STOCKHOLM-In Sweden’s largest single transaction for more than three years, Frankfurt-based Deka Immobilien has sold the City Cronan office building in Stockholm’s central business district. The property has been acquired by Swedish pension fund AMF.
Both parties have agreed not to disclose the price of the sale. Deka Immobilien said it made a profit, which means it should exceed $357 million for which it bought the complex in 2003 for its open-ended mutual property fund Deka-ImmobilienEuropa.
Thomas Schmengler, Deka Immobilien managing director, says the firm received a good offer and seized this opportunity. “Despite the sale, Sweden remains an attractive investment market for us. In the past 14 months, we have acquired properties in Gothenburg and Stockholm. We will continue to actively seek investment opportunities,” he says. Across all recent transactions, Deka Immobilien achieved a profit of approximately 13% on the last market value of the properties, says the firm.
The City Cronan property is mainly used as an office building and has total leasable floor space of more than 450,000 square feet. The transaction is scheduled for the start of 2011.
Allan Saunderson is a managing editor of Property Investor Europe and a contributor to GlobeSt.com.
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