Swedish firm sets new record property price

Swedish property concern Vasakronan has purchased the entire Blåmannen block in central Stockholm for 4.35 billion kronor ($639.51 million), setting a new price record for a commercial property in the country.

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Germany's Commerz Real had put the property up for sale. According to Linklaters, which advised Vasakronan on the deal, the transaction represents the most expensive deal ever for an individual property in Sweden.

The block, also known as Klara Zenit, is bordered by Klara Norra Kyrkogata, Mäster Samuelsgatan, Bryggargatan and Drottninggatan.

"This is a sizeable addition to our portfolio. The property's standard and location, with an office entrance on Mäster Samuelsgatan and shops on the Drottninggatan shopping street, strengthens our offering in a part of Stockholm that we believe will develop very strongly," Vasakronan President Frederick Wirdenius said in a statement on Wednesday.

The Blåmannen 20 property comprises about 70,000 square metres, mainly modern offices in prime locations, but with a considerable part of city commerce. A comprehensive refurbishment and extension was carried out from 2000 to 2003.

Tenants include Clas Ohlson, Hennes & Mauritz and Oriflame.

Vasakronan has a significant property portfolio in Stockholm. The acquisition brings the area of its properties under management to 1.9 million square properties with a total property value of over 53 billion kronor.

Vasakronan recently purchased the Stuten 12 property on Regeringsgatan and aims to continue to increase the presence of attractive office and retail spaces in central locations in Stockholm.

In 2010, Vasakronan sold residential real estate worth slightly more than 5 billion kronor and bought office and retail properties for a similar amount.

"We have had an intensive period with several major transactions in 2010. We traded over 11 billion kronor. Now there will be a break over Christmas, but I believe that 2011 will be an interesting year in the property market," said Lars Johnsson, head of property investment at Vasakronan.

Jones Lang LaSalle also advised Vasakronan on the deal.