SWEDEN - Real estate investment manager Prupim has entered the Swedish property market by acquiring a €41m landmark office building in Kungsholmen.
The company purchased the building – Paradiset 14 – on behalf of the M&G European Property Fund from the Swedish private equity firm Niam, at an initial yield of 5.25%.
According to Prupim, the building comprises of two well-specified offices, totalling 1,050 m2 and is let to Swedish medical firm Biovitrum as a single tenant on a long lease.
"Kungsholmen is a mixed use commercial area, undergoing major development and experiencing strong rental growth. It is well accessed by the E4 highway, and has good transport links to the central business district. It currently accommodates the headquarters of several global firms," according to Prupim.
Natalie Wood, a spokeswoman for Prupim, added: "We are actively looking for assets, not only in Sweden, but also in Finland and Norway where we haven’t acquired any properties yet."
Prupim was advised by property investment consultant Jones Lang LaSalle, while Newsec advised Niam.
With over €28bn invested in properties Europe, North America and Asia Pacific, Prupim is among the world’s 10 largest property investment managers. It is part of M&G, the investment arm of Prudential in the UK and Europe.
Niam is a northern European private equity firm specialising in property, with owner responsibility for €1.5bn of properties while its funds are raised and managed on a discretionary basis.