Valad Europe, the pan-European real estate investment manager, announces the sale of 37 mixed commercial properties in Sweden for 105.5 million, reflecting a net initial yield of 6.5%, to Klövern AB, a Swedish real estate company listed on the OMX Nordic Exchange. The assets were held in Valad's V+ Nordic and V+ Nordic 2 funds.
The 157,000-m² portfolio comprises 37 assets, 31 of which are located in Linköping, four in Norrköping and two in Örebro. Both of Valad's Nordic Aktiv funds invest in high yielding multi-let real estate with a focus on light industrial estates and mixed commercial assets in the four main Nordic countries.
This transaction follows a period of significant activity for Valad in the Nordic region, which includes the awarding of two five-year mandates totaling over 700 million: the 480-million Kefren Properties portfolio of 827,000 m² of office, retail and warehouse properties in Sweden and the 250 million European Commercial Real Estate portfolio of 53 properties, 30 of which are located in Sweden and Finland. In both situations Valad was appointed by the funds' banks and investors.
Michael Bruhn, Head of Nordics for Valad Europe, commented: "These properties were not being actively marketed; however, Klövern approached us and we decided a disposal of the properties would offer the best return for the funds' investors."
"As we continue to increase the number of assets we manage in the Nordic region, we have created the flexibility required to be more active in the market. As a consequence, we will listen with interest to any approaches or enquiries regarding both buying and selling assets. Off-market opportunities of this nature come to us because of our local presence and market contacts."
Given the recent strong performance in the Nordic economies and the expectation that they will outperform other economies in the euro zone, Valad anticipates an increasing level of interest from international investors looking for opportunities in the Nordic real estate market. Furthermore, there is still some way to go before the restructuring of portfolios taken over by international banks has been completed. With four offices in Sweden, as well as offices in Helsinki and Copenhagen, and a team of 50 people, Valad is well positioned to identify emerging opportunities as they occur.
Following this transaction, Valad now manages approximately 1.6 billion of assets in the Nordic region, spread across six of its 15 European funds, comprising 341 properties and 3,331 tenants in 2.4 million m² of space.
Source: Tavistock Communications