Barings, one of the world’s largest diversified real estate investment managers, announces that it has completed the c.€72 million off-market acquisition, on behalf of institutional investors, of Skvalberget 33, a 6,185 sq m office building in the CBD of Stockholm, Sweden from BLDG Holding AB. The transaction underlines Barings’ conviction in the continued importance of the office as the central focus of businesses’ working practices.
Comprising eight-storeys Skvalberget 33 is fully let to four tenants on leases, with an average of 2.6 years to break, and is currently significantly under-rented. Current occupiers include Academic Work, Meltwater and Stratsys. The final tenant, Beckmans Design School, which occupies three floors, has indicated that it intends to exercise its lease break in 2.5 years, presenting an opportunity to upgrade this space, as part of a wider asset management plan, and capture reversion.
Barings also intends to upgrade the entrance hall and communal facilities, including changing rooms and bicycle storage. Barings has also identified the potential to increase the asset’s total lettable area, subject to planning, by developing additional office space of c. 3,500 sq m on the courtyard, as well as converting the attic space into a further c. 400 sq m of office space whilst also creating an outside roof terrace.
Skvalberget 33 is situated in an excellent location in the Eastern part of CBD Stockholm, Sweden’s economic and political centre, close to local amenities including several of Stockholm’s most popular and well-known restaurants and bars, and within two minutes’ walking distance of Östermalmstorg subway station, connecting to Stockholm Central Station. The building is also situated opposite one of the entrances to the well known and popular Sturegallerian, a high end retail and leisure destination which is currently undergoing a major transformation as part of the revitalisation of one of Stockholm’s most important neighbourhoods. Sturegallerian is being developed to include office, housing, retail and hotels of the highest standard.
This latest acquisition grows Barings’ portfolio in Scandinavia to approximately 170,000 sq m across a range of sectors including offices, logistics, retail and residential. Barings’ investment strategy in the region is focused on logistics investments in the top ten logistics locations in the Nordics; selected office assets with turn around potential in the Nordic capital cities; and high quality residential buildings located in attractive commuter areas near to Stockholm, Copenhagen and Helsinki.
Source : Company