Hemfosa in EUR 250m Landic VIII portfolio deal

Sweden's Hemfosa has acquired Municipalfastigheter's properties (previously known as Landic VIII) with an underlying property value of SEK 2.2 bn (EUR 250 mln).

The portfolio comprises 57 properties located in 42 small Swedish cities and mostly let to public tenants. They generate rents of SEK 280 mln a year.

Erik Westerlund of Catella Corporate Finance which advised the buyer said: 'This is the first larger distressed transaction seen in the Swedish market where existing banks don’t need to contribute with new financing. We are currently working on a number of similar deals, on behalf of both banks and investors, and this is another significant sign that the property and financing markets have recovered considerably in the last year.'

Tenzing advised the seller.

Last year Hemfosa bought the Landic VI portfolio consisting of 44 properties across Sweden for a total of some EUR 235 mln. The deal marked the country's largest property transaction since 2008.

Catella is still managing the sale of the Landic VII portfolio, the last tranch of assets to be sold after Landic fell into administration earlier last year. The portfolio consists of 10 assets, totalling 155,000 m² and worth around EUR 200 mln.