Union Investment buys Vattenfall's HQ in new area of Stockholm for €240m

Union Investment Real Estate is acquiring the headquarters of Swedish power company Vattenfall in a new area under development in Greater Stockholm for SEK 2.25 bn (€240 mln).

Hamburg-based Union Investment is buying the 44,000 m2 property at Uarda 5 in Arenastaden through a share deal from Fabege, a Swedish listed property company.

The transaction, which will generate a gain of SEK 159 mln before tax for Fabege, is expected to close on 1 March 2016. Fabege will continue to manage the property, as wellas the development of Arenastaden. Located next to Solna train station a few kilometres north of central Stockholm, Arenastaden features office buildings, at least 2,000 new homes and Unibail-Rodamco's 101,000 m2 Mall of Scandinavia.

Energy-efficient
Uarda 5 comprises 44,000 m2 of office space and is currently fully let to Vattenfall, and to an external restaurant, generating an annual net operating income of nearly SEK 100 mln. The property is certified at the SGBC GOLD level and is one of Sweden’s most energy-efficient office buildings. according to Fabege.

'The property favourably matches the demand in the investor market, meaning that it is fully developed, fully let and has a long-term tenant. The sale creates scope for additional value-generating Investments,' said Christian Hermelin, CEO of Fabege.