Swedish insurer buys Malmö hotel project for EUR 102m

The real estate arm of Swedish insurance group AFA Försäkring has acquired a hotel and conference project in Malmö for at least SEK 900 mln (EUR 102 mln). The hotel is part of the Malmö Kongress scheme being developed by Skanska, the Stockholm-listed construction and development group.

Skanska said the sum of SEK 900 mln represents a minimum value, which could be adjusted upward by the time the property is transferred to AFA's Fastigheter (real estate) business unit.

The Malmö centre will make up an entirely new district that connects Malmö City with the West Harbour. Skanska is building a hotel, conference centre and concert hall with seating for 1,600 spectators. The work is being carried out in close cooperation with the City of Malmö. Skanska will also develop offices and residential buildings in the area.

The property that has been sold to AFA Fastigheter consists of the hotel and congress elements. The hotel will have 445 rooms on 25 floors and the congress section can hold up to 1,500 people. Choice Hotels Scandinavia will be responsible for operating the hotel and congress property.

AFA Fastigheter manages, develops and rents offices, hotels and residential - mainly in Stockholm. AFA Fastigheter is part of the asset management division within AFA Försäkring that is owned by Svenskt Näringsliv, LO och PTk.

AFA Försäkring administers insurance plans for more than four million people in the private commercial and industrial sector, municipalities, counties and regions in Sweden. The total value of the assets under management is about SEK 200 bn, of which real estate accounts for SEK 18 bn.