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Sweden's Catella helps broker €356m Folksam-Atrium Ljungberg asset swap

ÅNÄS Annica © Atrium ljunberg

Sweden-based adviser and fund manager Catella has helped broker a Stockholm asset swap worth a total €356m between insurance firm Folksam and the listed Atrium Ljungberg.

Atrium Ljungberg is to acquire from Folksam Fastigheter, the real estate arm of the insurer, the Tranbodarne 11 office asset, better known as KF-huset, in the district of Slussen - plus a building in front of the property. At the same time, it is selling to Folksam the Blästern 6 property in the Hagastaden district and Roddaren 7 on Kungsholmen.

KF-huset, which offers over 22,000 sqm GLA, is located next to the Stadsgården wharf at Slussen where Atrium Ljungberg already owns neighbouring Glashuset and Sjömansinstitutet. It also has a land allocation at the wharf for a 18,000 sqm GFA development. In spring an agreement was signed with the City of Stockholm to develop Mälarterrassen at Slussen. The new deal is being made via a company sale with an underlying property value of SEK1.53bn (€147m).

KF-huset is a fantastic property with strong roots in Stockholm," said Monica Fallenius, Atrium Ljungberg's Business Area Director. "The acquisition reinforces our position on Södermalm as well as our opportunities to be part of Slussen’s development.” 

The Blästern 6 property in Hagastaden and Roddaren 7, being divested, comprise 32,250 sqm GLA at rental value totalling SEK105m (€10m). This deal is also being conducted through company sale, with an underlying value of SEK 2,175m (€209m). Atrium said the sale will yield a profit after tax of some SEK245m (€23.6m).

"The deal is strategically right for both parties," said CEO Annica Ånäs. "With Folksam Fastigheter’s management focus, the fully developed Blästern 6 and Roddaren 7 properties are positive from a long-term perspective. We, on the other hand, are acquiring a property and a building right that we can develop based on our project expertise, thus helping to generate additional added value for Slussen as a whole."

Atrium Ljungberg is one of Sweden’s biggest listed property companies, managing over 50 assets worth SEK43bn (€4.13bn) with total GLA of 1bn-plus sqm. Its main shareholders are Sweden's Ljungberg and Holmström families as well as the Stockholm Consumers Cooperative Society. It manages commercial properties in Stockholm, Uppsala, Malmö and Gothenburg, plus residential properties in Kista and Malmö.

Folksam, founded in 1908, caters for 4m customers with 3 700 employees working from 30 offices throughout Sweden. With premium income in 2016 of SEK47.9bn (€4,6bn), it is one of Sweden´s largest investment managers with around SEK400bn (€38.46bn) in assets.

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