Sveafastigheter sells off €450m fund III assets to Partners Group

Brunswick Real Estate's investment management arm, Sveafastigheter, has sold a €450 mln portfolio comprising the main part of the remaining assets in Sveafastigheter Fund III.

The portfolio was acquired by Partners Group, a global private markets investment manager headquartered in Switzerland, via a secondary transaction on behalf of its clients.

The transaction was financed by German lender Pbb Deutsche Pfandbriefbank and Nordic player Nordea which provided a multicurrency loan totaling €255 mln. The funding was provided in Swedish krona and euro.

The package includes 97 properties in Sweden and Finland, incorporating retail, offices and hotels with a total lettable area of 360,000 m2.

The deal follows Partners Group’s €340 mln acquisition of a portfolio out of Brunswick Real Estate’s Sveafastigheter Fund II last year consisting of 32 properties in Sweden, Finland and Estonia with a total lettable area of 250,000 m2.

Sveafastigheter was mandated to continue managing the portfolio, as was also the case with the previous Partners Group acquisition.

'This is the second large portfolio from one of our funds that we have sold to Partners Group, verifying the continuing strong interest in the Nordic property markets among international investors,' said Johan Tengelin, CEO, Sveafastigheter.

Fabian Neuenschwander, senior vice president at Partners Group added: 'Following our earlier portfolio acquisition from Sveafastigheter, we have taken the opportunity to purchase another portfolio of cashflow-yielding Nordic assets on behalf of our clients. We continue to believe Nordic markets are well-positioned to perform strongly and also see potential for further value creation in the assets we have bought.'

Peter Leimdörfer, CEO and founder at Brunswick Real Estate, said that the acquisition follows a series of investments in the region, both from domestic and international institutions, and mirrors a current trend of investors looking beyond the Nordic tier-one cities in order to gain a foothold in the market.

'Secondary cities and mixed portfolios, which once wouldn’t be considered as prime targets, are becoming more and more competitive from an investment perspective, and there is a real desire to reap the benefits in the Nordic countries,' he noted.