Union Investment has successfully sold the Smultronet 6 office building in Stockholm above the latest valuation. The property has been part of the portfolio of the institutional property fund UniInstitutional European Real Estate since 2019. The buyer is Swedish property investor Niam. The parties have agreed not to disclose the purchase price in this off-market transaction.
The property at Fleminggatan 39-43 / Celsiusgatan 10 was built in 1939 by the renowned Swedish architect Sven Wallander and extensively modernised in 2013. It is located in the Kungsholmen district, directly adjacent to Stockholm’s city centre. The submarket is considered an extension of Stockholm's traditional CBD due to its central location and excellent accessibility.
Smultronet 6 has a lettable area of approximately 11,500m2, spread over three parts of the building with up to eight upper floors. The space is currently 11% let to various smaller office tenants and a restaurant. The building's former main tenant, HSB Housing Association, vacated the premises at the end of May this year. Niam will undertake a full refurbishment and repositioning of the building.
"The sale of Smultronet 6 proves that profitable transactions are possible even in the current challenging environment in the Swedish investment market. The key to the successful sale was the property's significant upside potential, which can now be realised after the former main tenant HSB has moved out," says Martin Schellein, Head of Investment Management Europe at Union Investment.
Union Investment was advised on the transaction by the law firm Cederquist.
Image provided by Union Investment.
Europe Real Estate — an overview of real estate developments in European countries.
