Orion fund sells giant business park in Sweden

A fund managed by Orion Capital Managers has sold the InfraCity commercial portfolio in Väsby, near Stockholm, to local private investment manager Profi.

Financial details were not disclosed. However, Swedish media put the deal price at SEK 1.7 bn (€204 mln), making it the largest transaction in the country so far this year.

Orion bought the portfolio back in 2005 from Swedish property company Vasakronan for SEK 1.4 bn (€168 mln) on behalf of its European 2 Investment Sarl. It was the company's first investment in Sweden.

Located between Arlanda and Stockholm, the package comprises five large blocks, with a total premises area of about 190,000 m2. About half comprises office premises and the other half hotel, retail, production and warehouse space. The hotel is operated by Scandic Hotels.

In a statement, Profi said it plans to further develop the business complex and continue the revamp carried out in recent years.

'We strongly believe in InfraCity. The prospects for the region's continued growth are attractive. As an example, in 2013 Bauhaus opened a 17,000 m2 department store next to InfraCity. We will take an active role in the area's development,' said Profi's president Staffan Olsson.

The deal is expected to be completed shortly.

Profi, with a portfolio of over 500,000 m2, focuses on the Swedish regions of Stockholm, Gothenburg and Malmö.

Property adviser Tenzing acted for the vendor.