A new company established by Sweden's first national pension fund has acquired a 860,000-m[sup]2[/sup] property portfolio for more than SEK 7 bn (EUR 765 mln).
A new company established by Sweden's first national pension fund has acquired a 860,000-m2 property portfolio for more than SEK 7 bn (EUR 765 mln).
The real estate transaction is one of the largest in Sweden this year.
The acquisition by Willhem AB involves 11,100 units in Stockholm, Gothenburg, Malmö, Jönköping, Borås, Karlstad and Linköping. Some 87% of the space is residential. The vendors are clients of Nordic financial services group Acta.
'We have taken the opportunity to make a sound investment in residential properties where we see strong development potential,' said Johan Magnusson, managing director of the first national pension fund (Första AP-fonden).
'The investment is consistent with our mission in the pension system, which is to pursue long-term investments with a low level of risk and high returns. Through Willhem, we are building a long-term and responsible real estate company with an ambition to grow,' Magnusson added.
Första AP is one of five buffer funds whose role is to invest on behalf of the Swedish national pension scheme.
The deal is conditional on shareholder and regulatory approvals. The formal transfer of ownership of the properties to Willhem will take place around the turn of the year and the company is expected to have taken over all operating activities by the spring. Property management will be handled using the company's own resources.
Mikael Granath, managing director of Willhem: 'Although we are a new real estate company, our management has longstanding experience of the housing and real estate industry. We take this acquisition very seriously and look forward to establishing good and lasting relationships with all of our tenants'.
ABG Sundal Collier and Pangea Property Partners acted as advisors in the transaction.