Search
 

Sweden Office Property Trading at $75M

KISTA, SWEDEN-The Swedish construction company NCC AB is under contract to sell its two-building Borgarfjord office development here to a CalPERS fund. The transfer of ownership is slated for November.

By Brian K. Miller | Updated on October 12, 2004

KISTA, SWEDEN-The Swedish construction company NCC AB says its NCC Property Development subsidiary is selling the two-building Borgarfjord office property here to CalPERS’ NIAM Nordic Investment Fund III for $75.2 million (550 million Kronor). The transaction is slated to close in November.Borgarfjord, located northwest of Stockholm in the center of Kista, consists of two freestanding office buildings with a combined 452,000 sf of leasable space. The buildings were constructed in 1984 and 1988, respectively, and the older building recently has been renovated. Vacancy at the complex is about 14%. The largest tenant is Telefon AB LM Ericsson. Other large tenants include Baxter Medical and World Com.NCC says the divestment of the site-leasehold right for Borgarfjord 2 is part of the company’s strategy of releasing capital through the sale of managed properties. The company says the sale will generate a capital gain of $4.8 million (35 million Kronor). Borgarfjord 2 is one of two investments CalPERS has made in Sweden. A CalPERS representative tells GlobeSt.com that the other Sweden investment is a mixed-use development in Stockholm, but could provide no additional details.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.