Aberdeen buys Gothenburg portfolio for €140m

The Stockholm-based firm has acquired a portfolio of mostly office properties in Sweden’s second-largest city from its pan-Nordic fund.

Aberdeen Property Investors, the Sweden based property division of Scottish investor Aberdeen Asset Management, has purchased a €140 million ($205 million) portfolio in Gothenburg, Sweden’s second-largest city.

The Gothenburg portfolio consists of 100,000 square meters in Gothenburg and neighboring Mölndal and consists mostly of office properties. The portfolio also includes some residential units and retail space.

Gothenburg is one of the fastest-growing regions of Northern Europe, according to Swedish analyst Newsec. The city’s population has grown by more than 10 percent in the last decade. Office rents in the city’s central business district have been fairly stable in recent years, but the increasing hard competition for tenants in spite of increasing vacancy rates has put downward pressure on office rents lately.

The investment was made from Aberdeen Property Funds SICAV Pan-Nordic, which has been active in the Nordic region for the past several months. Aberdeen, which has a dozen country-specific funds for the Nordic countries, launched the fund last year targeting opportunistic plays in the Nordic and Baltic countries.

The pan-Nordic fund has invested more than €770 million since its first closing in October, and Aberdeen’s target is for the fun to reach a target investment size of at least €1.5 billion within a two year period. The firm operates quarterly closings, with the next closing for the fund scheduled for September 27.