Patrizia has acquired a residential development near Stockholm, Sweden, for €62 million from Scandinavian Property Group (SPG).
The residential property in greater Stockholm is a 10,600 sqm development comprising 189 apartments across two buildings, as well as a commercial unit on the ground floor that is leased to ICA, a well-known food retailer.
Johan Lagerdahl, Country Manager and Head of Asset Management at Patrizia Sweden, commented: “This transaction presented us with a good opportunity to acquire a high quality, modern asset that benefits from excellent transport connectivity providing easy access to central Stockholm. Vegastaden is an excellent location and we continue to look for new opportunities in Sweden.”
Jörg Laue, Head of Transactions Nordics at Patrizia, commented: “In the last years, we have established a strong presence in the Nordics and have built a significant portfolio of quality assets across a range of sectors. Patrizia is an established leader in the residential sector and we look forward to making further residential acquisitions in Sweden as its defensive and stable income profile will help deliver reliable returns to our investors.”
Vegastaden is a thriving town located 18 km south of Stockholm, which provides strong public transport links that connect the property to the capital in less than half an hour by train. In the immediate area, Länna Köpcentrum and Port 73 shopping areas both offer extensive retail and leisure provision.
Patrizia recently released its eleventh annual ‘INSIGHT European Residential Markets’ report, which looked at whether residential assets be viewed as a good substitute for fixed income given its superior cash flow characteristics and capital value preservation, as well as providing a 250-300 basis point premium compared with an average ten-year government bond yield.
Patrizia’s Nordics exposure totals more than EUR 1.7 billion AUM.