AP3, the Third National Swedish Pension Fund, one of a number of so called buffer funds in the country’s pension system, has joined Sveafastigheter to establish a new property company investing in office and retail properties in regional cities.
Sveafastigheter will manage the properties, but the company will be majority owned by AP3.
The company has already completed a number of recent acquisitions, including commercial properties in the Swedish cities of Eskilstuna, Skövde, Halmstad, Trollhättan and Östersund, as well as two retail properties in Karlskrona. The total property value is said to be around SEK700m (€73m).
Klas Åkerbäck, senior portfolio manager at AP3, said: “We see great potential in this type of investment since it is a complement to our existing property holdings. Together with a company like Sveafastigheter, with its local network, I am certain that we can reach an attractive risk adjusted return.”
Johan Tengelin, CEO at Sveafastigheter, added: “We are looking forward to start up a new company with AP3 as long term investor. The idea is to take a stand in Sveafastigheter’s established business model and to create a long term, sustainable property investment in partnership with AP3. The venture fits well with Sveafastigheter’s broadened strategy to offer attractive and clearly structured investment opportunities, with another time horizon than the traditional funds.”