Germany's Union Investment has offloaded the historic Smultronet 6 office building in Stockholm for a price exceeding its latest valuation.
Acquired in 2019, the property at Fleminggatan 39-43/Celsiusgatan 10 served as a valuable asset within their UniInstitutional European Real Estate fund.
Taking over is Swedish real estate investor Niam, with purchase details remaining confidential.
Designed by renowned architect Sven Wallander in 1939 and extensively modernized in 2013, Smultronet 6 stands in the Kungsholmen district, bordering Stockholm's vibrant city center. This prime location, coupled with excellent accessibility, positions the submarket as an extension of the city's core business district.
Offering roughly 11,500 m2 of leasable space across three sections and eight floors, the building currently houses various smaller tenants and a restaurant, with 11% of its space already occupied.
Martin Schellein, head of investment management Europe at Union Investment, said: ‘The sale of Smultronet 6 proves that profitable transactions are possible even in the current challenging environment in the Swedish investment market. The key to the successful sale was the property's significant upside potential, which can now be realised after the former main tenant HSB has moved out.’
Following the departure of its previous main tenant, HSB Housing Association, in May 2023, Niam plans a comprehensive refurbishment and strategic repositioning of the property.
Cederquist advised Union Investment on the legal aspects of the transaction.
