HDG fund sells Swedish property for EUR 80m

The Shariah-compliant HSBC Amanah Global Properties Income Fund has sold an office building in Kista, Stockholm to Morley's European Property Fund for EUR 80 mln. The property is let to telecommunications giant Ericsson, according to a statement released by HDG Mansur, manager of the HSBC Amanah fund.

Philip Churchill, head of investment management in Europe for HDG, said: 'Since purchasing this asset over two and a half years ago office yields in Stockholm have sharpened and this transaction represents another example of the fund's ability to execute its strategy by moving its geographic exposure to take advantage of evolving market conditions'.

HDG Mansur was advised jointly by Cushman & Wakefield's Swedish office and the London based cross-border team. Morley's European Property Fund was advised by Knight Frank's European Investment Team.

Magnus Lange, a partner in charge of Cushman & Wakefield's Swedish office, commented: 'This transaction shows the continued attraction of Stockholm and the Kista office market to international investors. The building is recognised as one of the most modern and efficient in the area and the rental outlook looks very positive given the improving market fundamentals.'

The transaction was the eighth carried out by the European Property Fund since March and the fund is now invested in five countries.

HDG Mansur is an international real estate company that provides fund and asset management and property development services. It specialises in structuring and managing funds that comply with Islamic law. As of 30 June this year, HDG Mansur's business included $5.6 bn in international real estate investments, including $2.6 bn of real estate assets under management worldwide. The US-based company has offices in London, New York, and Indianapolis.