Kungsleden inks €320m office buy in Stockholm

Swedish listed property group Kungsleden has acquired a 96,000 m2 portfolio of four properties in the city centre of Stockholm from peer Djurgårdsstadens Fastigheter for SEK 3 bn (€320 mln).

The acquisition is being financed with a six-year loan from Danske Bank.

The property group has bought four properties on Gärdet-Frihamnen - part of the new Stockholm Royal Seaport district - and one property in Hammarby Sjöstad, both districts within the Stockholm inner city borders. The properties Rotterdam 1, Tegeludden 13, Stettin 5 and Stettin 6 are located on Gärdet-Frihamnen, while Godsvagnen 9 is located in Hammarby Sjöstad.

Major tenants include the Swedish Customs, the Swedish Fortifications Agency, Biz Apartment, Axfood and Procter & Gamble. The assets are 92% occupied with an average remaining lease of 4.4 years and generates rents of SEK 200 mln.

With the acquisition, Kungsleden is creating an additional inner city office cluster, which will complement the company’s current office and hotel offering in the Stockholm region, the company said in a statement.

'The acquisition means that we will exceed our expansion goal for 2017 as we reach SEK 27 bn in property value already this year, and more than 40% of the total property value will be located in Stockholm,' commented Biljana Pehrsson, CEO at Kungsleden.

Ownership of the properties on Gärdet-Frihamnen will be transferred on 1 December while the property in Hammarby Sjöstad will be trasferred following completion of the construction, which is expected to take place in spring 2017.