Solna deal shows German funds returning to Sweden

News

01 April 2002

Internationales Immobilien Institut pays SKr280m for Hilton 4, while DGI, which has also bought in Sweden, has made the first buy for a German fund in Poland

German open-ended funds have returned to the Swedish market with two office deals totalling SKr835m.

Internationales Immobilien Institut (iii) has bought Hilton 4, a 8,630m2 office building in Solna from listed property company JM for SKr280m, in a deal representing a 7.5% initial yield. The property’s tenants include Agresso, Billerud and Vattenfall.

The deal, which represented an initial yield of 7.5%, follows DGI’s debut in the country earlier this year, when it paid SKr555m for Hilton 1, a 19,100m2 office building also in Solna, owned by JM. Catella advised JM while Niam, part of Newsec, advised both funds.

The move into the Swedish market shows the ever-expanding reach of German open-ended funds. The sector as a whole is under pressure to invest its capital as it continues to experience inflows of up to ¬1bn a month. Haus-Invest bought assets in Sweden a few years ago, but has since sold them.

DGI also confirmed that it has bought the sector’s first property in Poland. It paid ¬30m, representing an 11.14% yield, for three office buildings, totalling 12,340m2, at the Kopernik office scheme in Warsaw, which is being developed by Belgian property developer Liebrecht & Wood. The fund has an option on the scheme’s other two buildings, totalling 5,100m2.

Loic De Villard, Cushman & Wakefield Healey & Baker partner and head of investment at the Warsaw office, which advised DGI, said: “DGI’s entry into the Polish investment market is a landmark event. It is a sign that western institutional investors are gaining confidence in the Polish market – especially Warsaw.”

Meanwhile, in Spain, Deka has bought two office investments in Madrid from Fousa and Torre Serrano. It has paid ¬73.5m for the 11,300m2 Paseo de la Castellana, which has tenants including Bank of America and Erliquide. The second building, Marques de Villamejor 5, was bought for ¬50m. The 3,400m2 building is let to BSN. Both deals showed a 6% yield.

Internationales Immobilien Institut pays SKr280m for Hilton 4, while DGI, which has also bought in Sweden, has made the first buy for a German fund in Poland German open-ended funds have returned to the Swedish market with two office deals totalling SKr835m. Internationales Immobilien Institut (iii) has bought Hilton 4, a 8,630m2 office building in Solna from listed property company JM for SKr280m, in a deal representing a 7.5% initial yield. The property’s tenants include Agresso, Billerud and Vattenfall. The deal, which represented an initial yield of 7.5%, follows DGI’s debut in the country earlier this year, when it paid SKr555m for Hilton 1, a 19,100m2 office building also in Solna, owned by JM. Catella advised JM while Niam, part of Newsec, advised both funds. The move into the Swedish market shows the ever-expanding reach of German open-ended funds. The sector as a whole is under pressure to invest its capital as it continues to experience inflows of up to ¬1bn a month. Haus-Invest bought assets in Sweden a few years ago, but has since sold them. DGI also confirmed that it has bought the sector’s first property in Poland. It paid ¬30m, representing an 11.14% yield, for three office buildings, totalling 12,340m2, at the Kopernik office scheme in Warsaw, which is being developed by Belgian property developer Liebrecht & Wood. The fund has an option on the scheme’s other two buildings, totalling 5,100m2. Loic De Villard, Cushman & Wakefield Healey & Baker partner and head of investment at the Warsaw office, which advised DGI, said: “DGI’s entry into the Polish investment market is a landmark event. It is a sign that western institutional investors are gaining confidence in the Polish market – especially Warsaw.” Meanwhile, in Spain, Deka has bought two office investments in Madrid from Fousa and Torre Serrano. It has paid ¬73.5m for the 11,300m2 Paseo de la Castellana, which has tenants including Bank of America and Erliquide. The second building, Marques de Villamejor 5, was bought for ¬50m. The 3,400m2 building is let to BSN. Both deals showed a 6% yield.