Sveafastigheter sells property portfolio with a value of EUR 450 million to Partners Group
STOCKHOLM, 18 FEBRUARY 2016
Sveafastigheter has sold a property portfolio, embracing the main part of the remaining assets in Sveafastigheter Fund III. The property value of the portfolio amounts to EUR 450 million. The portfolio was acquired by Partners Group, a global private markets investment manager headquartered in Switzerland, via a secondary transaction on behalf of its clients. The handover was conducted on 18 February.
The portfolio includes 97 properties in Sweden and Finland, incorporating retail, offices and hotels with a total lettable area of 360,000 sqm. Sveafastigheter has been mandated to continue the management of the portfolio, as was also the case when Partners Group acquired a SEK 3.2 billion portfolio from Sveafastigheter Fund II in August 2015.
Johan Tengelin, CEO, Sveafastigheter says
”We are very pleased to have sold a second large portfolio from one of our funds to Partners Group, and to have achieved an excellent exit for investors in Sveafastigheter Fund III. These two portfolio sales verify the interest for the Nordic property markets among international investors. We are delighted to continue managing the assets and look forward to extend our cooperation with Partners Group.”
Fabian Neuenschwander, Senior Vice President, Partners Group
"Following our earlier portfolio acquisition from Sveafastigheter, we have taken the opportunity to purchase another portfolio of cashflow-yielding Nordic assets on behalf of our clients. We continue to believe Nordic markets are well-positioned to perform strongly and also see potential for further value creation in the assets we have bought. As before, we secured an attractive price for our clients and also secured debt financing for the portfolio, positioning it well for the next phase of growth."
Over the last decade, Sveafastigheter has been able to generate exceptional return to its investors and repeatedly been awarded ‘Best Real Estate Investment Manager in the Nordic and Baltic Region’ by Euromoney.
Johan Tengelin, CEO, Sveafastigheter continues
“The portfolio sale to Partners Group is in line with our broadened business model to offer clear and attractive property investment programs, where we can add value through active asset management. Today’s offering spans separate investment mandates and property funds to residential development. Sveafastigheter’s investment programs are structured around segments or themes, to best suit the individual requirements of our customers.“
Sveafastigheter Fund III was launched in 2010 and closed for investments in 2011, with EUR 317 million of equity commitments. The fund has focused on real estate with potential for value creation in Sweden, Denmark and Finland. Four investment portfolios (Grocery Stores Finland, Högkullen Assisted Living, Park Vallila and Copenhagen Residential) out of the original twelve have been successfully divested over the last two years.
After the sale to Partners Group, Linnaeus University in Kalmar is the only asset remaining in the Sveafastigheter Fund III. Linnaeus University was recently subject for a ground breaking ceremony which served as starting point for the project where Sveafastigheter develops and rebuilds 19,000 sqm out of the 23,000 sqm which are embraced by the 20-year lease with the Linnaeus University.
The senior financing was provided by Nordea Bank AB (publ) and pbb Deutsche Pfandbriefbank. The advisers on the seller’s side were Leimförfer and Roschier, and on the buyer's side Wistrand and PwC.
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Sveafastigheter was founded in 2003. The business model in short is to establish and manage multiple independent property investment platforms in the Nordics. Currently, assets under management amount to EUR1 billion. The daily work embraces transactions, asset management, project- and property development and financing. Sveafastigheter is the investment management arm of Brunswick Real Estate - a group of market leading companies within corporate finance, transactions, investment management and debt financing focusing on real estate in the Nordics. Read more at www.sveafastigheter.se and www.brunswickrealestate.com
Partners Group is a global private markets investment management firm with over EUR 46 billion (USD 50 billion) in investment programs under management in private equity, private real estate, private infrastructure and private debt. The firm manages a broad range of customized portfolios for an international clientele of institutional investors. Partners Group is headquartered in Zug, Switzerland and has offices in San Francisco, Houston, New York, São Paulo, London, Guernsey, Paris, Luxembourg, Milan, Munich, Dubai, Mumbai, Singapore, Shanghai, Seoul, Tokyo and Sydney. The firm employs over 800 people and is listed on the SIX Swiss Exchange (symbol: PGHN) with a major ownership by its partners and employees.