German fund manager Union Investment has acquired the nine-storey Stockholm Hub office building from Swedish investment manager Mengus for an undisclosed sum.
The 5,900 m2 asset, which is fully let to a mix of tenants, is located at 12 Vasagatan in Stockholm's CBD. It was purchased on behalf of Union Investment's open-ended fund Unilmmo: Global.
'The acquisition of the Stockholm Hub office property represents a rare opportunity to invest in an excellent location in central Stockholm,' commented Martin Schellein, head of investment management Europe at Union Investment Real Estate. 'Renovation works which are currently being carried out around Stockholm’s main station will further enhance this central location.'
Built in 1967 and refurbished in 2016, the property has a BREEAM In Use rating of Very Good. Its principal tenant is watch manufacturer Daniel Wellington, which occupies almost half the rental area. Other office tenants include a management consultancy and a biotech company. There are food and beverages tenants on the ground and first floor.
The transaction follows other recent Union Investment deals in Sweden, including the purchase in February 2017 of the 17,400 m2 U7 office building in Arenastaden.
Pangea advised Union investment on the transaction. 'Halfway through 2017 we see a strong demand for Nordic real estate from international investors, driven by stable macroeconomics and stable long-term property returns,' commented the Nordics-focused property advisor.
The seller Mengus was advised by Cushman & Wakefield.
