Sveafastigheter acquires properties in Finland

Sveafastigheter makes its first Finnish acquisition – buys 18 properties in Turku and the rest of South-Western Finland

The real estate private equity fund Sveafastigheter Fund II has signed an agreement to acquire 18 retail properties, mainly located in Turku and South-western Finland with an aggregate lettable space of 11,500 square metres where Finnish retailer Tradeka is the largest tenant. Total purchase price amounts to approximately EUR 11 million. The acquisition is carried out in co-operation with the Finnish asset management company HGR Property Partners, which will own a minority stake in the portfolio. The deal also signifies the launch of a co-operation between Sveafastigheter and HGR aimed at carrying out further acquisitions in Finland. The acquisition of this portfolio is not only Sveafastigheter’s first acquisition in Finland, it is also the first acquisition carried out in the Sveafastigheter Fund II real estate private equity fund. Since 2003, Sveafastigheter has carried out acquisitions with a total underlying property value of close to SEK 5 billion in its first fund – Sveafastigheter Sverige I. Sveafastigheter Fund II has a fund capital of approximately SEK 1 billion which is intended to be invested in real estate in Sweden, Finland and other countries around the Baltic Sea, with the main part to be invested in Sweden and Finland. The intention is to acquire properties with an underlying value of approximately SEK 10 billion. – This spring has been a busy period for us, working with setting up the new fund and evaluating potential acquisitions. It is therefore gratifying to see this work pay off and we are very happy to be able to carry out our first acquisition in Finland in a deal that should provide an attractive return for the fund’s investors. In addition, the co-operation with HGR has been successful, which bodes well for future acquisitions in Finland, says Simon de Château, CEO of Sveafastigheter. About Sveafastigheter Sveafastigheter is a private equity firm focusing exclusively on real estate investments. The company launched its first fund, Sveafastigheter Sverige I in 2003. In April 2006, Sveafastigheter launched its second fund, Sveafastigheter Fund II. Sveafastigheter Fund II is a real estate private equity fund for institutional investors and has a capacity to acquire properties with a value of approximately SEK 10 billion. The fund primarily targets investment opportunities in Sweden, Finland and around the Baltic Sea with a high and sustainable current income, regardless of location and type of property. Sveafastigheter has since 2003 acquired properties with an underlying value of SEK 5 billion with total lettable space of 700,000 square metres.