Swedish government pension provider KPA Pension has acquired a new office building in Stockholm from local developer Fabege for SEK 1.6 bn (€150 mln).
Pelaren 1, with an area of approximately 21,500 m2, is situated opposite the Tele2 Arena in the Swedish capital, on a site that was formally a public square.
Fabege said that the construction of the new office building had created a 'tranquil' local street on Pastellvägen, separating off Nynäsvägen for residents. The ground floor houses a restaurant that is open to the public, contributing to a thriving street environment. Mobile operator 3 is the largest single tenant and has roughly 70% of the building at its disposal.
'The sale is evidence that the transaction market remains strong in Stockholm,' said Klaus Hansen Vikström, vice president and director of business development at Fabege. 'Demand for modern offices in prime locations is healthy, and we are not seeing any slowdown in the number of enquiries from institutional investors.'
The Swedish developer said that the sale was consistent with its strategy of divesting fully developed properties and generating development rights in Stockholm's growth areas.
Transfer of ownership is expected to take place on 1 July 2019.
The building was completed in autumn 2018, and is environmentally certified to BREEAM-SE Very Good standard.
Catella advised Fabege on the transaction.
