Starwood Capital Group and Scius Partners have agreed to sell a portfolio of 51 properties in Sweden to Hemfosa, a Swedish real estate company. The value of the deal is about SEK 3.6 billion. The deal is expected to close in September 2018. Pangea Property Partners KB is serving as financial and M&A adviser to Starwood on the transaction.
MIAMI and STOCKHOLM, July 6, 2018 /PRNewswire/ — Starwood Capital Group, a leading global private investment firm, and its local operating partner Scius Partners, announced today an agreement to sell a portfolio of 51 properties in Sweden to Hemfosa, a listed Swedish real estate company. The transaction, which is expected to close in September 2018, is valued at approximately SEK 3.6 billion. The portfolio of 51 assets consists of offices, warehouse space and logistics assets and totals approximately 460,000 sqm.
Starwood Capital Group, via a controlled affiliate of Starwood Global Opportunity Fund X (SOF X), acquired the assets as part of the SveaReal portfolio in Sweden and DNB NOR Eiendomsinvest I ASA in Norway, which was the largest transaction in the Nordics in 2015. Scius Partners is acting as the local operating partner for Starwood Capital Group for the SveaReal portfolio.
“We are pleased that we have succeeded in repositioning this diverse portfolio which at acquisition consisted of office, hotel, retail and warehouse/logistics assets into a well-managed and well-performing warehouse/logistics portfolio for which Hemfosa, as an institutional buyer, is the most natural long-term owner,” said Richard Vaaje, Senior Vice President at Starwood Capital Group. “Sweden and the Nordic region remains a core focus area for us and we are pleased with the value we have unlocked for our investors with the acquisition, management and now divestment of the majority of the Swedish portfolio.”
“During our ownership we have by actively investing into the portfolio increased occupancy, lettable area, lease terms and rental levels,” added Mikael Freudmann, CEO of Scius. “In addition, we have initiated planning for more than 200,000 sqm residential building rights in Västerås, Stockholm and Lund.”
Pangea Property Partners KB is acting as financial and M&A advisor to Starwood in connection with the transaction.
About Starwood Capital Group
Starwood Capital Group is a private alternative investment firm with a core focus on global real estate, energy infrastructure and oil & gas. The Firm and its affiliates maintain 11 offices in five countries around the world, and currently have approximately 3,800 employees. Starwood Capital Group has raised $45 billion of equity capital since its inception in 1991, and currently manages approximately $56 billion in assets. The Firm has invested in virtually every category of real estate on a global basis, opportunistically shifting asset classes, geographies and positions in the capital stack as it perceives risk/reward dynamics to be evolving. Over the past 26 years, Starwood Capital Group and its affiliates have successfully executed an investment strategy that involves building enterprises in both the private and public markets. Additional information can be found at starwoodcapital.com.
About Scius Partners
Scius Partners is a real estate investment company that currently asset manages over 800,000 square meters of commercial real estate in Sweden valued at approximately EUR 1.3 billion. For more information www.scius.se.