The Fourth Swedish National Pension Fund has acquired a residential property company in a direct property deal for €565 million ($692 million).
The fund, which is a government agency that buffers temporary fluctuations in pension system contributions and disbursements, has acquired Dombron from the country’s biggest property company Vasakronan in one of the largest property transactions to have ever taken place in the country.
Vasakronan decided to create a residential property company last year, transferring 8,000 units in the Dombron portfolio as well as professionals to the separate company in order to commence a sale process. The properties are located in Stockholm, Uppsala and Göteborg.
Some of the largest European pension funds and other investors have been entering into deals directly or in club deals in recent times.
Earlier this month, Dutch pension fund ABP joined up with French retail property company Altarea and Crédit Agricole Assurances' life assurance subsidiary, Prevoyance Dialogue Du Credit Agricole, to buy the Cap 3000 shopping centre near Nice in France from Galeries LaFayette for around €450 million.