CBRE Investment Management has agreed the forward funding acquisition of a residential asset located in Ursvik Sundbyberg, Greater Stockholm, with expected completion in Q4 2024. The agreement is with Magnolia Bostad, a leading Swedish residential developer.
The asset comprises 177 sustainable and good quality apartments, which are affordable for middle-income households in Stockholm. The assets consist of 8,097m² of residential space and 311m² of commercial space. Planned works include the addition of a rooftop terrace on the seventh floor, as well as bicycle storage and a garage in the basement and on the ground floor. The latter will provide parking facilities for more than 400 bikes and 69 cars, of which 21 will be equipped with electric charging stations.
The asset is located in Ursvik Sundbyberg, a municipality within Stockholm Sundbyberg and one of the largest development hubs in the Stockholm region. An attractive residential location, around 9 km from central Stockholm, Ursvik is home to circa 5,000 people – a population that is expected to grow to around 18,000 by 2026, supported by existing amenities, including retail locations, schools and pre-schools, as well as the introduction of new ones. The area is also well connected: an extended tramway, connecting Kista with Bromma, will deliver two new stations to Ursvik, set to open in 2022.
“This asset not only addresses a significant undersupply of affordable rental apartments but also promises stable and inflation-linked long-term income to our investors while making a significant social impact,” said Paul Oremus, Managing Director for CBRE Investment Management.
Andreas Norberg, Head of Investment Operations, Nordics at CBRE Investment Management, said: “This acquisition – the third this year we have done with Magnolia Bostad - is an exciting opportunity to provide affordable and high-quality rental homes to a market where such assets are very much in demand. Ursvik is a burgeoning and well-connected residential market, set to see a significant population increase in the near future, in line with the overall growth trajectory for Stockholm’s population, which is expected to grow by 21% in the next fifteen years.”
