Union Investment has acquired a fully let office property in central Stockholm comprising around 11,500m² of rental space. The main tenant in the multi-tenant building is cooperative housing association HSB, which has around 600,000 members in Sweden and occupies some 85% of the space. The property at Fleminggatan 39–43/Celsiusgatan 10 was completed in 1939 by well-known Swedish architect Sven Wallander. It was extensively upgraded in 2013. The vendor is insurance company AFA Sjukforsakrings AB. The purchase price was not disclosed.
“We have acquired five office properties in the Stockholm area for four different funds since 2016. The HSB headquarters building in the Kungsholmen district is an excellent addition to our portfolio. This submarket serves as an extension of Stockholm’s traditional business district due to its central position and very good transport links. We, therefore, expect to see further rent growth in this location,” said Martin Schellein, head of Investment Management Europe at Union Investment Real Estate.
