Catella launches 3rd Swedish property vehicle in six months

Independent financial adviser Catella has floated its third Swedish property company in six months after raising SEK150 mln (€16.1 mln) in capital.

The single-asset vehicle, Link Prop Investment, is expected to list on the Nasdaq in Stockholm, having acquired 140 new shareholders and raised SEK 314 mln in new equity in debt.

Link Prop has acquired the Idédebatten 3 property in Linköping, a university town 200 km south-east of Stockholm.

The property comprises two building in the technology area of Mjärdevi Science Park with 25,000 m2 of office space. One building is let to LM Ericsson on a long lease, while the other will be occupied by Swedish-American car parts manufacturer Autoliv from the autumn. Autoliv is also set to move into a third, smaller building which is currently under construction.

‘We are very pleased to once again present a balanced and focused property company with a high capacity for dividends. The company is a result of Catella's strong position in both the property and capital markets,’ said Johan Ericsson, head of Swedish corporate finance operations.

NP3
In December Catella listed northern Swedish property owner NP3 Fastigheter on Nasdaq Stockholm, while the company also created and sold shares in Torslanda Property Investment, which is listed on the smaller Nasdaq First North exchange. Torslanda owns Volvo’s research and development centre in Gothenburg.

Catella has said the availability of relatively cheap financing and low returns on other investments, such as bonds, has driven up the interest in property investment in Sweden. Investor demand in NP3 was around three times higher than the equity raised of SEK 230 mln. Ericsson expects more companies with the same business model to be launched in other parts of Sweden.