Swedish pension fund AMF has acquired a 46,000 m2 office and commercial building in Stockholm from German lender Aareal Bank for SEK 3 bn (€323 mln).
Swedish pension fund AMF has acquired a 46,000 m2 office and commercial building in Stockholm from German lender Aareal Bank for SEK 3 bn (€323 mln).
Aareal had come to own the property at Fatburssjön 10 in Stockholm's Södermalm district via a foreclosure. The bank's real estate business, Aareal Estate, carried out a market repositioning of the building, which is also known as Fatburen, prior to the sale.
The building comprises offices, restaurants and a gym over 46,000 m2. The tenants include Dice, Sungard, Ecolabelling Sweden and Stockholm County Council. Some 3,000 people work at the property, which is almost fully let.
The acquisition was carried out by AMF Real Estate, AMF's property platform. Fredrik Ronvall, transaction manager at AMF Real Estate, said that Södermalm had great potential as a vibrant urban environment due to a good mix of housing, offices, retail and entertainment options.
'The office market in Södermalm is changing and we see new cluster of fast growing, creative companies active in technology, game design, advertising and the media among our tenants,' added AMF Real Estate CEO Mats Hederos. The completion of the 6-kilometre City Line train tunnel will further enhance the development of the district, he added.
AMF Real Estate will own 131,000 m2 of lettable area in Södermalm following completion of the investment transaction in April 2016. The company's overall 38-asset portfolio of office and retail properties in Stockholm comprises 676,000 m2 and is valued at SEK 60 bn.
