Vasakronan fought off international and domestic competition to buy Stockholm’s landmark Hötorg Towers as it looks to consolidate its portfolio in central locations
The landmark Hötorg Towers, in the heart of Stockholm’s central business district, have been sold to Swedish property company Vasakronan for SKr1.9bn.
The Swedish company bought three of the five buildings, comprising 42,000m2 of retail and office space. The buildings have been one of Stockholm’s most prominent features since they were built in the early 1960s.
The buildings acquired by Vasakronan include a recently renovated block. The towers have a diversified tenant structure; one third of the leases are held by banking and insurance companies, a third by retail companies and 16% by IT companies.
Catella Corporate Finance, which handled the sale on behalf of Swedish insurance company Forenade Liv, said that Vasakronan had to fight off strong competition for the buildings from both Swedish and international investors.
The acquisition is in line with Vasakronan’s strategy to concentrate on strong local positions, primarily in central locations. Vasakronan’s president Hakan Bryngelson said: “We have also acquired a number of major properties in Stockholm, Gothenburg and Malmo. In all, Vasakronan has undertaken restructuring transactions of about SKr12bn in the last two months.”
Vasakronan acquired the Bacchus 1 property in Stockholm’s Old Town from AP Fastigheter for SKr120m. The 3,000m2 property, 2,800m2 of which is offices, has 10 tenants ranging from an architectural office to a finance company.
The Old Town district of Sweden is popular among investors. Vasakronan’s chief executive vice-president and manager of the Stockholm region Christer Alvemur said: “The rental market in the Old Town is highly attractive. The market rent has risen between SKr3,500 and SKr4,000 per m2 a year in prime locations.”
