Union Investment has spent €244m on a Stockholm office asset.

The Hamburg-based investment manager said its purchase of the Vattenfall headquarters in the Swedish capital was its largest in Scandinavia to date.

The fully let asset, in Arenastaden, was bought for the manager’s open-ended real estate fund Unilmmo: Deutschland.

The 44,000sqm building was sold by Swedish developer Fabege, which will continue to manage the property.

Philip La Pierre, head of investment management for Europe at Union, said: “The combination of its location close to the city centre, very good infrastructure links and emphasis on environmental factors explains the appeal and rapid growth of Arenastaden.”

Modifications to Stockholm’s underground network, plus a new airport line, were also reasons behind the deal, Union said, with the Arenastaden district expected to become even more attractive.