Driven by a very strong Swedish market, volumes in the Nordic property markets reached a record in the first half of 2016. Institutional investors and listed property companies were particularly active on the buy side.
Transaction volumes in the Nordic property market were €18.6bn in the first half of 2016, according to new figures from Pangea Property Partners. This is an increase of 6% from the first half last year and a record first half in the Nordic market.
Growth was mainly driven by the Swedish market, which saw a transaction volume of €9.9bn in the first half, which is 44% higher than first half 2015. The Finnish and Danish markets also had solid increases in transaction volumes. Norwegian volumes were down from a very strong first half last year.
“While the picture varies among the individual countries, the trend for the Nordic region as a whole is very strong. There is a broad range of investors seeking property exposure and the activity is spread across many segments,” said Mikael Söderlundh, Head of Research and Partner at Pangea Property Partners.
The largest sector in the first half of 2016 was office, accounting for 31% of the Nordic transaction volume, closely followed by residential, accounting for 27%. Retail and public sector properties were also active segments, accounting for 20% and 10% of the volume respectively. The average deal size was €48m, compared to €41m last year.
“Looking at different investor categories, institutions and listed property companies have been particularly active and executed a majority of the largest transactions. In addition, there has been strong capital inflow to many property funds,” added Mr. Söderlundh.
The largest property transactions in the Nordic region in the first half of 2016 were:
1. Castellum’s acquisition of Norrporten with properties in Sweden and Denmark (SEK26.2bn / €2.8bn)
2. Sponda’s acquisition of Forum Shopping centre in Helsinki (€0.6bn)
3. Willhem’s acquisition of some 4,300 apartments in Sweden (SEK5bn / €530m)
4. Partner Group’s acquisition of 97 properties in Sweden and Finland (€0.5bn)
5. Intea Fastigheter’s acquisition of Garnisonen in Linköping and Campus in Östersund (SEK2.9bn / €307.6m)
6. Entra’s acquisition of three modern office properties in Skøyen, Oslo (NOK2.5bn / €268.2m)
During the first half of 2016, Pangea Property Partners has advised on about 20 transactions with an underlying property value of about €4 billion, including the largest transactions in Sweden, Norway and Denmark. For example, Pangea Property Partners advised Castellum in the acquisition of Norrporten, the largest Nordic property transaction since 2008. The firm also advised Intea Fastigheter, a new institutional investor club, in the acquisition of two large public sector properties in Sweden, and Norwegian Property in the sale of three modern office properties in Oslo to Entra.
Altogether, Pangea Property Partners’ market share in the Nordics has been close to 25 percent so far in 2016.
“With our pan-Nordic reach and market knowledge as well as presence in London, our ambition is to offer the very best service to national and international investors active in in the Nordic property markets. We are extremely proud of the trust that has been placed in us by leading clients over the past years,” said Bård Bjølgerud, CEO and partner at Pangea Property Partners.