German Fund Buying Distribution Facility in Sweden

STOCKHOLM-Locally based Skanska Project Development Sweden is selling its net-leased Myren 1 industrial property in Huddinge, south of Stockholm, to d Deka-S-Property Fund No1 GmbH, a German property fund managed by Deka Immobilien Investment GmbH. The sale price is $35.7 million (265 million Kronor). The transaction is scheduled to close Dec. 1, 2004. The 161,000-sf (15,000m²) building, which will be completed during the fourth quarter of 2004, is expected to be northern Europe’s largest package-sorting terminal. The property is leased in its entirety to Sweden Post. Myren 1 is the Deka fund’s fourth acquisition in Stockholm after CityCronan in the city center, Hilton 2 in Frosunda and Skogskarlen 2 in Bergshamra. “This underlines our long-term interest in and favorable view of the Stockholm market,” says Jens Gottler, head of the Investment Department Europe North and West at Deka Immobilien Investment GmbH. For Skanska Sweden, the sale agreement marks its third the past three weeks. In early July, it announced the pending sale of a two-year-old, 120,555-sf office building in Malmo to a fund managed by Deutsche Bank Group for $47.4 million (SEK $354 million). In late June, Skanska announced it is selling 460,500 sf (42,700 m²) of new and fully leased lab and office space in Sundbyberg and Gothenburg to Stockholm-based AMF Pension for $137 million (1 billion Kronor). Skanska Project Development Sweden focuses on the initiation, development, management and sale of commercial property projects (offices, logistics and volume retail centers). The main emphasis is on Stockholm, Gothenburg and the Oresund region.