The Carlyle Group has announced that it has agreed to acquire a prime office building in central Stockholm, Sweden. Kadetten 27 was erected in 1960 and subsequently extended in the 1970s and 2000, by property firm K/B Kadetten. The property is occupied by well established tenants and offers the potential to add lettable space through site development.
"Kadetten is a superb office building in a central Stockholm location only 10 minutes from the central business district by public transport. While the property is close to the main business area, it offers very competitive rental levels and so is ideal for companies priced out of the CBD," said Thomas Lindstrom, Managing Director, The Carlyle Group.
"Kadetten 27 is The Carlyle Group's third investment in the Nordic region and first in Sweden since building a team here. Kadetten 27 represents an excellent opportunity for us, with limited refurbishment requirements and the potential for increased occupancy and further development on site."
The freehold property, located at Karlbergsvägen 77, Stockholm, includes a lettable area of 9,600 m² and is divided over 84% office, 6% education with the remaining as storage. The property has a strong tenant structure including The International Data Group, one of the world's largest publishers of IT-related information, and the Department for School Development, a state organization.
The acquisition price was SEK 265 million (€29 million). Carlyle is investing in Kadetten 27 through its second European real estate fund, Carlyle Europe Real Estate Partners II.