Sveafastigheter and AP3 establish new property company
Sveafastigheter and the Third National Swedish Pension Fund (”AP3”) enters into a cooperation and establish a new property company with focus on office and retail properties in growing regional cities.
The objective is to create a property portfolio with high and stable returns through active and local asset management. The company will be majority-owned by AP3 and managed by Sveafastigheter.
During the summer, three acquisitions have been completed, all with handover on 1 September. The acquisitions comprises fifteen commercial properties in Eskilstuna, Skövde, Halmstad, Trollhättan and Östersund and two retail properties in Karlskrona. The total property value amounts to close to SEK 700 million.
Johan Tengelin, CEO Sveafastigheter says:
”We are looking forward to start up a new company with AP3 as long term investor. The idea is to take a stand in Sveafastigheter’s established business model and to create a long term, sustainable property investment in partnership with AP3. The venture fits well with Sveafastigheter’s broadened strategy to offer attractive and clearly structured investment opportunities, with another time horizon than the traditional funds.”
Klas Åkerbäck, AP3 Senior portfolio manager says:
”We see great potential in this type of investment since it is a complement to our existing property holdings. Together with a company like Sveafastigheter, with its local network, I am certain that we can reach an attractive risk adjusted return.”