Nordic investment volumes in the first half of 2017 reached record levels due to unprecedented international investor interest, according to new data from Pangea Property Partners.
Around €22.3 bn of property was transacted in the first half of the year, an increase of 14% from same period last year, setting a new record for the first six months. Foreign buyers accounted for 53% of the deals, the highest level ever recorded.
'The interest for the Nordic region as a whole is very strong at the moment, both from international and pan-Nordic investors,' commented Mikael Söderlundh, head of research and partner at Pangea.
Growth was partly driven by the Norwegian market with a transaction volume of €4.2 bn in the first half of 2017, 58% higher than last year. The Finnish market also contributed with a transaction volume increasing by 80%, mainly because of the acquisition of listed property company Sponda by Blackstone.
Major deals
The largest sector in the first half of 2017 was office accounting for 38% of the Nordic transaction volume, followed by residential accounting for 22% and retail accounting for 15%. The average transaction size amounted to €49 mln, slightly higher than last year.
The largest property transactions in the region included Blackstone/Areim acquiring Finnish listed company Sponda for €3.8 bn, Heimstaden Bostad acquiring several residential portfolios in Sweden, Norway and Denmark for €0.8 bn, Samhällsbyggnadsbolaget acquiring DNB’s head quarter in Oslo from Meteva for NOK 4.3 bn, Niam acquiring 2,000 apartments in Denmark from HD Ejendomme for DKK 4.2 bn, and DCC Energy acquiring 142 assets in Norway from ExxonMobil for NOK 2.4 bn.
'Private investors and property funds were particularly active on the buy side, while listed property companies were large net sellers,' concluded Söderlundh.
