Carlyle buys Swedish mixed-use portfolio for €337m

The Washington, DC-based private equity firm has acquired an office and residential portfolio in central Stockholm on behalf of its third European real estate fund.

The Carlyle Group has purchased a 197,775-square-metre (2.1 million-square-foot) mixed-use portfolio in the Nacka Strand section of central Stockholm for €337 million. The Washington, DC-based private equity firm acquired the portfolio from Vasakronan, a real estate company jointly owned by the First, Second, Third and Fourth Swedish National Pension Fund.

The deal is the latest to be made through Carlyle Europe Real Estate Partners (CEREP) III, a 2007 vintage fund that raised €2.2 billion in equity. The fund, which targets opportunistic real estate investments in Europe, has picked up various office, retail and residential properties across the Continent– including the acquisition of the Gallerian and Punkt retail galleries in Västerås, Sweden from Boultbee last year.

The Stockholm portfolio consists of 16 properties comprising 49 buildings and parking facilities for about 2,000 cars. Those properties are located 10 minutes from Stockholm’s city centre and five minutes from the Nacka Forum shopping mall.

“This is a really prime asset with significant potential for future development to further enhance both the residential and office facilities,” said Thomas Lindstrom, managing director at Carlyle European Real Estate and head of its Swedish operations.  In a statement, the alternative asset manager cited the portfolio’s “prime oceanfront location” and the “strong growth potential” of Nacka Strand, which has approximately 5,500 people working or attending school in the area.