Starwood closes biggest Nordic deal of 2014

The Connecticut-based fund manager has acquired two property portfolios in Sweden and Norway valued at €1.2 bn.

Starwood Capital Group has received approval on the largest Nordic real estate acquisition of 2014. The firm purchased two property portfolios in Sweden and Norway valued at €1.2 billion.

The Connecticut-based firm has acquired the assets from DNB NOR Eiendomsinvest I ASA, a Oslo-based real estate developer firm, and Gothenburg-based real estate manager SveaReal Fastigheter AB after receiving approval at an extraordinary general meeting on Monday.

The transaction includes a portfolio of 106 properties totaling close to 11.8 million square feet, consisting mainly of offices and logistics and industrial assets, as well as hotel and retail properties.

“Following our successful entry into Sweden last year, we are now pleased to be expanding our Scandinavian portfolio through our first investment in Norway with such a strong platform of diverse assets,” said Zsolt Kohalmi, head of European acquisitions at Starwood, in a statement.

Advising on the transaction was Nordic corporate finance and advisory firm Pangea Property Partners, which also provided the financing aspects of the deals.

The transaction was made using capital from Starwood Global Opportunity Fund X, Starwood’s latest global opportunistic property fund.

In October, Starwood held an interim close for Starwood Distressed Opportunity Fund X, its latest global opportunistic property fund, doubling its equity haul to date to $4.2 billion, according to a source familiar with the situation.

The close put the firm comfortably within the vehicle’s $4 billion to $5 billion fundraising target, with a final close expected imminently. Starwood officials declined to comment at the time.

Starwood Capital Group has a global focus and maintains 12 offices in six countries around the world and currently manages almost $40 billion in assets.

A Starwood spokesperson was unavailable for comment at press time.