AP4, the Fourth Swedish National Pension Fund, has agreed to sell half its shares in property manager Dombron Stakeholders to pension provider AMF for SEK 400 mln (EUR 45 mln). Dombron is one of the largest owners and managers of residential properties in Sweden, with a portfolio of 8,000 residential and student housing units valued at SEK 6 bn in Uppsala, Stockholm, Halmstad and Gothenburg.
AP4, the Fourth Swedish National Pension Fund, has agreed to sell half its shares in property manager Dombron Stakeholders to pension provider AMF for SEK 400 mln (EUR 45 mln). Dombron is one of the largest owners and managers of residential properties in Sweden, with a portfolio of 8,000 residential and student housing units valued at SEK 6 bn in Uppsala, Stockholm, Halmstad and Gothenburg.
AMF is paying for the 50% stake by transferring ownership of a real estate portfolio in Vasteras to Dombron. The portfolio includes five buildings with over 800 apartments.
'We are pleased to have AMF as half owner of Dombron,' said AP4 president Mats Andersson. 'Together we can develop a real estate company that can benefit from the opportunity we both have as long-term investors.'
Dombron's president Jan-Erik Höjvall added: 'With the Fourth AP Fund and the AMF as owners of Dombron we have created favourable conditions to successfully develop our business. We are pleased with the deal and see it as a long term investment.'
The transaction is expected to be completed on April 30, 2011.
AMF Real Estate, a wholly-owned subsidiary of AMF Pensionsförsäkring, owns residential and commercial real estate in Stockholm and Gothenburg with a market value of SEK 24.6 bn. Following the Dombron acquisition, the company's residential portfolio reaches a value of SEK 3 bn.
