Prupim has entered the Swedish property market with the purchase of Paradiset 14, a €41 million landmark office building in Kungsholmen, on behalf of the M&G European Property Fund. Prupim purchased the building from the Niam III Fund for an initial yield of 5.25%.
Paradiset 14 in Kungsholmen, Sweden.
Paradiset 14 is located in Västra Kungsholmen in Kungsholmen and comprises two well specified buildings totalling 11,300 ft². The building is let to Swedish medical firm Biovitrum on a long lease.
Kungsholmen is a mixed use commercial area undergoing major development and experiencing strong rental growth. It is well accessed by the E4 highway with good transport links to the CBD and currently accommodates the headquarters of several global firms.
Prupim's David Jackson, Fund Manager, comments: "We are very pleased to have completed our first prime asset purchase in Sweden on behalf of the M&G European Property Fund. Sweden is currently a leading destination for institutional investment in Europe, offering a robust historical, current and forecasted economy as well as strong rental growth. With our experience in managing similar assets globally, we look are confident we will deliver strong performance from this asset."
Johan Bergman, Managing Director at the Swedish private equity firm Niam, comments: "The property was acquired as part of a large portfolio. It has been fully developed for some time, and Biovitrum is a single tenant on a long lease."
Jones Lang LaSalle advised PRUPIM and Newsec advised Niam