Deka Immobilien GmbH has sold the City Cronan office building in Stockholm's central business district at a profit. The property has been acquired by Swedish pension fund AMF. It is the largest single transaction recorded in Sweden in the past three years. Both parties have agreed not to disclose the price of the sale.
With this transaction in Sweden, Deka Immobilien has implemented the 12th sale of a property above its current market value this year.
Buildings have also been sold to investors in Korea, Germany, UK, Spain and Austria. Across all transactions, Deka Immobilien achieved a profit of approximately 13% on the last market value of the properties.
According to Schmengler, "This is the result of our active fund management. Our active acquisition policy remains unchanged and at the same time, we consistently exploit any opportunities to sell that arise."
The City Cronan property is mainly used as an office building and boasts total lettable floor space of around 42,000 m². Deka Immobilien acquired the property in 2003 for the Deka-ImmobilienEuropa open-ended mutual property fund. The closing of the transaction is scheduled for the start of 2011.