GE Real Estate Nordic has sold a 29-property strong portfolio to newly formed Swedish investment company Roxanne Fastighetsfond.
The deal for the portfolio, the assets of which are located across 15 Swedish municipalities and total 2.47 million square feet, was agreed at an undisclosed price.
GE said in a statement today it would continue to hold an interest in the properties through an investment in Roxanne, which was created to hold and manage them. The firm will continue investing in the country, it said.
Roxanne will target properties where government or municipal tenants provide more than 80 percent of the rental income. Financing for the company has come from a mixture of equity from Swedish pension funds – an initial SEK 750 million (€70m; $95.2 million) of equity has been raised – and debt from third-party sources. The company aims to double the size of its portfolio within eight years.
Other than GE, investors in Roxanne comprise pension funds Folksam ömsesidig sakförsäkring, KPA Pensionsförsäkring AB, Kåpan Pensioner Försäkringsförening, Vattenfalls Pensionsstiftelse and Stiftelsen för Strategisk Forskning.
GE’s Stockholm office will be retained by Roxanne as asset manager. It will be charged with sourcing new investments as well as managing the initial portfolio.