Germany is top target for Nordic firm in start of pan-European expansion drive

The group has recruited Patrik Attemark as CEO to lead the business beyond the seven countries Newsec currently operates in, with Germany the first target.

Attemark, who begins his new role on 6 December, told PropertyEU; ‘We are doing analysis of different markets in Europe, and Germany is of special interest at the start.’ He said expansion would be by both organic and M&A routes and include opportunistic acquisitions.

‘The UK is also interesting’, Attemark added. The company has had a representative London presence since 2018 to manage client relationships with London-based investors but without a local service offering.

Newsec is a subsidiary of Stronghold, the private company which also owns real estate investment manager Niam.

Principal shareholder and Newsec chairman Urban Edenström said Attemark is ‘a modern leader with considerable track record of successfully developing companies in the service sector by building strong teams, businesses and brands.

‘His experience in acquiring and integrating companies into one structure and one culture combined with his results-driven leadership are qualities that will support our business when we now intensify our European growth strategy with the ambition to, over time, establish Newsec as a leading real estate advisor and manager in Europe.’

Max Barclay, Newsec head of advisory and investment, said boots on the ground would be important: ‘Something we have learned in the past 15-20 years is you need to have critical mass to be both an interesting employer and client adviser.’

About two-thirds of Newsec’s €250 mln - €300 mln annual turnover comes from property and asset management and the business also offers a full real estate service including valuations, leasing and investment broking as well as infrastructure advisory. The business claims to be the second largest property asset manager in Europe already, solely based on its work in the four Scandinavian and three Baltic countries.

The company was founded in 1994, is co-owned by its other partners, and has recently been growing at a rate of 10% a year. It employs 2,000 staff and has approximately €65 bn under management. It carries out real estate valuations worth circa €188 bn.

Barclay said: ‘There has never been as much money allocated to real estate as there is now and it is a global phenomenon. We have got to know most of the large international investors and they also want to have our services in other markets.’

The Nordics investment market has already broken records this year. Newsec’s forecast for the whole year is €70 bn of transactions, with Sweden accounting for half the volume.