hönsfodret 1 in June 2018 after having recognised the need for modern educational-use assets as particularly high in central Stockholm.
EQT Exeter transformed the asset from an obsolete 50% vacant Grade C mixed-use building, into a sustainable Grade A educational-use property that will host four upper secondary schools for 2,200 students in a densely populated neighbourhood. The firm's refurbishment partner was AcadeMedia.
The building has been expanded from a net leasable area of 9,500 m2 to more than 14,000 m2 through EQT Exeter exercising its unutilised building rights.
Henrik Orrbeck, partner within EQT Exeter’s advisory team, said, 'We are proud to hand over the Property to Alecta after a successful transformation project where we have turned a half-vacant building with poor energy performance into a flagship 'green' campus that meets modern demands for attractive and inspiring education premises.'
The property will meet the standards for BREEAM In-Use Very Good, with a high emphasis on sustainable building techniques such as recycling of construction materials, energy efficiency improvements and upgrades to the building fabric to improve thermal performance.
While Campus Södermalm will host local students, the surrounding community will be able to enjoy a publicly accessible, student-operated café, bakery and restaurant on the ground floor of the property.
EQT Exeter and its building contractor Zengun are currently in the final stages of completing the development which is expected to take place during Q2 2022, ahead of the academic year 2022/23.
Jenny Lindholm, chief investment officer, Alecta Fastigheter, said: 'We are very pleased with this acquisition, it’s completely in line with our ambition to drive sustainable and long-term development in attractive growth areas.'
Alecta is the real estate company of Swedish pension fund manager Alecta.
The transaction is expected to close in Q3 2022. EQT Exeter was advised by AG Advokat (legal), Savills (commercial), and Tjuren Projektpartner (technical).
