Union Investment has acquired a fully let office property in the Stockholm office submarket of Arenastaden for its open-ended real estate fund Unilmmo: Deutschland. Office space comprises 97% of the total rental area of 44,000m² and is fully let on a long-term basis to state-owned energy provider Vattenfall, which has its global corporate headquarters in the building.
The property was purchased from Swedish developer Fabege AB for approximately €244m. Fabege will continue to be responsible for property management of the building, which was completed in 2012. This is Union Investment’s largest investment by Union Investment in Scandinavia to date.
In 2012, the office complex was recognised as the best green building in Europe. Comprising four separate buildings with eight to 13 floors, the Vattenfall complex is located in the newly developed district of Arenastaden, currently the most attractive submarket outside central Stockholm. Arenastaden boasts a mix of retail, office and residential uses.
Philip La Pierre, head of investment management Europe at Union Investment, said: “The combination of its location close to the city centre, good infrastructure links and emphasis on environmental factors explains the appeal and rapid growth of Arenastaden. Thanks not least to the strong location and tenant quality, Vattenfall HQ really is the perfect investment for our long-planned re-entry into the Stockholm market.”
Given the planned connection to Stockholm’s underground network in 2022, plus the likely link to the airport line, Union Investment expects the Arenastaden submarket to become even more attractive upon completion.
