IVG Funds acquires office project from Skanska

IVG Funds has acquired an ongoing office project in a suburb of Stockholm from Swedish construction and property giant Skanska for SEK 400 mln (about 36 mln).

The 12,000 m² property project, Magasinet 1, located on Sturegatan in central Sundbyberg is certified in accordance with the EU Green Building programme. This means that the building's energy consumption is at least 25% lower than the level specified in the standard set by the Swedish National Board of Housing, Building and Planning.

Skanska started construction of Magasinet 1 in June 2007 and the property will be completed for occupancy in May 2009. The handover to IVG Funds takes place in September 2009. Skanska said the sales price was in line with its own internal market valuation.

Svenska Kraftnät, the government-owned utility company which administers and operates the national electrical grid in Sweden, is leasing 95% of the property. The remaining space on the ground floor will house retail.

'We are glad, adding this prime office building to our Swedish portfolio, and we are especially happy with the Green Building classification. The investment is secure with a long lease to a government-owned tenant, which is key in today’s market. This is our second transaction with Skanska in Sweden and we are looking forward to future cooperation,' said Jörg Laue, senior transaction manager Nordic Region, IVG Asset Management.