Pan-European real estate investment manager Europa Capital, in partnership with Nordic asset manager NCAP, has acquired an office in Stockholm on behalf of Europa Capital’s pan-European value-add fund, Europa Fund V, from Swedish insurance company, Gamla Livförsäkringsaktiebolaget SEB Trygg Liv.
Financial details were not disclosed.
The deal marks Europa Capital's debut in Sweden, a market which the firm told PropertyEU it had been monitoring for some time. Europa has been investing in Scandinavia since 2015, completing transactions in excess of €500 mln.
'Stockholm is a key market for us due to its favourable market dynamics, including a rapidly rising urban population and a higher GDP growth forecast than the other Nordic countries, making it one of the most attractive cities for investment in Europe,' said Hugo Black, partner at Europa Capital.
The office at Brädstapeln 13 comprises 12,000 m2 of office accommodation arranged over six floors, with 114 m2 of retail space on the ground floor, and potential to expand the total lettable space, according to both firms. The property itself was constructed in 1972 and refurbished in 2003.
Located on the island of Kungsholmen in central Stockholm, Brädstapeln 13 is a short walk over the canal from the new Stockholm City Station, the busiest railway station in Sweden.
Europa Capital, assisted by NCAP, will carry out an extensive asset management programme at the property, which will see it undergo a full refurbishment to modern standards.
'Office employment has grown by over 17% in Stockholm since 2010, but office supply has only grown by 5%. There is limited opportunity to create new supply of office space in the city, so by undertaking a full refurbishment of Brädstapeln 13 we believe we will be able to capitalise on the strong occupier demand and thereby deliver a compelling investment opportunity,' Black added.
John Routledge, partner at NCAP commented: 'Opportunities such as this are few and far between in Stockholm, so we are delighted to have been able to secure Brädstapeln 13 with Europa Capital.
'Not only do we see tremendous potential in the building itself, but we expect to see current market trends helping to reinforce this part of Kungsholmen, as one of Stockholm’s premier office locations.'
Advokatfirman Törngren Magnell advised Europa Capital and NCAP on legal matters.