LaSalle Euro Adds Sweden Asset for $52M

STOKHOLM-LaSalle Investment Management said this week that LaSalle Euro Growth II has acquired Kungsgatan 18, an 183,000-sf mixed-use development here that includes 107,600 sf of office space. LaSalle did not disclose the purchase price; however, a source familiar with the acquisition tells GlobeSt.com the asset was purchased for “about 400 million Kronor,” which converts to US $51.9 million.Located in the city’s Central Business District, Kungsgatan 18 was constructed in 1940 by Gösta Videgård. LaSalle Euro Growth II plans to refurbish the office space substantially. In addition to the office space, the building holds the city’s largest movie theater, Rigoletto, which plays host to the majority of film premieres in Sweden.The acquisition represents the first deal for LaSalle in Sweden. Genesta Property Nordic AB, LaSalle’s advisor in the acquisition, will provide local asset management advice on the property and work with LaSalle in the office renovation. The property was acquired from two foundations, Ekhagastiftelsen and Gösta Videgårds Familjestiftelse, both of whom were advised by Tufvesson Partners. LaSalle Euro Growth II is a closed-ended Pan-European property fund, with a total buying power of Euro 1 billion. The fund is targeting opportunities across all property types and to date has acquired assets in France, Belgium, Spain and Greece. Investors include major pension funds, and institutional and high-net-worth investors from Europe and the Middle East.As published in LaSalle’s Investment Strategy Annual 2004, Stockholm is tipped as one of the most interesting European office markets at present. This deal reinforces LaSalle’s confidence in the recovery prospects for the Stockholm market.